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Investing/Strategies / Bonds & Fixed Income Investments
|Subject: Re: Schwab for Bonds||Date: 11/28/2012 6:15 PM|
|Author: Wradical||Number: 34531 of 35508|
My 401(k) account is self-directed, and I am required to use Schwab for that. For stocks, they're good and cheap, IMHO.
For bonds, they can be frustrating, as to their search function. I wouldn't look to buy below B-, normally, but I could swear I've had CCC bonds pop up in searches.
If you do buy bonds there, the prices quoted in your portfolio holdings are NOT a price you could sell for, normally. And you generally have to call and sell on the phone, as opposed to buying. The prices quoted are for large blocks.
When buying and doing math checks I generally find that their YTM and YTC and YTW numbers are pretty good. More often than not, my initial calcs. were off. Or else there's something odd, like an odd call provision.
Yes, they mark up. They're in business to make money, too. I figure, I'm not a trader. I buy a bond and plan to hold to maturity. I don't buy unless the YTM or YTW is acceptable. If Schwab makes some money on the transaction too, well, I'd be surprised if they didn't.
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