Why didn't my bond order fill?

kmiklas

kmiklas

I placed a 100k order for a corporate JPM bond at about 1pm and it didn't fill.

I crossed the spread and took the offer, so it wasn't a pricing issue.

The order just sat there for five hours.

Why didn't it fill? Some possible reasons:

1. The spread was very tight. I hate big spreads, and so picked a bond with a tight spread.
2. Low dollar amount. Most of these bonds trade in the millions, if not more.
3. Too late in the day. Maybe I will have better luck placing in the early morning?

tyvm
 
kmiklas said:
I placed a 100k order for a corporate JPM bond at about 1pm and it didn't fill.

I crossed the spread and took the offer, so it wasn't a pricing issue.

The order just sat there for five hours.

Why didn't it fill? Some possible reasons:

1. The spread was very tight. I hate big spreads, and so picked a bond with a tight spread.
2. Low dollar amount. Most of these bonds trade in the millions, if not more.
3. Too late in the day. Maybe I will have better luck placing in the early morning?

tyvm
More...

Do you mean a JP Morgan bond? What is the yield and term structure on that corporate crap? How could it be better than the 2Y, 1year and 6-month bills? The one year peaked 5 percent, man!
 
Overnight said:
Do you mean a JP Morgan bond? What is the yield and term structure on that corporate crap? How could it be better than the 2Y, 1year and 6-month bills? The one year peaked 5 percent, man!
More...
Yield was closer to 6%, expiry in a year, semi-annual coupon.

Why buy a T-bond if I can get a highly rated corporate bond for an extra percentage point?

Let's be honest, JPM is on par with or even slightly above the US Treasury. If JPM goes under the USA is probably already in flames anyway.

It's not like I'm buying Wells Fargo...
 
Alexpung said:
Did you check the level 2 quote for the minimum order? It could be the ask require something larger than 100k
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Do you know how to do that in IB? In the bond scanner?

I finally did get my fill!
 
That same way of thinking would have caused you large losses had you bought Bear Stearns or Lehman bonds right before the crisis. The government bona repaid each and every single investor throughout and after the crisis. That's the difference. You gain a few basis points extra in yield by taking on the additional risk.

kmiklas said:
Yield was closer to 6%, expiry in a year, semi-annual coupon.

Why buy a T-bond if I can get a highly rated corporate bond for an extra percentage point?

Let's be honest, JPM is on par with or even slightly above the US Treasury. If JPM goes under the USA is probably already in flames anyway.

It's not like I'm buying Wells Fargo...
More...
 
Last edited:
M.W. said:
That same way of thinking would have caused you large losses had you bought Bear Stearns or Lehman bonds right before the crisis. Yes the government who each and every single investor throughout and after the crisis. That's the difference. You gain a few basis points extra in yield by taking on the additional risk.
More...
This is not Lehman, Bear, Wells, or even Morgan Stanley--this is JPMC!
 
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