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Seeking alternatives to two bond funds



 
 
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  #1  
Old October 16th 03, 03:15 AM
Mark Freeland
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Posts: n/a
Default Seeking alternatives to two bond funds

"Caliban" wrote in message
ink.net...
"Mark Freeland" wrote
C wrote
Dunno if it's fair to say it's a "small" set of bonds that's being

issued.

An offering of 45 bonds is not a small set of bonds? Remember, we're
talking about the 6.75% bonds you suggested, not the Smart Note 6.65%
bonds we were supposed to guess you had in mind. There are 99459 of
those offered.


45 and 99459 come from where?


In theory, one can go to any site that lists corporate new issues. Here's a
Barron's article from a year ago talking about the online bond trading, that
will give you a start: http://www.cdfa.net/cdfa/press.nsf/pages/393

I use bondsonline.com (go to corporate bonds search on the left, and then in
the center panel, you'll find a "New Issue Taxable" button). You'll need to
sign up for the service, but it's free.

The numbers have shifted downward since I posted (which I suppose is
expected). In particular, the 45 unit offering has vanished (the SmartNote
offering is down to 83982 bonds, a much larger drop).

Mark Freeland




  #2  
Old October 16th 03, 03:15 AM
Mark Freeland
external usenet poster
 
Posts: n/a
Default

"Caliban" wrote in message
ink.net...
"Mark Freeland" wrote
C wrote
Dunno if it's fair to say it's a "small" set of bonds that's being

issued.

An offering of 45 bonds is not a small set of bonds? Remember, we're
talking about the 6.75% bonds you suggested, not the Smart Note 6.65%
bonds we were supposed to guess you had in mind. There are 99459 of
those offered.


45 and 99459 come from where?


In theory, one can go to any site that lists corporate new issues. Here's a
Barron's article from a year ago talking about the online bond trading, that
will give you a start: http://www.cdfa.net/cdfa/press.nsf/pages/393

I use bondsonline.com (go to corporate bonds search on the left, and then in
the center panel, you'll find a "New Issue Taxable" button). You'll need to
sign up for the service, but it's free.

The numbers have shifted downward since I posted (which I suppose is
expected). In particular, the 45 unit offering has vanished (the SmartNote
offering is down to 83982 bonds, a much larger drop).

Mark Freeland




  #3  
Old October 16th 03, 03:15 AM
Mark Freeland
external usenet poster
 
Posts: n/a
Default

"Caliban" wrote in message
ink.net...
"Mark Freeland" wrote
C wrote
Dunno if it's fair to say it's a "small" set of bonds that's being

issued.

An offering of 45 bonds is not a small set of bonds? Remember, we're
talking about the 6.75% bonds you suggested, not the Smart Note 6.65%
bonds we were supposed to guess you had in mind. There are 99459 of
those offered.


45 and 99459 come from where?


In theory, one can go to any site that lists corporate new issues. Here's a
Barron's article from a year ago talking about the online bond trading, that
will give you a start: http://www.cdfa.net/cdfa/press.nsf/pages/393

I use bondsonline.com (go to corporate bonds search on the left, and then in
the center panel, you'll find a "New Issue Taxable" button). You'll need to
sign up for the service, but it's free.

The numbers have shifted downward since I posted (which I suppose is
expected). In particular, the 45 unit offering has vanished (the SmartNote
offering is down to 83982 bonds, a much larger drop).

Mark Freeland




  #4  
Old October 18th 03, 04:59 AM
Mark0Young
external usenet poster
 
Posts: n/a
Default

In article ,
(Mark Freeland) writes:

So don't count on 4.66% for more than 1/2 month.


Just to clarify: one has less than 1/2 month to buy I-Bonds at the current
rate; any I-Bond purchased with an issue date of October 2003 will continue
having the 4.66% rate for six months.

Only I-Bonds issued in May or November will actually change rates that May or
November, all other I-Bonds will change on their six-month "anniversary" of
their issue date to reflect the CPI-U component on the immediately preceding
May 1 or November 1.

The interest rate of I-Bonds (Series I Savings Bonds) have two components:

The fixed rate component is fixed for the life of the I-Bond (until the I-Bond
is redeemed or reaches final maturity in 30 years from month of issue,
whichever occurs first). Each May and November the fixed rate component is
announced for I-Bonds that will be issued that month or in the next 5
months--it affects only new I-Bonds. Right now the fixed rate component is only
1.10%, so buying an I-Bond in October to have an October 1 release date will
have a 1.10% fixed rate component for the life of that I-Bond.

The CPI-U component is likewise announced every May and November. This is the
"inflation" component, and all I-Bonds will get that new inflation component on
their six-month "anniversary" unless, of course, they are redeemed or reach
final maturity before that 6-month "anniversary".

For more information, visit the I-Bond Information Page at
http://www.publicdebt.treas.gov/sav/sbiinvst.htm

Mark A. Young
  #5  
Old October 18th 03, 04:59 AM
Mark0Young
external usenet poster
 
Posts: n/a
Default

In article ,
(Mark Freeland) writes:

So don't count on 4.66% for more than 1/2 month.


