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Author: ericjp1 One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35357  
Subject: Can Individual Investors buy Corporate Bonds?? Date: 10/3/2001 12:49 AM
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How does an individual investor go about buying Corporate bonds? I found one broker online, but they require a minimum balance of $25,000. Is there anyway for someone to open an account for any less ($5000-$10000)? Any help would be greatly appreciated!!

Thanks,

-- Eric
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Author: foobar73 Big red star, 1000 posts Feste Award Nominee! Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2171 of 35357
Subject: Re: Can Individual Investors buy Corporate Bonds Date: 10/3/2001 1:42 AM
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How does an individual investor go about buying Corporate bonds? I found one broker online, but they require a minimum balance of $25,000. Is there anyway for someone to open an account for any less ($5000-$10000)? Any help would be greatly appreciated!!

TD Waterhouse offers bond trading, including coporates. You can open a new account with $2000, I believe. Some issues have minimum purchase requirements beyond this, though ($5000 face value, typically).

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Author: pauleckler Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2172 of 35357
Subject: Re: Can Individual Investors buy Corporate Bonds Date: 10/3/2001 10:10 AM
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Numerous full service brokers in your area would also be willing to help you make a $5000+ purchase of corporate bonds.

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Author: Crosenfield Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2173 of 35357
Subject: Re: Can Individual Investors buy Corporate Bonds Date: 10/3/2001 11:08 AM
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Corporate bonds are normally issued in $1000 denominations.
Municipal bonds are normally issued in $5000 denominations.
You can buy one corporate bond for around $1000.
With bonds, unlike stocks, there is not the advantage in using a discount broker. A full service broker will have a greater selection because you are not limited to exchange-listed bonds. Most corporate bonds are not exchange-listed.
If you hold a corporate bond to maturity, which you should, many discount brokers will charge you a second commission. The full service
brokers do not do that--the full face simply goes into your account.
Best wishes, Chris

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Author: imcharliehm Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2196 of 35357
Subject: Re: Can Individual Investors buy Corporate Bonds Date: 10/5/2001 11:08 PM
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If you're looking for an online bond broker and bonds rated less than investment grade, E*Trade is easy to deal with, IMHO. No matter who you choose, be aware that prices are at the high end of the cycle.

Also, be sure you buy your bonds the same careful way you buy the stocks you intend to hold as investments (rather than those for quick trades), namely with a though understanding of the company's fundamentals. Downgrades are rampent and even if your intention is to hold to maturity, serious prices declines - as opposed to normal noise - are discouraging and affect judgment.

Charlie

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