How To Buy 6.2% Agency Bonds On Schwab 2024
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- Опубліковано 25 вер 2024
- A step by step tutorial of buying agency bonds on charles schwab. Also talk about the pros and cons of an agency bond and what they are.
DISCLAIMER
-All of the content found in this video is for ENTERTAINMENT purposes only. We are NOT financial advisors and are not responsible for any losses in your personal investing experience.
Excellent video! I look at these on Schwab everyday. I write down the highest yielding for near term calls, year out calls, 2 years and 3. They really vary day to day. After a few days you get a good feel for what’s a good deal. Then one will stick out like a sore thumb and scream “good deal here!”
Good strategy! Thanks for watching!
Heads up here, the host is correct in his assumptions. Ive been purchasing these bonds in large increments throughout the last year. They have ALWAYS been called in full at their first date available to do so. Better off buying a slightly lesser yield corporate bond with call dates further out at this point in the cycle
Thanks for the confirmation! None that I have purchased have reached their call date yet, but I assumed it would likely be on the first call most times.
Yes and a word of caution the Yield to Worst (YTW) and Yield to call (YTC) is based on the settlement date. I bought a bond in late April at 6.5% that had a YTC of 6.5% and YTW of 6.5% however it got called effective June 7th and it must have been a new issue as it didn’t settle until mid May. So they had my money for 6 weeks and only paying me 2 weeks interest so more like 2.5% instead of 6.5%.
Can I buy Freddie Mac on Charles Schwab?
Any risk losing money with these bonds?
There is always a risk of default with bonds, though very small. Some agency bonds are backed by the US Government and some are not, that is explained more thoroughly in our previous agency bonds video. Thanks for watching!
"a little more uncertainty as to when you will get money your back" 6 "if you have cash around that you don't really need right now and you don't care when it will be returned"... what a way to start off. lol
Trying to keep it realistic for y’all. That’s very much what you’re getting into with agency bonds but in some situations it’s well worth it! Thanks for watching!
@@FatherNSonInvesting agreed. Thanks