No. of Recommendations: 5
This morning, I again got price-improvements at E*Trade.

The first one went like this. IB was showing the bond price at 87.500, but E*Trade and Zions were showing 87.000. When I tried to execute through IB, I got no response (probably because I wanted less than a marketable size). So I canceled out. Then I tried to execute though Zions. But they pennied me back at 87.414. So, again, I canceled and jumped over to E*Trade. However, they pennied me back even worse at 87.500. But I wanted the bonds and covering the trade (I was buying on margin) would be easier through E*Trade, so I accepted. Meanwhile, the Ask bumped up to 87.375. But when the confirm came through, I had been filled at 87.207. That’s only a savings of a couple bucks. But in the bond game, every penny matters.

The second price-improvement went like this. The offer was 72x50, min five. I didn’t want to go five, but I had never seen the issuer’s bonds offered out before, and cash was piling up on me again, with two more calls coming next week. So I wrote the order. But when the confirm came though, it said I had been filled at 71.950. A quick check at IB showed that’s where the market now was. So, once again, E*Trade did me right. Then I covered both purchases through cash-transfers from linked banks account.

E*Trade continues to prove itself to be an excellent bond broker. They are aggressive about providing inventory to their customers, and they are as good as anyone about the fills they give.
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