Schwab is taking me for a ride!

Discussion in 'Fixed Income' started by Cabin111, Apr 24, 2023.

  1. Cabin111

    Cabin111

    I can't think of anything more safe than short term (less than 1 year) US Treasuries. A treasury bond fund can rise and fall. Holding short term bonds to maturity is a known quality.

    It's just the manual trading (every time I have a few thousand bucks in Schwab Bank), that becomes the headache...
     
    #21     Apr 27, 2023
  2. BKR88

    BKR88

    I have CD maturities on my calendar just like my niece/nephew birthdays. :)
     
    #22     Apr 27, 2023
    krowland likes this.
  3. newwurldmn

    newwurldmn

    Etrade is requiring me to buy a 1000 bonds minimum or I have to call the bond desk for smaller size. It doesn’t feel right. That’s 1 million notional.
     
    #23     Apr 27, 2023
    destriero likes this.
  4. mervyn

    mervyn

    negative. 1 bond has a face value of 1000, you probably read it wrong, $1000 minimum.
     
    #24     Apr 27, 2023
  5. newwurldmn

    newwurldmn

    I’m going to call their bond desk next week. The site required me to buy a 1000 bonds with 1000 dollars of face value. My private client guy confirmed this but it doesn’t make sense.
     
    #25     Apr 28, 2023
  6. newwurldmn

    newwurldmn

    This is the current screen at Etrade. 300 min for some, 1000 min for others. So the first bond is quoted 25,000 (25MM notional) up but 1,000 min (1MM notional). This doesn't make sense to me:

    upload_2023-4-28_5-38-26.png

    Maybe this is a 5am thing. I will check it 10am.
     
    #26     Apr 28, 2023
  7. M.W.

    M.W.

    Their requirements change pending time of day? Funny broker...time to change brokers if there is suspicion this could be the culprit.

     
    #27     Apr 28, 2023
  8. M.W.

    M.W.

    Something about the attitude of Republicans makes me nervous going into June. Historically the US has defaulted 4 times on its debt. The odds are obviously hugely stacked against such outcome, but they are not zero and this might matter to some. That's all I am saying. I might move that closer to home for a while into a bank account that also pays a juicy return.
     
    #28     Apr 28, 2023
  9. newwurldmn

    newwurldmn

    Follow up: It looks like you were right. I was able to trade a 10 lot despite it showing 350 minimum.
     
    #29     Apr 28, 2023
  10. mervyn

    mervyn

    That's a prudent thing to do. My last t bill maturity date is 6/15, bought 65k 1 Month CD yesterday at 4.8% instead, otherwise holding cash until the issue is cleared. Also, the 4 week rate came down a lot, yesterday's 4wk auction yield was 3.89%, the lowest since January.
     
    #30     Apr 28, 2023
    M.W. likes this.