Yes.
I suppose you're right.
It depends when you purchased them, but the yields look ballpark. The yield on .90015 should be higher than on .905 and the fact it isn't is down to the dates of purchase. I attach a spreadsheet to enable you to do the calculations. I didn't put in any costs so that is up to you.
Hi Duke,
I don't think it's irrational when making a large purchase, especially since with DEGIRO you will purchase the Irish government bonds on the Frankfurt exchange, where they have 0 volume most days, compared to on the Irish stock exchange with a traditional broker, where the volume is in the millions. While the price is about the same whenever I check it, I can imagine that you might have to pay more than 0.4% higher than the ISE price for a large purchase. I dearly wish one of the discount brokers would allow you to purchase bonds on the ISE. Maybe if enough of us write to DEGIRO ([email protected]) to ask for it, it might happen.
I am not 100% sure on this.
Of course you are correct, that most be the case. I assume that you pay the accrued interest when you buy the bond?
Yes, I would think absolutely that would be the case.
Did you negotiate them down from your earlier rate, or do they charge less on French government bonds?
I would be grateful if you described the process. Do you call, identify yourself, say you want to place a limit order for a quantity X of CUSIP Y at price Z, ensuring that you have enough cash in your account to pay for that plus the Goodbody fee plus any accumulated interest on the bonds, and that's it? Since you found the experience comforting, does that mean that they are pleasant to deal with, rather than giving the impression that they regard "retail investors" with disdain?
I did a bit of negotiation on my first deal which was an Irish govie which they dropped from .5% to .4%. I subsequently bought GB and French govies and .3% seemed to be the rate without any negotiation.
You call and take option 1 - place a trade. Answered almost immediately on first name terms. You give your Goodbody reference number and a few personal details. I then simply asked them to buy as much of a particular govie as is in my cash account, which I will have topped up that day by an AIB to AIB transfer. I tell them the price that I am looking at on screen, just to make sure we are talking the same bond, but I give them no directions as regards limits. I have always (3 times does not make a summer, I guess) got at least as good as the price I saw on screen. Within about 20 mins I see the transaction has been enacted on my online dashboard. Stone age compared to De Giro, I know, but I do like the human touch, I am not a millennial.