how to find higher coupon non-callable agency Bonds on the secondary Market step by step that's what we'll be talking about in today's video hello member super Savers and bond course fans I hope you're healthy and well so as our Diamond Nest regulars know when we buy a non-callable bond we generally prioritize the yield to maturity the overall return on our investment from both the coupon and any additional gains or losses from buying the bond at a discount or at a premium meaning that under normal circumstances the higher the yield to maturity the better well as I always say everyone's Financial journey is different so today's video is for those of you who prioritize the coupon the regular interest payments in cash on a bond first and foremost rather than the overall yield to maturity perhaps because you want or need those regular coupon payments to bridge a shortfall in your inome like we talked about in this recent video link below about a diamond nestic member who under one of our scenarios needed at least a 5% coupon payment on his bonds together with his Social Security payments to cover all of his annual expenses until his target age so in today's video we're going to walk through step by step how to find and buy higher coupon non-callable agency Bonds on the secondary Market with fidelity for those of you who are looking for stable and predictable cash flow and while this tutorial will focus on agency bonds you can follow the same steps in principle for municipal and corporate bonds as well as usual here's our front of video disclaimer for a detail disclaimer please refer to the end of this video Let's dive in now folks for the purposes of this video Let's assume that I'm looking for a non-callable agency bond with a coupon above 5% and a maturity date of 10 to 20 years out here's how it would go about finding this Bond on the secondary Market with Fidelity first I'll log into my account here we can see the summary screen of all my accounts let's click on news and research and then fixed income bonds and CDs from the pull down menu and this fixed income bonds and CD screen appears let's scroll down a bit and we can see a summary of Where bond yields stand at the time of this taping now let's click on this bonds tab up here and I'll be taken to this screen next let's click on agency gsse up here which will take me to the agency gsse search screen note that it says secondary market and that there are 1,226 secondary Market bonds I can search for let's put January 2034 here because as soon as I want my bond to mature is in about 10 years from now and we can see that our search has been narrowed down to 196 available agency Bonds on the secondary market and if I put in December 2044 here because the latest I want my bond to mature is 20 years from now the number of available qips comes down further to 189 now let's put a four here because I want a minimum yield of 4% and remember that's the overall yield I haven't specified a minimum coupon yet that will come later to refine the search this brings the number of available qips down further to 172 now I'll click on show more criteria which will bring up more search parameters such as price quantity and coupon let's scroll down a bit and put a five here in the minimum coupon box because that's the minimum coupon I'm looking for in this instance and now we're down to just 50 54 available qips next let's move to the call feature section and click here under call protection and from this pull down menu I'll select yes because I want my bond to be call protected meaning it can't be called by the issuer before maturity and you can see that we're now down to just nine qips let's click on see nine qips and this is the screen that appears next with the search results let's click on either the yield to worse or or the yield to maturity column so that we can sort the list from highest yield to lowest yield the yield to worst and the yield to maturity are the same in this instance because these bonds are non-callable Bond beginners folks if you need a refresher please refer back to this video here on yield to maturity and this video here on yield to call and yield to worst in the agency Bond module and if you're not in our bond courses but want to learn more about all things Bond investing in treasuries agencies mun and corporates then be sure to check out our popular Bond course bundle on our website use coupon code fall 2024 to get a 10% discount on all our courses before midnight Eastern Time 900 p.m. Pacific time on Sunday September 15th and as a reminder our next live Bond beginners course session is happening in October so back to our tutorial here's what that list looks like when sorted from highest seal to maturity to lowest seal to maturity in this column we can choose whether we want to buy or sell a particular bond in this column we have a brief description of the bond issuer and other details in this column we have the coupon and in this column we have the maturity date the call date column is blank because all the bonds listed here are non-callable here we have the Moody's rating and the S&P rating now I'm not sure why some of these ratings are blank but as you can see most of these agency bonds carry the same credit rating as us treasuries here we have the bid section what we would look at if we were planning on selling these secondary Market agency bonds today because remember these naming conventions are from the perspective of the trader so bid is what the trader would bid for your bonds if you wanted