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Companies Start Lining Up Floating-Rate Treasury ETFs
We have cautioned clients for a while now about these bonds. The lemming herds are gobbling the bonds up. Just wait until we have a credit crunch, and you will see a lot of surprised investors who thought these were 'safe'. Much smarter to use a flexible bond fund that can go anywhere.
Reply to @BobC: Bob, people cannot yet gobble these up (Floating rate Treasury bonds) because they do not yet exist. Treasury will start issuing these at the end of January, 2014. I think you are confusing with Floaring Rate Bank Loans or Floating Rate Corporate debt.
Reply to @Investor: You are so right, Investor. I wrote before I engaged my brain. And I misread the line anyway, assuming it was about regular floating rate corporates. Sometimes my senior moments come all at once.
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