PLOWING money into 6.5% bonds, shrewd?
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Poast new message in this thread
Date: September 19th, 2026 11:13 AM
Author: ,,,,,,,,,,,.,,,,,,,,,,,,,,,.../.,,
are you 90 years old
(http://www.autoadmit.com/thread.php?thread_id=5905067&forum_id=2\u0026mark_id=5309775",#50143728) |
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Date: September 19th, 2026 11:20 AM Author: AZNgirl crying nonstop @ UT Football game
the "OFFICIAL" rec from JEWS is to have your age in Bonds (or i guess CD's or savings account if rates are high)
this is actually how targetted retirement funds work i think , they put more into bonds each year as u get closer to retirement
(http://www.autoadmit.com/thread.php?thread_id=5905067&forum_id=2\u0026mark_id=5309775",#50143742)
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Date: September 19th, 2026 12:34 PM Author: cowgod
The anti-bond stuff is ahistorical horseshit imho. In the actual deflationary crashes, duration did exactly what the textbook says. TLT returned about +34% in 2008 and +18% in 2020. Even LQD—investment-grade corporates with actual spread beta—finished +2.4% in 2008 and +11% in 2020. Bonds are duration, convexity, liability matching and countercyclical rebalancing inventory. When the growth shock crushes the expected short-rate path and term premium, a long Treasury gives you positive convexity precisely when equity beta is detonating.
AA corporates are a different beast. You are long rates duration + spread duration, earning carry for accepting migration/liquidity/issuance risk. Great instrument. Bad substitute for T-bills if the stated purpose is dry powder. btw, this whole situation reminds me of the State of AAA Gaming: enormous budgets, supposedly sophisticated participants, endless branding, and somehow everybody has forgotten what the underlying fuckin' product is.
(http://www.autoadmit.com/thread.php?thread_id=5905067&forum_id=2\u0026mark_id=5309775",#50143832) |
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