How to buy a corporate bond or marketable CD in the secondary market.

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guitar212man
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How to buy a corporate bond or marketable CD in the secondary market.

Post by guitar212man »

I want to buy a bond or marketable CD in the secondary market. How do I do it? How do I find what to buy? How do I buy it? How can I see the prospectus of what I am buying?
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Tyler Aspect
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Re: How to buy a corporate bond or marketable CD in the secondary market.

Post by Tyler Aspect »

Ishares sells ETFs that consists of a basket of corporate bonds.

Brokered CDs are available from Vanguard or Fidelity brokerages.

https://www.ishares.com/us/strategies/b ... nd-ladders
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markjk
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Re: How to buy a corporate bond or marketable CD in the secondary market.

Post by markjk »

Brokerages like Vanguard, Fidelity, etc. offer the ability to buy new issue or secondary market bonds, CD, treasuries, etc.
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guitar212man
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Re: How to buy a corporate bond or marketable CD in the secondary market.

Post by guitar212man »

I don't want to buy an ETF. I want to buy a brokered CD or corporate bond on the secondary market. How can I find on fidelity or vanguard or elsewhere what is available to be bought?

In other words, can you give me a step by step. How do I find what is being sold? How do I get the prospectuses? Just saying fidelity sells it leaves me with no idea what I do next.
camsaw
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Re: How to buy a corporate bond or marketable CD in the secondary market.

Post by camsaw »

Sign on to your Fidelity account, go to "News and Research" tab, scroll down to "Fixed Income", then select either "bond" tab or "CDs and ladders tab". Hope this helps.
alex_686
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Re: How to buy a corporate bond or marketable CD in the secondary market.

Post by alex_686 »

Bonds and CDs trade over the counter. i.e. from one broker to another, not publicly on a exchange.

Most brokers keep a inventory that they are willing to sell and will post them on their website. If you want a specific bond you will need to call them up so they can hunt for them. The website should have a link to walk you through the exact steps. Everybody handles it differently.

That being said I would mildly discourage buying individual bonds or CDs. There are exceptions for Treasuries, the case when you know the specific date you will need the cash, or you have a couple of million to invest. Otherwise you are much better off with a fund.

For context I work in a adjacent space.
Former brokerage operations & mutual fund accountant. I hate risk, which is why I study and embrace it.
jjj_22
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Re: How to buy a corporate bond or marketable CD in the secondary market.

Post by jjj_22 »

Fideilty: "Accounts and Trade" menu, select "Trade", select "Fixed Income", click "Search Inventory", click on the "Corporate" tab, do a search and in the search results there's a little "buy" button.
invest2bfree
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Re: How to buy a corporate bond or marketable CD in the secondary market.

Post by invest2bfree »

guitar212man wrote: Mon Oct 03, 2022 10:45 pm I want to buy a bond or marketable CD in the secondary market. How do I do it? How do I find what to buy? How do I buy it? How can I see the prospectus of what I am buying?
Fidelity, interface is very easy to use.

Prospectus is listed along with the listing.

One word of warning, you will not get the best price. It is not a stock and liquidity is low especially for corporate bonds.

If you are holding for many years then it should not matter.
36% (IRA) - Individual LT Corporate Bonds , 33%(taxable) - schy, 33%(taxable) - SCHD Dividend Growth
ModifiedDuration
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Re: How to buy a corporate bond or marketable CD in the secondary market.

Post by ModifiedDuration »

jjj_22 wrote: Thu Oct 06, 2022 9:34 am Fideilty: "Accounts and Trade" menu, select "Trade", select "Fixed Income", click "Search Inventory", click on the "Corporate" tab, do a search and in the search results there's a little "buy" button.
+1
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starboi
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Re: How to buy a corporate bond or marketable CD in the secondary market.

Post by starboi »

FYI Capital One is offering a 4.5% five year CD through Fido.
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