I picked up some Charles Schwab notes

[kmiklas]

@TimtheEnchanter also note the difference in spread between a comparable US Treasury bond. Schwab bond is 6½ times bigger! Personally, I hate big spreads... so much less liquid.

- Schwab bond spread: 5.910 - 5.602 = 0.308
- Treasury bond spread: 5.409 - 5.362 = 0.047

You will pay, and pay dearly, to get out of this position.

 

[newwurldmn]

you forgot the cost of money and the opportunitiy costs. if my borrowing cost is zero or opm, i'd by this darn thing.

so you don't understand time value of money.

 

[mervyn]

My final cents on this thread.

The way bond is priced, Schwab trades above vs T at ask, 98.907-97.625=1.282, coupon rate differenntial 3.55-1.5=2.05, spread is 76.8. NAIC IG Benchmanrk spread for WAL 1 year as of 6/30/23 for A- 83.12 A is 71.37, cost for insurance. So this bond is treated somewhere in between, probably less likely to default than other A- bonds under current asumption or downgrade, knock on wood. 6bps difference for the marker makers.

225 lot for sale and 100 lot on bid, it may or may not get filled on either side of the price. One would comprise in between.

For retail, it is not relevant.

 

[BMK]

I'll get back to you. I have to take a closer look. Did you purchase these at issue or on the secondary market?

All secondary market.

I have attached an updated sheet that includes the purchase date and the purchase price.

 

[kmiklas]

All secondary market.

I have attached an updated sheet that includes the purchase date and the purchase price.

Thanks.

 

[M.W.]

And your point? You claimed bonds cannot trade below par. You should stop giving people advice on fixed income instruments when you yourself don't have the slightest clue.

you are clueless, even Apple 10 year note is below par right now when the coupon is just 2%.

 

[nitrene]

Good timing on the trade. I assume the Schwab notes must have skyrocketed yesterday?