|
The Motley Fool Discussion Boards
|
Previous Page | |
|
Investing/Strategies / Bonds & Fixed Income Investments |
||
|
URL:
http://boards.fool.com/it-depends-on-how-much-you-value-liquidity-but-24255061.aspx
|
||
| Subject: Re: Treasury Direct vs. Vgd. for Tbills | Date: 6/21/2006 2:25 PM | |
| Author: rog56 | Number: 17203 of 34965 | |
|
It depends on how much you value liquidity, but the Treasuries are currently trading at 5.22% APR = 5.30% APY. With 5% state tax savings, that 5.58% tax equivalent yield. Yes, indeed, liquidity is what I am buying by accepting a bit less from HSBC. However, I bear in mind that there could be 25 or 50 basis points added to short-term interest rates over the next 6 months. If HSBC respond - perhaps moving their rate to above 5% - then the liquidity they provide will have got cheaper, relative to Treasury Bills. |
||
| Copyright 1996-2013 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us | ||