MercyMe
Recycles dryer sheets
- Joined
- May 7, 2022
- Messages
- 227
The current new issue of three-year FHLB bonds has a 5.35% expected yield. Since they are allegedly not state and locally taxable, the tax equivalent yield for me is 6.28%.
Of course they are callable and their guarantee is only "implied", but still these seem to be decent investments for some fixed income. The first bond I ever bought was just a few weeks ago and it was $100k in a 5 year FHLB bond yielding 5.5%.
I was thinking about buying more of these, but they seem too good to be true. What is the down side to FHLB bonds?
Of course they are callable and their guarantee is only "implied", but still these seem to be decent investments for some fixed income. The first bond I ever bought was just a few weeks ago and it was $100k in a 5 year FHLB bond yielding 5.5%.
I was thinking about buying more of these, but they seem too good to be true. What is the down side to FHLB bonds?