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Subject:  A Fast Fill Date:  12/21/2012  1:39 PM
Author:  globalist2013 Number:  34574 of 35803

My preference for buying bonds (and, especially, for selling them) is to execute through IB where commissions for small lots are the cheapest ($1/bond, $5/ticket) and the buy/sell process is straight-forward. But IB doesn’t quote as widely as E*Trade or Zions Direct, nor is their search-engine as easy to use. So I end up executing where I have to.

As I ran my usual scans this morning, an offering I hadn’t seen before showed up. So I went into high gear, pulling charts, calculating numbers, making judgments, and I concluded I should take a position. “How much?” was the next question. The min-purchase was bigger than I wanted to accept. I could afford it in the sense of having enough cash to do the trade. But since this was an issuer I hadn’t already been tracking, I wanted to dip a toe rather than jump in. Instead of putting on what would ultimately be my final position if the market were to confirm that my entry had been correct, I wanted to put on no more than half a position initially, and a quarter would be preferable. Smaller lots were available in the book if I’d be willing to pay up. So I re-ran my numbers to confirm that the price increase wouldn’t have an excessively negative impact. (I.e., things like calls have to be considered.)