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Started By
Message
Time to go longer duration?
Posted on 10/21/23 at 7:36 am
Posted on 10/21/23 at 7:36 am
For the first time in a decade, we can finally earn something meaningful with cash.
1. Are you shifting into longer duration fixed income?
2. Why?
3. If so, how are you executing it? US Treasuries, Agg Bond Funds, Muni Bond Funds?
1. Are you shifting into longer duration fixed income?
2. Why?
3. If so, how are you executing it? US Treasuries, Agg Bond Funds, Muni Bond Funds?
11
Posted on 10/21/23 at 7:41 am to lynxcat
I’ve been cascading CDs and t-bills for about a year now.
Posted on 10/21/23 at 8:42 am to lynxcat
My timeline is about anohter 20-30 years. I'd like it to be 20 if I can get my rentals all paid off.
Posted on 10/21/23 at 9:02 am to lynxcat
Transferred a large sum into a 7 month CD at 5.3%. Might let it ride for awhile
Posted on 10/21/23 at 7:56 pm to TOPAL
I’m in big in bank loan funds with 9.82% yield right now.
Posted on 10/21/23 at 9:53 pm to lynxcat
I am under water but buying 20y Treasuries in my retirement.
My dad rightfully telling me 5% isn't that giving his experience.
We are headed into recession in election year. They have to start cutting rates no?
Previously had year or less duration so going equities and long term.
I think I am 20y out from retirement. So 5% feels good
My dad rightfully telling me 5% isn't that giving his experience.
We are headed into recession in election year. They have to start cutting rates no?
Previously had year or less duration so going equities and long term.
I think I am 20y out from retirement. So 5% feels good
This post was edited on 10/21/23 at 9:55 pm
Posted on 10/23/23 at 7:52 am to thelawnwranglers
quote:
So 5% feels good
Yes it does, especially after 20 years of little return from the banks. A generation of lost income from savings.
Nice to loan banks money and get 5% or more.
Posted on 10/23/23 at 9:05 am to leeman101
I've been buying various length T-bills(up to 6 mo.) since the start of the year but now re thinking this and looking more at Muni Bond funds for tax purposes. (this is a taxable account) We do have some money in AGG for wife's IRA.
This post was edited on 10/23/23 at 9:07 am
Posted on 10/23/23 at 9:49 am to lynxcat
I have some in at 5% but are we really making anything? 0% with 1.5% inflation is better than 5% with 7% inflation. Especially with cost of living index at closer to 13%.
I know the gamble of locking in long term rate and hoping inflation tames down some is tempting but is that really going to happen?
I know the gamble of locking in long term rate and hoping inflation tames down some is tempting but is that really going to happen?
Posted on 10/23/23 at 9:50 am to LSUtiger89
quote:
Time to go longer duration? by LSUtiger89I’m in big in bank loan funds with 9.82% yield right now.
Wow..I’d love to find out more.
Posted on 10/23/23 at 9:50 am to lynxcat
I’m 15-20 years from retiring.
I’ve got about half of my personal taxed portfolio in 6 month Treasuries ladders and some I-Bonds from 22’. The remainder and also my old 401K are in S&P 500 Index ETF’s.
Right now; I’m toying with buying longer duration 5 year or even 10 year just to lock in guaranteed returns. I don’t see me abandoning the Index funds and will continue to acquire more of them.
My target is the S&P’s annual average return of 7-8%.
My reluctance is that I still think interest rates may go up more in the next 12-24 months. I think 6% is very much on the table and if it happens I’ll probably take the plunge.
It’s my personal belief that a soft landing isn’t happening and that the effects of inflation are far more insidious than the media/officials want to portray.
I haven’t really dug into Muni or Corp Bonds; it’s probably something I need to do.
I’ve got about half of my personal taxed portfolio in 6 month Treasuries ladders and some I-Bonds from 22’. The remainder and also my old 401K are in S&P 500 Index ETF’s.
Right now; I’m toying with buying longer duration 5 year or even 10 year just to lock in guaranteed returns. I don’t see me abandoning the Index funds and will continue to acquire more of them.
My target is the S&P’s annual average return of 7-8%.
My reluctance is that I still think interest rates may go up more in the next 12-24 months. I think 6% is very much on the table and if it happens I’ll probably take the plunge.
It’s my personal belief that a soft landing isn’t happening and that the effects of inflation are far more insidious than the media/officials want to portray.
I haven’t really dug into Muni or Corp Bonds; it’s probably something I need to do.
Posted on 10/23/23 at 6:57 pm to XenScott
Floating rate funds. It’s in bank loans usually. So the rates the banks can give on a money market (5%) is because they are receiving 7-10% on interest on loans. You can invest in those high interest loans during high interest rate environment times.
Posted on 10/24/23 at 10:51 pm to LSUtiger89
Yep I'm steadily adding 5 year CDs and treasuries to my ladder. Was at 3 years till rate rise. I have a couple short term bond funds with losses. I'm even thinking about tax loss harvesting those and adding those $ versus earning my way back.
Posted on 10/25/23 at 7:59 am to biscuitsngravy
The floating rates will allow you to keep with inflation really. Plus it’s the real return more so than the CD. Plus more liquidity and flexibility. The loss harvesting isn’t a bad idea. It’s not bad to have some losses every now and then to use.
Do you expect interest rates to remain this high and market to stay subdued/down/low for another 5 years?
Do you expect interest rates to remain this high and market to stay subdued/down/low for another 5 years?
This post was edited on 10/25/23 at 10:38 am
Posted on 10/25/23 at 7:32 pm to LSUtiger89
quote:
I’m in big in bank loan funds with 9.82% yield right now.
That’s the opposite of taking on duration.
Posted on 10/25/23 at 9:02 pm to whodatigahbait
I know. I don’t think long duration is the way. Short and mid with flexibility to move in to equity quickly.
Posted on 10/25/23 at 9:27 pm to LSUtiger89
Buying duration in individual corporate bonds. 10 years out 6.5% coupon and 6.6% Ytw.
Happy to sit on the income and wait for coming recession. Then flip out after a nice bump in market value to more reasonably priced stocks.
Happy to sit on the income and wait for coming recession. Then flip out after a nice bump in market value to more reasonably priced stocks.
Posted on 10/25/23 at 10:51 pm to LSUtiger89
No I think we're approaching the end of the fed rate hike cycle. Time to lock in yield and extend duration.
Posted on 10/26/23 at 1:08 am to leeman101
quote:And what do you think inflation is?
Nice to loan banks money and get 5% or more.
Posted on 10/26/23 at 1:09 am to LSUtiger89
quote:There are funds that package these into CLOs that are yielding 20% now.
Floating rate funds. It’s in bank loans usually. So the rates the banks can give on a money market (5%) is because they are receiving 7-10% on interest on loans. You can invest in those high interest loans during high interest rate environment times.
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