View Single Post
Re: GNMA vs. RE bubble
Old 06-14-2005, 11:46 PM   #7
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
cute fuzzy bunny's Avatar
 
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,526
Charlie - I've got a lump o' gnma. In my opinion, they're not so bad. A little riskier than short term bonds but with a little better payoff yield to more than compensate for that risk. I wouldnt expect a lot of upside past the 4.5% yield, but I wouldnt expect a loss of principal either.

Right now, bondwise, i'm holding CA INT muni, gnma, high yield, and the stuff that wellesley and wellington hold. I'm not feeling a lot of pressure of potential lost principal from any of them. Yields of 3.5%, 4.5%, ~7% and ~4-5% for the muni, gnma, hi yield and wellington mgt picked bonds respectively.
__________________

Many an optimist has become rich by buying out a pessimist
cute fuzzy bunny is offline   Reply With Quote