imbatman
Recycles dryer sheets
- Joined
- Feb 22, 2023
- Messages
- 348
....things I never like to hear before investing...."if the company stays viable"....hahaha
....things I never like to hear before investing...."if the company stays viable"....hahaha
The thread that preceded this saved me over $40K. Thanks freedom56...
SWVXX is at 4.98 now... I expect it will hit ~5.2x in the next few weeks and may stay there a few months. Also expect to see shorter term brokered CD's (a year or less) to hit 5.5 in August.
In a word, yes. But best in a stable environment. In a declining rate environment, people tend to exit for stocks. The need to hold cash for redemptions can drag earnings.he saved me a ton of money too, because after reading through the thread I finally understood the truth about bond funds in rising rate markets.
Having said that, shouldnt bond funds/ETFs become more appealing the longer rates are either stable here (or go lower)?
SWVXX is showing 5.06%.SWVXX is at 4.98 now... I expect it will hit ~5.2x in the next few weeks and may stay there a few months. Also expect to see shorter term brokered CD's (a year or less) to hit 5.5 in August.
New to the forum...
Anybody here play much in preferred's and/or ETD (baby bonds)?
Yes, I'm having a lot of trouble convincing myself not to just stay in SWVXX considering the spread to CDs is so small right now. You do get FDIC protection with the CD. I
I really wish long rates would move, both because I would love to lock in some solid interest rates and because I think the Fed needs to get them to move in order to really get inflation in the bottle.
+1 My weighted average maturity right now is 2.5 and I'd like to extend it to 3.5 or more... ultimately perhaps even 5.0 if we get a positive yield curve... as I reinvest the proceeds of maturities. If I had an evenly balanced 7 year ladder, I'm way overweight in 2023 to 2025 maturities and underweight in 2026 to 2030 maturities, meaning that I should be reinvesting proceeds in 2026-2030 maturities. Right now, I can find decent GSE offerings that mature in 2026-2030 in the 5-6% YTM, but a lot of them are callable and I'm trying to manage my call risk as well.
Right now I'm about 50% callable and want to stay at 50% or less, but if a callable will pay me a 150 bps premium then I'm inclined to take the risk.
+1 My weighted average maturity right now is 2.5 and I'd like to extend it to 3.5 or more... ultimately perhaps even 5.0 if we get a positive yield curve... as I reinvest the proceeds of maturities. If I had an evenly balanced 7 year ladder, I'm way overweight in 2023 to 2025 maturities and underweight in 2026 to 2030 maturities, meaning that I should be reinvesting proceeds in 2026-2030 maturities. Right now, I can find decent GSE offerings that mature in 2026-2030 in the 5-6% YTM, but a lot of them are callable and I'm trying to manage my call risk as well.
Right now I'm about 50% callable and want to stay at 50% or less, but if a callable will pay me a 150 bps premium then I'm inclined to take the risk.
I can understand taking some callables and/or locking in longer terms (both have their own risks of course) but for me it's no callables and terms not longer than 5yrs... I'd like to be around to collect.Agree.
I do think we gotta start taking some duration now. It (longer end) might rise but time to grab selectively for sure.
... I'd like to be around to collect.
Makes sense to me...I collect interest payments 2x a year on my callables.
While I used the contractual term in my maturity distribution I have considered buying callables for shorter rungs... you get higher yields and if they get called then no problem... and if they don't get called that's even better.
I also try to buy callables with lower coupon rates that have lower call risk.
he saved me a ton of money too, because after reading through the thread I finally understood the truth about bond funds in rising rate markets.
Having said that, shouldnt bond funds/ETFs become more appealing the longer rates are either stable here (or go lower)?
I’ve bought similar around 6-6%+ So far any within the call window have not been called. I’ll take the interest as long as they will pay it.FFCB just announced a new 6.09%, state income tax free - bond offering. Cusip# 3133EPRZ0. Rated the same as regular T-bills by Moody's and S&P. 1 year call protected.
Instead of buying more CDs or TBills, I've been hiding out in these 6%+ offerings to gather the higher yield and also take advantage of the state income tax benefit.
You might even still be able to find some of the 6.25% cusip 3133EPQX6 out there at your brokerage, but slim pickings there.
I’ve bought similar around 6-6%+ So far any within the call window have not been called. I’ll take the interest as long as they will pay it.
3133EN2D1 was a fat 6.375%'er. Would love to see more of those and with first call coming up 11/2023, I'm interested in seeing if they call it or not.
FFCB just announced a new 6.09%, state income tax free - bond offering. Cusip# 3133EPRZ0. Rated the same as regular T-bills by Moody's and S&P. 1 year call protected.