I picked up some Charles Schwab notes

- Is it callable? Did I miss something or did you omit the most important aspect? Not that it matters with the upcoming rate hike.
- With comparable T bills paying 5½%, and a rate hike expected in two weeks at the FOMC meeting, you are not being compensated for the additional risk of a corp bond.
- Did you cross the spread?
- What did you pay in commissions, and fees?
- What broker?
- What is this bond rated?
- You left out a lot of important stuff!
- I’m calling this a bad buy. Nothing personal, of course. I’m here to help <3
- Generally you should get at least 1% more than a Treasury issue with comparable maturity for assuming the additional risk of a corporate bond.
- In this market, at a minimum I’d bid a 6½% yield, if not 6¾ or even 7%, to add that to my portfolio.

Look here: the US Treasury just auctioned a 52-week bill on 7/13 at 5.428% yield.
https://www.treasurydirect.gov/auctions/announcements-data-results/

If you were a friend and we were at a bar having a drink I’d smack you and curse you out for this move.:confused:

Sell that s#!t asap—get it off your books before the Fed raises rates and it’s resale value plunges.

—Keith
Non-professional - Not licensed - Not qualified to give advice - Opinion only
 
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This is an old bond when the benchmark rate was nearly zero, credit risk is priced it below par. New issues these days for non bank financials are about 5.5 to 6. I saw USB London 1 year note at 5.75, considering the balance sheet risk they have on the books. Money is still cheap.

OP made his choice to get Schwab in particular, it is a judgement call, not a losing trade IMO.
 
kmiklas said:
Sell that s#!t asap—get it off your books before the Fed raises rates and it’s resale value plunges.
More...

Well, since we're sharing...

I've attached a list of our current bond holdings.

@kmiklas Do you think we have any s#!t that we should sell asap before the Fed raises rates?

;)
 

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