Just to clarify: one has less than 1/2 month to buy I-Bonds at the current
rate; any I-Bond purchased with an issue date of October 2003 will continue
having the 4.66% rate for six months.

Only I-Bonds issued in May or November will actually change rates that May or
November, all other I-Bonds will change on their six-month "anniversary" of
their issue date to reflect the CPI-U component on the immediately preceding
May 1 or November 1.

The interest rate of I-Bonds (Series I Savings Bonds) have two components:

The fixed rate component is fixed for the life of the I-Bond (until the I-Bond
is redeemed or reaches final maturity in 30 years from month of issue,
whichever occurs first). Each May and November the fixed rate component is
announced for I-Bonds that will be issued that month or in the next 5
months--it affects only new I-Bonds. Right now the fixed rate component is only
1.10%, so buying an I-Bond in October to have an October 1 release date will
have a 1.10% fixed rate component for the life of that I-Bond.

The CPI-U component is likewise announced every May and November. This is the
"inflation" component, and all I-Bonds will get that new inflation component on
their six-month "anniversary" unless, of course, they are redeemed or reach
final maturity before that 6-month "anniversary".

For more information, visit the I-Bond Information Page at
http://www.publicdebt.treas.gov/sav/sbiinvst.htm

Mark A. Young
  #6  
Old October 18th 03, 04:59 AM
Mark0Young
external usenet poster
 
Posts: n/a
Default

In article ,
(Mark Freeland) writes:

So don't count on 4.66% for more than 1/2 month.


Just to clarify: one has less than 1/2 month to buy I-Bonds at the current
rate; any I-Bond purchased with an issue date of October 2003 will continue
having the 4.66% rate for six months.

Only I-Bonds issued in May or November will actually change rates that May or
November, all other I-Bonds will change on their six-month "anniversary" of
their issue date to reflect the CPI-U component on the immediately preceding
May 1 or November 1.

The interest rate of I-Bonds (Series I Savings Bonds) have two components:

The fixed rate component is fixed for the life of the I-Bond (until the I-Bond
is redeemed or reaches final maturity in 30 years from month of issue,
whichever occurs first). Each May and November the fixed rate component is
announced for I-Bonds that will be issued that month or in the next 5
months--it affects only new I-Bonds. Right now the fixed rate component is only
1.10%, so buying an I-Bond in October to have an October 1 release date will
have a 1.10% fixed rate component for the life of that I-Bond.

The CPI-U component is likewise announced every May and November. This is the
"inflation" component, and all I-Bonds will get that new inflation component on
their six-month "anniversary" unless, of course, they are redeemed or reach
final maturity before that 6-month "anniversary".

For more information, visit the I-Bond Information Page at
http://www.publicdebt.treas.gov/sav/sbiinvst.htm

Mark A. Young
  #10  
Old October 18th 03, 03:57 PM
Caliban
external usenet poster
 
Posts: n/a
Default

"Mark Freeland" wrote
"Caliban" wrote
"Mark Freeland" wrote
C wrote
Dunno if it's fair to say it's a "small" set of bonds that's being

issued.

An offering of 45 bonds is not a small set of bonds? Remember, we're
talking about the 6.75% bonds you suggested, not the Smart Note 6.65%
bonds we were supposed to guess you had in mind. There are 99459 of
those offered.


45 and 99459 come from where?


In theory, one can go to any site that lists corporate new issues.


I don't see the number of issues at the Fidelity site.

Aside: I rarely get very far on bond searches at the Fidelity site before it
asks me for my ID and password. You may need an account with Fidelity to use the
site to full advantage when it comes to bonds, among other things.

Here's a
Barron's article from a year ago talking about the online bond trading, that
will give you a start: http://www.cdfa.net/cdfa/press.nsf/pages/393

I use bondsonline.com (go to corporate bonds search on the left, and then in
the center panel, you'll find a "New Issue Taxable" button). You'll need to
sign up for the service, but it's free.

The numbers have shifted downward since I posted (which I suppose is
expected). In particular, the 45 unit offering has vanished (the SmartNote
offering is down to 83982 bonds, a much larger drop).


Are you sure a GMAC bond note offering of only 45 even existed? Could it be that
what you were seeing was the tail end of an offer period? I get the feeling you
were unaware that General Motors had new issues every few weeks. In fact, the
latest 15-year issue is for 6.8% (ratings still Moody A3 and S&P BBB), good
until this Thursday. But no big deal.

Also, I want to emphasize that I mentioned the GM bonds off the top of my head
only as one example. There are other new issue bonds that one could consider.
E.g. current new issues with 15 year maturities, from the Fidelity site:

Caterpillar, A2 & A, 5.55%
United Parcel Service, AAA & AAA, 5.15%
Freddie Mac, AAA & AAA, 5.25%
John Hancock, A1 & AA, 5.75%

There are more.


 




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