No. of Recommendations: 0
Would anyone who understands bonds on this board care to comment on this :)?
I believe the security he's shooting for here is a strip, but don't enough investing in bonds.
>>If interest rates go from 4.5 - 7 that a 50% profit. That will cover a lot of interest payments at the inflated rate.




From the RE investment board
500PSI
>>A friend proposed an idea that was new to me, but is obviously well known by many people. That is, we know that prices will drop when interest rates go up, but then we are forced to buy when interest rates are high. If you are hoarding cash until prices come down, have you shorted or thought about shorting the 10 year treasury? This way, as interest rates rise, you get the benefit of the lower interest rate (via the short on the 10 year) while also getting the benefit of lower prices when the interest rates are high.

If interest rates go from 4.5 - 7 that a 50% profit. That will cover a lot of interest payments at the inflated rate.

Print the post Back To Top