Date: Tue, 13 Feb 2007 08:36:28 -0600
From: "kastnna" 
Newsgroups: misc.invest.financial-plan
Subject: Re: How to select individual bonds for purchase?
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On Feb 13, 7:49 am, beliav...@aol.com wrote:
> Individual investors do not see a two-sided market
> in callable bank CDs -- they can buy them, but they don't (at least I
> don't) see publicly quoted prices at which they can be sold. In
> general I recommend that individual investors avoid complicated
> products with one-sided markets. There is a two-sided market in
> corporate and (to some extent) municipal bonds, so any embedded
> optionality in them should be priced fairly. Even in those markets, a
> low-cost bond fund may be a better investment vehicle, because a fund
> can be better diversified and because in the bond market, unlike the
> stock market, the bid-ask spread can be higher for small order sizes.

I am not advocating callable bank CDs by any means, but most financial
professionals CAN access both sides of the callable bank CD market.
Most, if not all, broker/dealers give us access to them.

You are right in on both accounts in that individual investors cannot
readily see this market and there is little if any benefit over munis,
corps, and bond funds.