How to Buy Bonds (HOW YOU REALLY SHOULD BUY BONDS) Step 1 - YouTube

the bond renegade and um... i'm bringing this video which

i believe to be

probably the most important video

brought to you guys go far sort of a culmination of all the previous videos

on that sort of rapid together opens this what everything's been leading up

to

so this video is about

how to buy bonds uh...

i don't mean

how

you can physically go through the act of purchasing bonds

i'm not going to show you how to create a login open an account ACAT

securities, ACH wire funds to fund an account, none of that

okay let's assume that you know what a bond is

uh... let's assume that you know uh... which bonds that you are interested in and

or investing in

and um...

that you know how to click a button ok so I'm not going to cover any of those things

what I am going to cover is how you should

by a bond

in order to achieve or at least pursue

best execution for you

at some point in time

you may become a bond investor

and i would sort of characterize that that moment as

the moment you realized that a significant portion of your assets

are in individual fixed income securities

uh... maybe you've just recently retired

okay and maybe you've dropped most of your equity exposure kept

of small handful blue chips two

and most year uh... assets are now in bonds

you are a bond investor okay

in order to

be the best bond investor you can do you have to pay attention to a very crucial

part of the process which is

fighting for your best execution making sure you buy the bonds the best that you

can

uh... i've got an example up on the screen here

and uh...

i will lurk through m s rb trade data okay

some people go through the crime watch figure out of date

they've seen anybody do they knew or what stupid things happened that people got

arrested for

i look at MSRB

and i look for really poor trades or really good traits for that matter

and lets look at these new york new york uh...

city waters okay

where did that bond go?

i knew i would lose it the second I tried to show you guys

uh... lets go to, I think its

October 1st

10, 1

where'd it go folks?

there it is, 101.375

this customer sold buy bonds at one oh one and three eighths

some people would say hey "Bond Renegade"

you know that uh... that bond's gonna get beat up on the bid 'cause they only bought

five of them about the

are much around that republican

just what someone else bought

by personal buy bonds

when they told by bonds that today morning and they got

over eight points better

certain eighty bucks a bond in five months

so before about matters to you

them so should this material

some disgusting best execution and i gotta tell you

we're not talking about which bond the by all of these people

where retail investors

purchased the same bond so at one point they decided that one at a place in

their portfolio their broker decided who they're advisor decided

and they bought them

that different between

the guy that cells at one oh one and three eighths nagata cells at one oh

nine forty five

karen the difference between the student that stirs

there simply one had better access to the west setup better

to pursue best execution

so let's talk about the first major component of what you need to do once

you've decided you're gonna be a bond investor at that moment you need to make

sure that your account

it's set up a

at a place

in any fashion

that is going to allow you to be the best bond investor you can be

to get the best deals that you can

let's talk about the do it yourself for privy

that uses the online uh... discount brokerage firm

when you are shopping for a discount brokerage firm

uh... obviously you're gonna wanna have online access

cheer account you're gonna wanna be a little scroll tournament or a screen

bonds and point click by

additionally you wanna make sure of

is that if you see a better deal

on the street

so that there is another dealer in the inner dealer market place that is

offering the same bonds or a very similar bond

than your current brokerage firm is offering you you wanna make sure that

you can either call their trade desk to have been picking up

or that you can electronica lee input that order and make sure that they'll

fill you at that better rate

uh... a lot of people realize that you can do that

you can you just you would know if you didn't ask

so certain um... from july to do that

some wall

so you're just gonna have to add i've actually

i know if you

uh... if you have any questions are

comments you know please just on my comment section and all message of back

but

that's for the online do it yourself for okay

d

got uses ok uh... commission broker or a broker dealer

so pretty much the same thing they're they're going to have

maybe internal proprietary inventory offerings at those show you

you're make sure that

you give a healthy sense a competition to their offers by a family

in tissue mere months but what about the rest of st

if i find bonds better away are you gonna be able to go and pick them up for

me

may be charged me a little bit but if i find a much better can i go to st and

buy them

and you delivered in my account

that's important because if you're buying bonds through uh...

a brokerage firm and their trader has propositions look for the market went

sour on them

they own that bond you know it's up to them to try to recoup their costs

so

if they can get out of bond by selling it

to their brokers who will sell them to their client that would be you

and recruit some of their losses even though the bond is trading at a much

better rate in the marketplace

they're gonna attempt to do that

unless you know

uh... the bond is price better elsewhere you know how to find it and you can

direct them to go pick it up so when you're interviewing a broker make sure

that if you're gonna be doing a lot of bonds or that's where most your money is

they didn't get the best deals possible and that's something you should ask your

broker dealer the broker that he was your account

so i find to them better trying to write you pick it up before you try and force

a bad position down my throat

if that's all you have

let's talk about uh... last not least v

guy who warn used to be registered investment adviser

so your assets will be held to the clean independent custodian

uh... advisory wool

normally custody rathod i don't know any that do

you need to make sure that be adviser has the ability invisibility

onto one key industry and work with the street so that their but where of the

inner dealer market

on and that they can work with those guys

and also that the custodian

that they use will allow them to deliver the once your account

mo custodians wall oven do that

in fact uh...

publica studies will make

make the uh... advisor purchase bonds

from that bhaskar from their own inventory deaths

to deliver to your account

so it kinda take some of the

objectivity out when they do that but

this does happen soap make sure that you can do that um...

easily as well

sometimes allow in special uh... circumstances

uh... i've seen some brokerage firms or custodians rather that don't like to

allow i'll find out at the end

uh... but i've seen the make exceptions when the investor made a big enough bus

so

it can usually be done

but you don't want a whole lot apple and trying to accomplish it

so uh... that's basically a you're gonna be purchasing bonds your bond investor

now

uh... make sure your account to set up in the right way so that you can get

competitive offers and competition always get you a better deal

letter to the stadium i hope this helps and uh...

you know just keep in mind

you don't want to be this guy

you want to be

have a great day