bond question

delforza · Newbie Joined: 04 Oct 2011 Posts: 3

Hi All,
one question about bond buying:
say I want to buy CUSIP 617446HC6.
The bond is "Make Whole Call Only".
What does it mean that yield to worst is "N/A"?
Also why is yield so much higher then comparable bonds?

delforza · Newbie Joined: 04 Oct 2011 Posts: 3

very helpful. thanks!

rffrydr · Posted: Wed Oct 05, 2011 8:58 am Post subject:

There's no "price" quote for bonds outside their CDS market...which is why we walked right into that derivative. You'll a get a range of prices over a range of quantities with a certain, 30min or so, of time to make your decision. I have no problems with E-trade which beefed up their platform with the trend in retail. I'm sure the others have followed and there has probably never been a better time for little to access the bond market. Don't worry if the quantities posted are too large (there's a $million block quote standard) and it's the one place you can still get telephone service as your order is going to the desk anyway.

Watch out for illiquidity, some bonds don't trade for days, even weeks, so the price quote might give you a freak.
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delforza · Newbie Joined: 04 Oct 2011 Posts: 3

thanks! what is a good online platform to buy/sell bonds?

rffrydr · Posted: Tue Oct 04, 2011 2:54 pm Post subject:

Morgan Stanley, yielding 5% to 2012...nothing super-high about that in this market. You gotta swallow the whole offer during the window of time you are allotted. Try just putting in an order in round $1000 increments of what you want.
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Today is the Tomorrow you worried about Yesterday!