Well, my survey went faster than I expected, and the results are what I should have expected. The bond market is a $%@in’ mess. Brokers do exactly as they please, the customer be damned. But here’s some concrete examples. -I’ve already established that Fido (this morning, who knows what things will be like tomorrow?) is quoting Delaize lower than ET. -When I asked for quotes on Ultrapetrol, I got the same prices, but different minimum required purchases. F, 80(5) ET, 80(2). -When I asked for ShopKo, Fido wouldn’t quote. -When I asked for Venoco, Fido quoted two issues, ET only one. But on what ET quoted, they were a point lower than Fidelity. It’s chaos. $@#^in’ chaos. But this seems to be the pattern. Although there are exceptions, in general, E*Trade (and Zions Direct) quote a wider inventory than anyone else, and generally, at least in the past, E*Trade and Zions could be counted on to quote the inside market, meaning, you weren’t going to find a lower ask unless a broker was holding a small lot in-house and had priced it to move fast. But even just the quick poking around I did suggests that if you truly want the best price and/or the smallest minimum, you gotta shop around. OTOH, I will say this. In adversity, there is opportunity. The more obstacles there are, the easier it will be for a determined buyer to gain a small edge over his/her competitors. A point here, a point there might not seem like much. But the bond game is nothing if not a fight for every basis point you can grab. So executing at the best prices contributes to the difference between merely average returns and possibly superior ones.
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates, Analyst Ra