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Who the fuck would buy bonds with interest rates so damn low? It makes no sense.
Who the fuck would buy bonds with interest rates so damn low? It makes no sense.
To make money you have to increase duration and leverage and then you get something like NAC which in California makes sense because it's tax free. I figure 10 years can get to 3.1-2% worse case which would put NAC in mid 12s.
Who the fuck would buy bonds with interest rates so damn low? It makes no sense.
But the opposite may be a big opportunity: if you short treasuries and rates rise, then you win!
But the opposite may be a big opportunity: if you short treasuries and rates rise, then you win!
OK, so how exactly do you short treasuries?
To make money you have to increase duration and leverage and then you get something like NAC which in California makes sense because it's tax free. I figure 10 years can get to 3.1-2% worse case which would put NAC in mid 12s.
Still worth it - especially if you trade in and out with a bit of luck and good timing - like out yesterday morning, in today morning...
collecting 6% for 10 years...and let it compound so the dividend buys more NAC as it goes down
http://www.cnbc.com/2017/02/15/how-trump-could-trigger-a-massive-wave-of-selling-in-the-treasury-market.html
Thoughts?
#investing