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Strategies & Market Trends : Value Investing

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To: Spekulatius who wrote (32798)11/18/2008 11:11:05 PM
From: E_K_S   of 78702
 
Hi Spekulatius - I have found that the commissions are quite high through Schwab to trade individual corporate bonds unless you buy $50K or more of the issue. The bond desk also make their money on the bid/ask spread which are typically at the high end (ie 5%) again on large orders they may split the middle.

You might look at individual preferred shares as I did quite well with a hybrid preferred offering that had a guaranteed payoff after two years. They were 7.5% Albertson preferred shares which were paid at the coupon value early when the Super Value acquisition was announced.

If you find anything interesting, update the thread as I am also interested in value priced (but low risk) corporate debt. My credit union pays a pretty good rate at 3.5% but the majority of my fixed income is held in the Vanguard GNMA.

EKS
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