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IBRK senior notes


muscleman

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I am a little puzzled when I log onto IBKR website and saw that they have a program to invest my cash into IBKR notes that yields 0.5% for 60 day duration. I am a little confused here. If I buy the notes using cash in my account, do I still have the cash to buy stocks when I want to? I know some other brokers like Fidelity has the automatic redemption ability, so if I want to buy a stock, they will automatically withdraw from the money market fund and use that to buy stocks.

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I use it but haven't been offered any notes. But if they are offering you 50bp I assume the cash is locked up, unless you have the ability to sell the note, in which case you won't be guaranteed par. Probably offering the notes as part of a regulatory requirement to show term funds in case of future (30-45 day) outflows.

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