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Subject:  Running a Basic Bond Scan Date:  12/28/2012  11:53 AM
Author:  globalist2013 Number:  34582 of 35930

With Congress dithering over matters that will affect all investors hugely, and with only two more market days remaining in 2012, I’m not likely to do any buying today. But that doesn’t mean I’m not shopping. I shop every day --meaning, I look for buying opportunities every day-- because that’s what a bond investor does. In a timely and consistent, persistent manner, he/she looks to see what is being offered. The easiest way to get a fast look at where bond prices are is to run a scan. So let’s set up and run a very simple one.

Open up your brokerage account and ask to be shown all bonds of any rating or maturity offering a YTM of 5% of better, and ask that the list be sorted first by issuer and then by maturity. If you’re using a broker who quotes the whole of the corporate market, then you’ll be returned just two pages, or less than 1,000 bonds, which is a reasonable number to look at. Then scroll through the list, top to bottom (or bottom to top). If you ran this same scan yesterday (and the day before and the day before that), you’ll recall seeing many of the same names and similar prices, and pricing anomalies will become easy to spot or, maybe, an issuer or maturity will show up that wasn’t there before. Jot down those names, and then continue scrolling through the list, A to Z (or Z to A, just to break up your routine). Probably you’ll end up with just five or six names, which isn’t an overwhelming number to research further.

But let’s say