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Bonds: Why you should invest in short-term bonds over longer-term securities.
"2-yr FRN Auction is tomorrow, Wednesday, 8/23/23. FRNs pay 3m yield + spread (+12.5 bps expected tomorrow)" @yogibearbull : I looked at Vanguard & Schwab & couldn't find the above offering. Pre schedule shows an R & I think that is for a reopening. Would one have to add cuspid # in order to buy ?
@Derf, At Schwab online, look for 1 yr, 11 mo Notes and check the CUSIP 91282CHS3 (it's a reopening of the last month's new issue FRN). The "FRN" name is not used by Schwab.
You have to call Fido fixed-income desk for FRN Auctions.
I just checked Schwab Treasury Auction list. It includes:
Buy US Treasury VAR 07/31/2025 08/23/2023 07/31/2025 1 year, 11 months, 9 days from today (Buy Order will be entered for next business day)
A click on Buy brings up the Order screen with CUSIP 91282CHS3 prefilled. Order cutoff time is 10:30am Eastern tomorrow, 8/23/23. I didn't test beyond that as I had entered my order already on last Thursday (now shown as pending) and I don't want any duplicate orders.
I also checked with CUSIP search box on Fixed-Income Offerings page and it finds CUSIP 91282CHS3. Schwab general search box doesn't find it.
Charles says , "This functionality is not available now. For assistance, please call a Charles Schwab Fixed Income Specialist at 800-626-4600 between 8:30 a.m. and 6:00 p.m. ET or try again later. Have a good evening , Derf
It is very very rare on these threads, to see specifics about how much you are investing. So you hear these very detailed discussions about buying, but nothing about the extent of buying. I am an investor who does not have a large number of positions. I prefer to have larger, but fewer positions, in my portfolio. When I was investing in Bonds before March 2022, it was typical for me to own 10 or fewer positions, with my smallest position being in 6 figures. Even now in my CD world, 6 figures is my typical minimum.
So, this is a long winded way of stating, that it would be helpful to know how large of a treasury position, a bond oef position, ETF or CEF position, you are referring to when you state you made a purchase, or own a position. I know FD's investing style, and he talks about his successful performance, but he only invests in 5 or less positions in his portfolio, and each position is often larger than the entire portfolio of most posters, in talking about their purchases. I also know Yogi somewhat, but I have the impression that his purchases are part of a portfolio, with very large number of smaller bond positions. So, understand not only what they are discussing and purchasing, but also how much they are investing.
@dtconroe I would post % of portfolio invested, but not $$$$ (amount) !
I was able to make a small 1.5% purchase in IRA of T-note mentioned above. That was all of the cash I had available in that account at Schwab. I then turned to Vanguard to up the ante to make a larger purchase of 3.5% so it would be a 5% holding. Unfortunately I wasn't able to make the purchase. If anyone was able to purchase 91282chs at Vanguard would you please reply. I might have over looked a back door approach. Thanks, Derf
@dtconroe I would post % of portfolio invested, but not $$$$ (amount) !
I was able to make a small 1.5% purchase in IRA of T-note mentioned above. That was all of the cash I had available in that account at Schwab. I then turned to Vanguard to up the ante to make a larger purchase of 3.5% so it would be a 5% holding. Unfortunately I wasn't able to make the purchase. If anyone was able to purchase 91282chs at Vanguard would you please reply. I might have over looked a back door approach. Thanks, Derf
Derf, I understand and that is everyone's choice. In "most" investor/posters world, a purchase of 5% or less, is more typical, but that is much different than an investor/poster, who is willing to make initial purchases in the 10%+ and 6 figure world. I know several prominent posters, whose portfolios contain 40, 50, or more funds, whose largest position is 5% or less. If you are just nibbling around the edges with small purchases, that is much different than making a much larger purchase with much larger risk. Any additional details about a purchase, helps to clarify how well that would impact another posters decision to emulate a posted purchase decision.
why would you be against posting % amount? if you're going to post about purchases at all, wouldn't it make sense to also indicate level of conviction via %? otherwise, it could be anything from a massive timber amount to a shivering leaf's worth and that difference could and should be significant to readers.
It is very very rare on these threads, to see specifics about how much you are investing. So you hear these very detailed discussions about buying, but nothing about the extent of buying. I am an investor who does not have a large number of positions. I prefer to have larger, but fewer positions, in my portfolio. When I was investing in Bonds before March 2022, it was typical for me to own 10 or fewer positions, with my smallest position being in 6 figures. Even now in my CD world, 6 figures is my typical minimum.
