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The Federal Reserve Bank Is Buying T-Bills And You Should Too

johnNjohnN
in Fund Discussions
https://seekingalpha.com/article/4318061-federal-reserve-bank-is-buying-t-bills-and-you-should-too

The Federal Reserve Bank Is Buying T-Bills And You Should Too
Jan. 21, 2020 11:45 AM ETiShares Short Treasury Bond ETF (SHV)5 Comments
Summary
Investors should heed warning from the latest Fed move and consider purchasing the iShares Short Treasury Bond ETF.
SHV offers investors a safe return on short-term cash with a 30-day yield of 1.5% and a negative beta. The SHV is a very conservative way invest short-term capital.
The Federal Reserve Bank of New York added $60.7 billion in treasury bill purchases last week within the repo market

Comments

  • FD1000
    Why would I buy SHV when MM pays the same?
    Because the Fed is expanding its balance sheet stocks and bonds are doing great..
    In the last 3 months (link) SHV made 0.4% but PIMIX made 2.7% and NHMAX(HY Muni) made 3% and SPY made over 10%
  • Gary1952
    edited January 2020
    FD1000 said:

    Why would I buy SHV when MM pays the same?
    Because the Fed is expanding its balance sheet stocks and bonds are doing great..
    In the last 3 months (link) SHV made 0.4% but PIMIX made 2.7% and NHMAX(HY Muni) made 3% and SPY made over 10%

    My thought too. Only reason I can see is 100% defensive position. But they are buying because it is their job.

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