I've been watching others chant about TIPS here for awhile, but whenever I go on Fido to poke at them, there is never any inventory. Secondary or Auction.
Today, there are 45 CUSIPs in secondary and I am flat out ignorant on what I'm looking at. (there has never been any new bonds in "auction")
To be specific, for those who want to follow along in the hymnal: CUSIP 912828NM8
Maturity date 7/15/2020
Bid Adjusted Price: 117.649137
Bid Price: 99.470
Ask Adjusted Price: 117.761499
Ask Price: 99.575
Its showing at Yield of 6.030%,
Yield to Worst of 5.118%
and Yield to Maturity of 5.118%
Is there a malfunction in here that says this TIP is going to have a yield north of 5% (even if on an annual basis)??
I'm so twisted I'm not even sure I can phrase my questions intelligently, so please be gentle...
The Fixed Income Analysis tool isn't helping much as the "cash distribution" section shows "no data available".
Total Market Value:$58,837.49
Average Maturity:0.12
Annual Interest:$739.38
Total Par Value: $50,000.00
Average Estimated Yield: 5.84621%
Average Coupon Rate: 1.25%
Average Price:$117.67
When this thing matures in July... do I lose money and get the 50K par value + 739.38 interest? I've read the 'principal' value goes up by the inflation factor each year... so I assume par value is no longer accurate for calculating return... but where do I find what the new par value is??
How do you use the Fido analysis tools with TIPS to evaluate the return?
Since there are never any new TIPS available, how does one evaluate and buy new TIPS issues at Fido? (Since I'm ignorant on these at Fido, I'm not ready to jump to Treasury Direct yet)
Today, there are 45 CUSIPs in secondary and I am flat out ignorant on what I'm looking at. (there has never been any new bonds in "auction")
To be specific, for those who want to follow along in the hymnal: CUSIP 912828NM8
Maturity date 7/15/2020
Bid Adjusted Price: 117.649137
Bid Price: 99.470
Ask Adjusted Price: 117.761499
Ask Price: 99.575
Its showing at Yield of 6.030%,
Yield to Worst of 5.118%
and Yield to Maturity of 5.118%
Is there a malfunction in here that says this TIP is going to have a yield north of 5% (even if on an annual basis)??
I'm so twisted I'm not even sure I can phrase my questions intelligently, so please be gentle...
The Fixed Income Analysis tool isn't helping much as the "cash distribution" section shows "no data available".
Total Market Value:$58,837.49
Average Maturity:0.12
Annual Interest:$739.38
Total Par Value: $50,000.00
Average Estimated Yield: 5.84621%
Average Coupon Rate: 1.25%
Average Price:$117.67
When this thing matures in July... do I lose money and get the 50K par value + 739.38 interest? I've read the 'principal' value goes up by the inflation factor each year... so I assume par value is no longer accurate for calculating return... but where do I find what the new par value is??
How do you use the Fido analysis tools with TIPS to evaluate the return?
Since there are never any new TIPS available, how does one evaluate and buy new TIPS issues at Fido? (Since I'm ignorant on these at Fido, I'm not ready to jump to Treasury Direct yet)
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