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URL:  https://boards.fool.com/blacktree-that39s-quotcombat-fishingquot-34508012.aspx

Subject:  Re: who is best broker now for small bond amount Date:  5/16/2020  2:56 PM
Author:  Arindam Number:  36785 of 36836

Blacktree,

That's "combat fishing" and something I've never seen, though my ex-Alaska neighbor reports he's done a bit of it. These days also, due to a disabling back injury, my days of hiking into deep canyons and wading waters almost no one ever fishes are over. I had wanted to launch a pram and hit the spring crappie bite. But 'shelter-in-place' has kept me home, as has dealing with current markets.

Totally crazy stuff is going on that has turned 'investing' --in the customary sense of that word-- into the worst kind of high-risk gambling. Short-term trading, OTOH, like holding-periods of no more than 13 minutes, is making a lot of sense. The money is good, and the opportunities are plentiful.

But back to your original question about buying small lots of bonds. As you know, there is no 'bond market', but networks of underlying decks that the brokers re-quote from (plus --occasionally-- their own in-house inventory). Each desk sets its own price and purchase mins. But only the lot with the lowest price is quoted NBBO. That might require a min of 10 or 25 or 100, whereas you might want just 2.

However, if you pull the book --aka, the order queue-- you can often find a desk offering a smaller sized lot, albeit at a higher price. Often enough, the price is just pennies more and not an impediment, especially if the broker with the lowest commish will do the trade for you.

You do know that FINRA offers historical bond data, as well as charts of how a bond has traded? Very, very useful for estimating over-bought/over-sold.

Arindam
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