So, this is a long winded way of stating, that it would be helpful to know how large of a treasury position, a bond oef position, ETF or CEF position, you are referring to when you state you made a purchase, or own a position. I know FD's investing style, and he talks about his successful performance, but he only invests in 5 or less positions in his portfolio, and each position is often larger than the entire portfolio of most posters, in talking about their purchases. I also know Yogi somewhat, but I have the impression that his purchases are part of a portfolio, with very large number of smaller bond positions. So, understand not only what they are discussing and purchasing, but also how much they are investing.
+1 Since 2017, I have been in only 2-3 funds, right now 2 funds. I stopped investing an equal % in each fund over 10 years ago, a typical position is in the 7 figure.
I believe that the OPs are entitled to present and hold their viewpoints in their OPs. So, after responding to specific questions and tags HERE, I am out of here.
My investing style is fundamentally different, but people know where to find that information.
I provide information for others to use. Posters are free to use it or not. I am not into showboating.
My post(s) on FRN purchase details on THIS thread were in response to specific questions from posters.
BTW, I had already started an OP on FRNs several days ago that had general info and has been posted elsewhere too.
"Showboating"? It is not about "showboating", it is about providing clarifying information to other posters, to better explain your posts about investing in a particular fund. If you own 50 funds, and you open a small, almost token position, of 1 or 2%, that is very different than a poster who owns no more than 10 funds, with a 10 to 20%+ position in each fund, taking on more significant risk.
I used to post % of investment. Since everyone financial situation and risk tolerance differ, I am not sure how the investment % would help. Otherwise, these information could potentially be misleading and not constructive. Besides MFO premium has been a wonderful tool for my own research.
Comments
You have to call Fido fixed-income desk for FRN Auctions.
Don't know about availability at Vanguard.
Buy US Treasury VAR 07/31/2025 08/23/2023 07/31/2025 1 year, 11 months, 9 days from today
(Buy Order will be entered for next business day)
A click on Buy brings up the Order screen with CUSIP 91282CHS3 prefilled. Order cutoff time is 10:30am Eastern tomorrow, 8/23/23. I didn't test beyond that as I had entered my order already on last Thursday (now shown as pending) and I don't want any duplicate orders.
I also checked with CUSIP search box on Fixed-Income Offerings page and it finds CUSIP 91282CHS3. Schwab general search box doesn't find it.
Have a good evening , Derf
If I go to: https://client.schwab.com/Areas/Trade/FixedIncomeSearch/FISearch.aspx/Treasuries
I wind up on the "Find Bonds & Fixed Income" page,
and then in the Or Search by CUSIP box I enter: 91282CHS3
I get this Search Result:
S&P Moody's
Rating Rating Description Coupon Maturity Callable
NR Aaa US Treasury Bills 5.466 07/31/2025 No
91282CHS3
... and this note: "Currently Not Available"
I finally did get to a page that did show, as you said: VAR 07/31/2025 08/23/2023 07/31/2025
and by using "Buy" I was able to enter an order. Thanks for your help on this.
So, this is a long winded way of stating, that it would be helpful to know how large of a treasury position, a bond oef position, ETF or CEF position, you are referring to when you state you made a purchase, or own a position. I know FD's investing style, and he talks about his successful performance, but he only invests in 5 or less positions in his portfolio, and each position is often larger than the entire portfolio of most posters, in talking about their purchases. I also know Yogi somewhat, but I have the impression that his purchases are part of a portfolio, with very large number of smaller bond positions. So, understand not only what they are discussing and purchasing, but also how much they are investing.
I was able to make a small 1.5% purchase in IRA of T-note mentioned above. That was all of the cash I had available in that account at Schwab. I then turned to Vanguard to up the ante to make a larger purchase of 3.5% so it would be a 5% holding. Unfortunately I wasn't able to make the purchase. If anyone was able to purchase 91282chs at Vanguard would you please reply. I might have over looked a back door approach.
Thanks, Derf
I provide information for others to use. Posters are free to use it or not. I am not into showboating.
My post(s) on FRN purchase details on THIS thread were in response to specific questions from posters.
BTW, I had already started an OP on FRNs several days ago that had general info and has been posted elsewhere too.
Since 2017, I have been in only 2-3 funds, right now 2 funds. I stopped investing an equal % in each fund over 10 years ago, a typical position is in the 7 figure.
My investing style is fundamentally different, but people know where to find that information.
How often have I said I throw nickles around like they were man hole covers?