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Hi,

While searching for options to park non-emergency cash, I came across GE Interest Plus corporate notes that offers an above-market (vs. CD, bank accounts) yield and an attractive liquidity. Does anyone here have experience / opinions about investing in corporate notes? I was unable to find any other company offering these directly to investors, so couldn't compare with other options.

Thanks.
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No. of Recommendations: 2
I'm guessing that 15-20 companies periodically issue new notes targeted to income investors. Caterpillar is one name, and there are others.
The key word is "periodically". So supply isn't constant.

Generally, buying new notes is not a good idea due to the embedded underwriters fees. Instead, let the bonds season and then buy them at a discount in the secondary market.

Unless the note is FDIC insured --some are-- by buying the note you are NOT parking cash. You are investing cash. The risk to principal might be minor, but you should be aware that it is there. (That's why yields are what they are.)

With that in mind, shop very aggressively for price, which can vary widely even on the same bond within the same day.
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