How do you handle your coupon payments? Not sure what to do with these bits of ca$h that get paid out. I try to aggregate them into other coupon and maturity payments until I can compound into another bond buy, but I find them sitting in my sweep account in the mean time. I aim for 10K minimum. Assuming a $20 fee, the penalty is 0.2% off the yield. (20/10000). To buy anything less takes a chunk out of the yield when fees and transaction costs are factored in... No sense in paying $20 to buy $1K T instrument; I'm down 2% out of the gate. The best I've found are IB and Marcus... rates a/o 2023-05-11 are as follows; These rates change based on market conditions, but I'd imagine the spread will stay proportional: 4.58% - IB sweep account. [1] 4.15% - Marcus savings account. [2] So I've been keeping them in my sweep account until I can aggregate and lend at a higher rate. Any suggestions are welcome. Thanks, Keith Non-professional - not licensed - opinion only 1. https://www.interactivebrokers.com/en/accounts/fees/pricing-interest-rates.php 2. https://www.marcus.com/us/en/savings/high-yield-savings
what an amateur thing say lol high yield savings or money market funds are your best bet until you can buy more bills/notes/bonds.
How about bidding noncomp in Treasury Bill auctions with your broker ? So the securities stay in your account.