to sell we're not selling though so let's move on to the ask section what the trader will ask for if you want to buy bonds from them which gives us the information we need for buying these secondary Market agency bonds today here we have the price per $100 par value if our purchase order meets these minimum and maximum quantities here so if I look at this Tennessee Valley Authority agency Bond TVA for short with a coupon of 6.15% and a maturity date of January 15th 2038 and if you're wondering why I chose this 6.15% Bond it's because it gives me the highest cash yield on my investment even higher than this Fanny May Bond here with a slightly higher 6.21% coupon plus interest earned on TVA bonds is exempt from state and local income taxes just like treasuries do note however that this is just an example for the purposes of this video and I haven't done any additional analysis on the bonds on this list again Bond beginners folks please refer back to this video in the course for more on TVA and this video here on how agency bonds from the various issuers are taxed so this is the price per $100 par value I would be paying if I was buying a minimum quantity of $110,000 par value up to a maximum quantity of $520,000 par value and this price includes quite a premium to par because this coupon is much higher than current market rates but the coupon is what we're prioritizing in this case here we have the yield to worse and the yield to maturity which again are the same because this agency bond is non-callable and here we have the depth of book which I would click on if I wanted to see what the price would be if I wanted to buy less than this minimum quantity here or more than this maximum quantity here and if we click here it will bring up this screen with more details on the agency Bond such as the the qip the coupon and the maturity date here again we can see that this bond is called protected and if we scroll down we can also see the minimum purchase quantity and the incremental purchase quantity this means that I need to purchase a minimum quantity of $10,000 par value of this agency Bond and if I want to buy more my order would have to be in $110,000 increments so for example $20,000 par value $30,000 parue value $40,000 par value and so on let's scroll back up and click on buy now which will take me to my order screen here I'll select the account that I want to purchase this bond in I'll check everything here for accuracy again this is the price per $100 par value I would be paying if I was buying a minimum quantity of $10,000 par value up to a maximum quantity of $520,000 par value I'll put in 10 because that's the minimum minimum order quantity required and we can see that this is the price that I will be paying per $100 par value the same as up here I could set a limit yield rather than a limit price but I won't in this instance given that we're more focused on the coupon rather than the yield anyway and I'll leave this as fill and kill meaning that Fidelity will try to fill this order completely right away and if they can't they will cancel it if I were to choose day Fidelity would try to fill the order throughout the day and would cancel the order if they cannot find a seller who's willing to sell at the buyer's limit price or yield here by the end of the day when the market closes this usually happens when the buyer puts in a limit price that is below Market or a limit yield that is above Market once I'm good to go I'll click on preview order which will take me to this next next screen I'll check everything here again for accuracy and read through the notes here and in particular this one the limit price that you entered has been adjusted to reflect a markup based on the number and type of bonds you're attempting to purchase this basically means that Fidelity charges a fee for purchasing secondary Market agency bonds which we'll see when we scroll down here is the price per $100 par value for this agency Bond and here is the price per $100 par value with markup which reflects this $10 fee here that's a dollar fee for every $1,000 par value of bonds purchased here we have the acred interest if you're new to acred interest then check out this video here link below as well for more details and here is the total price that I'll be paying for my $10,000 par value of bonds remember that this price here and here means that I'm buying the bond at a premium or above par value because in this situation we are prioritizing the 6.15% coupon which is significantly above market for a stable predictable income stream once I've checked everything for accuracy I can click on place order and voila that is how you can buy a secondary Market agency bond with the coupon that you may want or need depending on your financial situation all right members super Savers and bond course fans so I hope you enjoy this this video and learn something new and if you want to keep learning about the safest easiest and fastest ways to get started with Bond investing and building out your bond portfolio especially in times that may see continuing Market uncertainty then check out this video here on our 2024 Bond courses remember to use coupon code fall 2024 to get 10% off on all our courses before midnight Eastern Time 900 p.m. Pacific time on Sunday September 15th I've also linked all the details on our bond courses and YouTube super Super Saver membership below this video for your convenience see you again very soon with more brand new wealth building content for your financial Journey