Tag Archives: Treasuries
US Treasury I-series savings bonds – still zero real yield
For the 6th straight 6-month period in a row, US Treasury I-Bonds will be issued with a fixed “real” rate of 0%. That’s zero. Nil. Nada. Zip. The nominal yield is higher, since it’s a composite built out of the fixed (zero) rate plus a component representing inflation. The composite rate right now is 1.18%. […]
Zvi Bodie, TIPs, Zero-Cost Collars and Equity Risks
Major piece in today’s Wall Street Journal, “Why Stocks are Riskier Than You Think” by Zvi Bodie and Rachelle Taqqu http://online.wsj.com/article/SB10001424052970204795304577221052377253224.html?mod=googlenews_wsj (Of course, Bodie and Taqqu are also hoping that this article will lead a lot of people to buy their recent book, “Risk Less and Prosper”. Bodie and Taqqu’s own retirement plan likely hinges […]
Swedroe on GNMAs for your Bond Allocation
Always worth reading, here’s Swedroe’s recent piece about whether or not to use GNMA (mortgage-backed securities) as your bond allocation: http://moneywatch.bnet.com/investing/blog/wise-investing/gnmas-you-can-do-better/2887/ Some things he notes: A 60/40 portfolio with intermediate treasuries has had a higher return and lower volatility than a similar portfolio with GNMAs GNMAs have a higher correlation with equities (which explains a […]
Meyers Wealth Management 