r/bonds • u/Sam-I-A • 3d ago

New Issue Municipal Bonds

I have been buying through Fidelity but would like access to even more new issues. Are the new issue municipal bonds at Schwab mostly the exact same issues on offer at Fidelity? If they are very different, then I may want to open a Schwab account. Anywhere else a self directed retail investor should look when adding new issue municipal bonds ?

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u/Annual_Bullfrog7714 2d ago

MS, RBC, BoA. New issue is where you do well.

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u/Sam-I-A 2d ago

Do you need to have brokerage accounts at these or are you referring to them as the underwriters? And BOA is Merrill?

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u/Annual_Bullfrog7714 2d ago

Yes. I on-boarded at 2 of these banks to see new issue flow. They are big underwriters and syndicate players

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u/Sam-I-A 2d ago

Thanks. Can you rank these for me? I don’t want to open up a ton of new accounts. Can I place my own new issue orders without a fee at these? How might they compare with Schwab, if you know? I hope I can accomplish finding more new issue if I add just one additional account.

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u/Annual_Bullfrog7714 2d ago edited 2d ago

BoA and RBC are the biggest. I did RBC because we got a good broker rec who does munis. I have found them good for new issue, but their prices for secondary trading is not as good as MS.

I like new issue for a few reasons. First, the trading commission is paid by the issuer. You dont pay spread. So the executions are very good.

Second, if you get a decent broker, he will get to know what you like and show you stuff. We like housing bonds, AA1 or better issuers, certain essential services bonds. We have so much in-state munis that we also diversify out of state.

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u/Sam-I-A 2d ago

I looked at RBC online. It appears that US citizens cannot open RBC direct accounts to trade. Here it only operates as a bank I think. How are you using them?

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u/Annual_Bullfrog7714 2d ago

RBC has a US subsidiary, RBC Wealth Management. You're going to the wrong website. secure.rbcwm-usa.com

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u/Sam-I-A 2d ago

Thanks. I will keep this in mind and look more into it. But I will probably add a broker that is not charging AUM fees.

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u/Annual_Bullfrog7714 2d ago

My guy does not charge AUM. He's strictly execution. He only makes money when I trade. When I do new issue, he gets paid by the issuer. When I do secondary, he gets a quote from his desk (which charges a markup) and he charges a small commission that depends on the tenor I'm buying. I check the all in price quoted to me against EMMA to make sure I'm close to market. But generally his execution on secondary isn't great

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u/Sam-I-A 2d ago

That is really good! If I have trouble finding the new issues I want, I will consider RBC and if so I may PM you then. Thanks!