I just bought some corporate bonds of giant asset manager Franklin Resources (BEN) ($1.4 trillion under management).
They are rate A2/A by Moodys and S&P. Maturity is 3/30/2025.
Yield to maturity is around 5.4%.
Cusip is –
354613AK7/ US354613AK71
I found these particular bonds on eTrade.
Looks like the Fed owns $1MM of this issue: https://www.federalreserve.gov/publications/files/smccf-transaction-specific-disclosures-11-24-20.xlsx
Fidelity charges me $1.00 for bond and secondary CD transactions.
Fido also limits maximum commission per bond trade to $250 so if you’re buying big buck amounts you can get it down below $1/bond. That max goes to $50 for securities under 1 year in maturity I believe.
To be clearer, Fidelity charges me $0.10 per $100 quoted price or $1 per $1000 bond. I find the price versus the quote more relevant, which is why I use it. I can usually see the mark-up in the bond trace history.
Whoever paid 95.695 on 2 bonds today got marked up $0.50 while whoever paid $95.379 on 5 bonds got marked up $0.10. If that $95.379 trade was Etrade mark me down as mistaken. That’s a reasonable commission, just as good as Fidelity.
Doesn’t eTrade have a large mark-up? My buddy was getting a $1.00 mark-up on his quote a while back versus $0.10 for me on Fidelity.
I see a small trade today shown as being purchased with a $1/bond markup at 95.379 net to customer to yield 5.221% YTM according to Fidelity…. If that’s the trade, Fidelity’s markup would be the same $1/bond…. I just filled out a theoretical buy to verify the markup at Fidelity…. It equates to $1/bond Either that or you;ve got one sweet side deal going for you with Fido now, MC.. lol
M Crouse–will have to go in a check tonight for the exact number. I will check with FIDO and see what they have for availability (if any) on this issue. We have accounts at both.