I picked up some Charles Schwab notes

Discussion in 'Fixed Income' started by TimtheEnchanter, Jul 11, 2023.

  1. kmiklas

    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.

    schwab-bond-thing.png
     
    Last edited: Jul 12, 2023
    #31     Jul 12, 2023
  2. newwurldmn

    newwurldmn

    so you don't understand time value of money.
     
    #32     Jul 12, 2023
  3. mervyn

    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.
     
    #33     Jul 12, 2023
  4. BMK

    BMK

    All secondary market.

    I have attached an updated sheet that includes the purchase date and the purchase price.
     
    #34     Jul 12, 2023
  5. kmiklas

    kmiklas

    Thanks.
     
    #35     Jul 12, 2023
  6. M.W.

    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.

     
    #36     Jul 12, 2023
  7. nitrene

    nitrene

    Good timing on the trade. I assume the Schwab notes must have skyrocketed yesterday?
     
    #37     Jul 19, 2023