- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Coaching Changes
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
I have a lot of tax advantaged funds (65%) in treasuries -Default question
Posted on 5/4/23 at 9:00 am
Posted on 5/4/23 at 9:00 am
So I am heavy in treasuries with a plan to rotate to equity overtime
If the US gov defaults and presents a buying opportunity my treasuries held in my Schwab account probably will not me marketable? Or heavily discounted.
Wondering if my dry powder is not dry?
How likely is my buying opportunity are you freeing up funds?
If the US gov defaults and presents a buying opportunity my treasuries held in my Schwab account probably will not me marketable? Or heavily discounted.
Wondering if my dry powder is not dry?
How likely is my buying opportunity are you freeing up funds?
1
Posted on 5/4/23 at 9:27 am to thelawnwranglers
Unfortunately, we don't have a precedent here. The prevailing thought is maybe they will start being marked down as they miss interest payments, bc you still expect principle back eventually but you are missing out on oppurtunity with that cash over time.
But who is going to be the buyer with that amount of uncertainty? That's why I think its going to be much worse, at the end of the day, buyers decide mark. If there are no buyers, the mark is 0 until there are buyers. Money markets and funds that's have to mark daily won't be buying that shite, and they are a huge portion of the buyers.
No one wants any June paper, no one is going to buy your June paper.
Not sure if I'm correct, but I did stay at a holiday Inn last night and listen to a podcast about this very topic.
But who is going to be the buyer with that amount of uncertainty? That's why I think its going to be much worse, at the end of the day, buyers decide mark. If there are no buyers, the mark is 0 until there are buyers. Money markets and funds that's have to mark daily won't be buying that shite, and they are a huge portion of the buyers.
No one wants any June paper, no one is going to buy your June paper.
Not sure if I'm correct, but I did stay at a holiday Inn last night and listen to a podcast about this very topic.
This post was edited on 5/4/23 at 9:31 am
Posted on 5/4/23 at 10:27 am to Pendulum
Sometimes when you’re hitting rapids it’s better to paddle faster. Unless there is a waterfall on the other side. Lol
I make this analogy bc emerging market debt may be the safest place to be if there’s a USD default.
I make this analogy bc emerging market debt may be the safest place to be if there’s a USD default.
Posted on 5/4/23 at 10:37 am to Pendulum
quote:
But who is going to be the buyer with that amount of uncertainty? That's why I think its going to be much worse, at the end of the day, buyers decide mark. If there are no buyers, the mark is 0 until there are buyers. Money markets and funds that's have to mark daily won't be buying that shite, and they are a huge portion of the buyers.
It's worth something. But it would go from an almost guaranteed value to something far different. And inlike corporations, there isn't a set of audited financials to build off of.
I don't think they will default. Both parties like to deficit spend too much, and defaulting would harm future abilities.
Posted on 5/4/23 at 11:50 am to LSUFanHouston
quote:
It's worth something. But it would go from an almost guaranteed value to something far different. And inlike corporations, there isn't a set of audited financials to build off of.
Default might be opportunity to buy treasuries with great yield
Posted on 5/4/23 at 9:48 pm to thelawnwranglers
Did anyone else notice, that the rate for 1 month treasuries spiked today? It jumped to almost 6%
This post was edited on 5/4/23 at 9:49 pm
Page 1 of 1
Popular
Back to top
Follow TigerDroppings for LSU Football News