No. of Recommendations: 2

When FIL died several years ago he held various bonds (corporate and tax-exempt - to a much smaller extent) that way past his demise [by as much as 30 years] at just a shade under 90. It was a mind-set for that generation, combined with a locking-in of yields. When FIL bought bonds the yields were different, as well as market conditions.

Today, I expect there are many "big boys", such as pension funds, that are heavily involved in bond trading that buy these bonds. As you say, its not for us small fry.

We currently have a fair amount of "cash" invested in "weeklies" - muni's that automatically turn over every week. (Through Fideltiy, for those who are interested.) We are getting over 5% yield, since they are tax-exempt, and can't find an equivalent in longer-term treasuries.
Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.