Money Markets or Bonds?
Why do investors prefer bonds over money markets? And are bonds better than bond ETFs?
Why do investors prefer bonds over money markets? And are bonds better than bond ETFs?
Long Story Short: Sorting through stuff from my inherited IRA from my grandads recent passing. Can anyone tell me what possible reasoning the FA had for liquidating the stocks and moving everything to this mix of bonds? He's on vacation right now and I was just trying to learn a little before I finally got to talk to him next week. I'm lost beyond EE bonds so this smattering of jargon is hard for me to grasp.
New to bond investing but after watching a few vids, I think I understand the basics.
I'm poking through some munis and see something like this: https://imgur.com/a/heiwWpv
It's maturing in a couple of weeks. The Ask YTM is 2.990. How are they getting this number? The ask is above par and even if there is a coupon payout before/at maturity, that would put it at less than 2.5, right?
I have some ibonds and I am trying to figure out how to designate a beneficiary for those bonds. I searched the treasurydirect.gov website and I can’t find anyway to do it. Is there a way to do this?
Alan Greenspan passed away at 100 years old. He served as Fed Chair from 1987 to 2006, under Reagan, Bush Sr, Clinton and Bush Jr
He inherited a 10Y yield of over 10% and handed the reins over at a time when 4.5% seemed to be the norm
"You don't want to surprise the markets unless there is a purpose to it"
So a friend of mine recently came into 5 EE savings bonds. He had been helping a man who ultimately left this world before he should of. A year earlier right after his sister passed away, he gave my friend a sealed envelope and told him not to open it until his passing. He respected it and put the envelope up in his safe. Well when he was cleaning it out and found the envelope. He opened it to find 5 savings bonds EE. Only problem is they are not in his name and the man has been passed away about a year now. I've been reading to try to help him but I'm just confused. Might be worth to say that 4 is for $10,000 and one for $1000. I plugged info into the calculator and they all 5 are worth $99,000 one of them will be 30 years old next year. How can he get these cashed? His name is not on them but he does have owner and co owners death certs. Any guidance is greatly appreciated.
First, i'm not looking to sell these for a profit, i'm looking in to a fixed income on the investment for 30 years. I'm struggling to figure out which of these (or something else) is the best to invest in AND if I should wait a bit to do it. There are 3 that I think i'm interested in:
US 30 year treasury at 4.95%. Is it worth waiting a bit for it to go up? It's not like our debt is getting better in the near term.
There is a "United Mexican states" bond at 7% that is call protected. I'm not sure i understand what this is and the risk associated, so i'm weary about it.
In the corporate bonds, Fedex bonds are at 6.5% and are "call make whole"
I'm hoping people that are smarter than me can chime in? I'm not an investment pro, just looking for a long term stable investment. Thanks.
NVIDIA recently tapped the debt market for liquidity and it was spectacular. While auctioning only $25 billions, investors showed a willingness to deploy more than that as they came in with more than $80 billions.
It is clear that the cooperate bond markets are still deep. I think this showed that liquidity in the system is not really a problem as many are saying. Regardless of what happens, the yield curve is still very much normal. There maybe fault lines somewhere but it’s clear that giant players are not finding it hard with liquidity issues. The cooperate bond markets is still very deep for the proven institutions.
The proceeds of GSS bonds fund green, social and sustainable projects. I understand if the funds go towards loans for green business or maybe loans to local governments for social projects with payment by results schemes (savings generated in public budgets repay the loans). But what about projects that have no return? How does it work? I just don’t understand what generates the proceeds that pay the coupon to investors. Any thoughts?
Using the SpaceX IPO as a clean example of basic price rationing: when retail demand hits a fixed float, price does the rationing instead of quantity. Same mechanic that makes a Treasury auction tail when the bid is thin — not enough buyers at the screen, so yield backs up to clear.
Made a quick 45-sec explainer walking through the demand/supply framing: [link]
Relevant this week with the 20Y reopening hitting on the FOMC eve — curious how people are reading auction concession into Wednesday.
Educational, not investment advice.
When redeeming an I-Bond by mail, Form 1522 doesn't say or recommend it be sent Certified or Registered mail, so is it safe to send via regular USPS mail?