[Updated on Oct. 28, 2008. All yields are real yields, after inflation/deflation adjustments.] While the stock market was in turmoil, the real yields on Treasury Inflation Protected Securities (TIPS) rose to an attractive level. The real yield on 10-year TIPS broke the magic 3% number, a level that hasn’t been reached for many years. Many […]
TIPS Auction Step By Step: Read the Results
This is the fourth installment in my TIPS auction series. The previous posts in this series were: TIPS Auction Step By Step: Know the Schedule TIPS Auction Step By Step: Read the Announcement TIPS Auction Step By Step: Place the Order After the auction is over, the Treasury Department publishes the official auction results on […]
TIPS Auction Step By Step: Place the Order
This is part three of the TIPS auctions series. Other posts in this series are: TIPS Auction Step By Step: Know the Schedule TIPS Auction Step By Step: Read the Announcement TIPS Auction Step By Step: Read the Results If you are interested in TIPS but you don’t want to be bothered with auctions, you […]
TIPS Auction Step By Step: Read the Announcement
This is part two of the TIPS auctions series. The other posts in the series are: TIPS Auction Step By Step: Know the Schedule TIPS Auction Step By Step: Place the Order TIPS Auction Step By Step: Read the Results If you are interested in TIPS but you don’t want to be bothered with auctions, […]
TIPS Auction Step By Step: Know the Schedule
This is the first post in a series on buying new-issue TIPS in an auction. Other posts in the series include: TIPS Auction Step By Step: Read the Announcement TIPS Auction Step By Step: Place Order TIPS Auction Step By Step: Read the Results Tentative Auction Schedule How do you know when they will hold […]
A Business That Punishes Its Largest Customers
Here’s a Jeopardy question. A financial service charges no fee if you have less than $100,000 with them. If your account has $100,000 or more, they charge you $100 a year account maintenance fee. If you create multiple accounts, each with less than $100,000, then you will pay no fee for all your accounts. The […]
How a Callable Bond Worked
The Federal Farm Credit Banks (FFCB) bond I bought in February finally got called. For more info about federal agency/GSE bonds, see my previous post Agency Bonds for Higher Yield Over Treasury. A callable bond means after a certain date, the bond issuer can redeem the bond early, before the bond’s stated maturity date. When […]
Agency Bonds for Higher Yield Over Treasury
I invest my short-term money in a Vanguard money market fund and Treasury Bills. I also tested water with Agency bonds for slightly higher yield over Treasury for the same maturity earlier this year. Agency bonds are bonds issued by a federal government agency or a Government Sponsored Enterprise (GSE). A GSE is a entity […]