Author Topic: Should my bonds stake be in TIPS or treasuries?  (Read 1138 times)


maizeman

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Re: Should my bonds stake be in TIPS or treasuries?
« Reply #1 on: October 16, 2018, 09:25:55 AM »
Worth reading the whole article (it's a quick read) but the major takeaways seem to be

1) Because TIPS are marginally less liquid than regular treasuries, right now -- based on two different metrics for expected inflation -- there is no yield penalty and actually a small yield bonus to buying TIPS relative to regular treasuries.
2) In the absence of a yield penalty or even in the presence of a small (.0-0.5%/year) penalty it would make sense for investors to have the majority of they assets allocated to US government debt in TIPs rather than regular treasuries.

ChpBstrd

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Re: Should my bonds stake be in TIPS or treasuries?
« Reply #2 on: October 18, 2018, 01:20:38 PM »
3) FDIC- insured CDs yield better than either, so if you are building a ladder don't buy TIPS or nominal treasuries.

talltexan

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Re: Should my bonds stake be in TIPS or treasuries?
« Reply #3 on: October 19, 2018, 11:38:18 AM »
please tell me where you're finding CD's that yield in excess of 3.2%

cap396

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Re: Should my bonds stake be in TIPS or treasuries?
« Reply #4 on: October 19, 2018, 08:56:37 PM »
If you invest with Schwab, it has some 5-year CD's at 3.4% currently.

chasesfish

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Re: Should my bonds stake be in TIPS or treasuries?
« Reply #5 on: October 20, 2018, 06:09:43 AM »
The yield curve is really flat, I'm finding short-term bond funds and brokered CDs are better than TIPS

ChpBstrd

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Re: Should my bonds stake be in TIPS or treasuries?
« Reply #6 on: October 20, 2018, 09:24:30 AM »