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We have some 5% CD’s maturing today. Amounting to 2.5 % of our investable assets. I just have no enthusiasm and no conviction for any reinvestment direction for these funds. I know that folks are hungry and hurting but I got them old “Reinvestment Blues.” Crash,,, remember Tab Benoit had a great guitar riff on this song back in the day.
What to do with maturing CDs? Oh, dear. DODLX at 4.43% yield? I'm still holding my junk, yielding over 7%. But share price has been very slowly falling... FALN yields 6.15%. "Break a leg."
That’s the idea Crash. Thanks. Big smile. Can you imagine FD 279 pondering the meaning of the Reinvestment Blues? He couldn’t wrap his mind around the concept.
not just that, but full year of higher rates soon to reverb on your 1040. that was a partial reason i completed a major switch to short-term tax-free active funds post election.
Can’t view video: They want me to sign in to Google so we can confirm you’re not a bot so they can track me across the internet.
Never much on holding cash. Presently, have spread the “cash” portion equally among SPAAX, JAAA and AGZD. In no way is that a recommendation. But there are some reasonable alternatives to cash for those with a time span of years rather than days.
TBUX is still working for me. But, it carries some risk I-bonds are not too bad, but limited in the total amount annually.
I had a CD in the early 1980s that was paying 16%. Sad when that matured! lol
This is going to be a bigger issue going forward with CDs, MMF and even ultrashort bond funds
Less than half the bonds in TRBUX are rated higher than BBB. And it does hold some junk bonds and a lot of “unrated” which could be perfectly fine, but subject to TRP’s assessment. Possibly their strategy here: about 1/3 of the holdings consist of BBB / BB rated, with BBB being the greater of the two. I guess ultra-short funds can pull this off OK. It gives me some pause.
Albeit -T Bills & insured bank deposits represent the very safest “cash” holdings if that’s your desire. Beyond that you’re playing with credit risk, duration risk, management risk and in some cases derivatives risk. Sleep well.
Just watched the great Heather Cox Richardson. She wasn’t talking about business or personal investments but articulated an awareness of a sense that things in the country broadly are “unsettled.” Maybe that should be the next thematic ETF. UNSET. An ETF for unsettling times.
TBUX is still working for me. But, it carries some risk I-bonds are not too bad, but limited in the total amount annually.
I had a CD in the early 1980s that was paying 16%. Sad when that matured! lol
This is going to be a bigger issue going forward with CDs, MMF and even ultrashort bond funds
Less than half the bonds in TRBUX are rated higher than BBB. And it does hold some junk bonds and a lot of “unrated” which could be perfectly fine, but subject to TRP’s assessment. Possibly their strategy here: about 1/3 of the holdings consist of BBB / BB rated, with BBB being the greater of the two. I guess ultra-short funds can pull this off OK. It gives me some pause.
Albeit -T Bills & insured bank deposits represent the very safest “cash” holdings if that’s your desire. Beyond that you’re playing with credit risk, duration risk, management risk and in some cases derivatives risk. Sleep well.
Point taken. You can definitely lose money in TBUX, if the economy turns sour. It is more of a momentum play. And it will start losing gradually, providing plenty of time to exit. TBUX (current yield 4.59%) is the ETF, TRBUX is the mutual fund. I use TBUX to supplement my MMF.
TRBUX. If my memory serves me well,,, and that is increasingly a question,,,,,, I owned and sold TRBUX for about 5.09 …. It was when mm,,, CD’s and online savings were zeroed. When people were talking about Toyota drivers notes and MYGA and other things. One could do worse than TRBUX for its intended purpose.
I think inflation is sticker than most people believe so I would stay short duration, or barbell your exposure.
CBUDX yields 4.8% and only 22% junk. 22% floating rate. CBLDX is over 6%
David's write up of ICMUX still holds, although duration is a little longer and it has a significant amount of junk.
There are a number of financially solid stocks paying over 4% and even 5% dividends in Energy, consumer staples telecom and real estate that are not going anywhere
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I remember something that sounds rather similar:
that was a partial reason i completed a major switch to short-term tax-free active funds post election.
so we can confirm you’re not a botso they can track me across the internet.Never much on holding cash. Presently, have spread the “cash” portion equally among SPAAX, JAAA and AGZD. In no way is that a recommendation. But there are some reasonable alternatives to cash for those with a time span of years rather than days.
TBUX - risk very low
NEAR - risk low
AGZD - risk low
JAAA - risk moderate
CVSIX - risk moderate / high
LPXAX - risk higher*
IGHG - risk higher
Disclosure - I own a small stock position in Cohen & Steers
I had a CD in the early 1980s that was paying 16%. Sad when that matured! lol
This is going to be a bigger issue going forward with CDs, MMF and even ultrashort bond funds
Albeit -T Bills & insured bank deposits represent the very safest “cash” holdings if that’s your desire. Beyond that you’re playing with credit risk, duration risk, management risk and in some cases derivatives risk. Sleep well.
CBUDX yields 4.8% and only 22% junk. 22% floating rate.
CBLDX is over 6%
David's write up of ICMUX still holds, although duration is a little longer and it has a significant amount of junk.
There are a number of financially solid stocks paying over 4% and even 5% dividends in Energy, consumer staples telecom and real estate that are not going anywhere
SCHD pays 4%