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Interesting that it was a debt-ceiling suspension (vs an increase by certain amount) to 1/1/25. So, there may be lot of spending coming forward. Strange that the new deadline would be during a possible limbo period between the elections and when a n…
3-day T-Bill auction rate today was "only" 6.256%. Bids were 2.38x what the Treasury needed ($25 billion). But then the debt-ceiling deal cleared the House, and it is expected to go through the Senate today or tomorrow (after 2-3 Senators' objection…
Now the Treasury has announced 1-day T-Bill ($15 billion; reopening) to be auctioned on 6/2/23, issued/settled on 6/5/23, maturing on 6/6/23. May be someone can remember if this was also done during the past the debt-ceiling crises when it came so c…
I checked this morning too, those 3-day T-Bills are NOT available at Schwab & Vanguard brokerages. I thought I might help out Uncle Sam for 3 days at an indicated rate of about 9% annualized (based on quotes in the secondary market). But I canno…
100 "customers" questioned the 7-day SEC yields of VG m-mkt funds? Who has time for that?
May be they were VG competitors who questioned the VG yields even after accounting for VG's low ER. VG shouldn't have much advantage pre-ER.
Out of curiosity, I checked 2 brokerage platforms and they show only 4-wk and 8-wk T-Bills for Auction on 6/1/23 (settle 6/6/23).
Unclear who this 3-day T-bill is for. The announcement mentions both noncompetitive (for retail) and competitive (insti…
Very impressive read!
Tillinghast has an amazing memory and he has great attention to details, even minutia. He needs that to hold 800 stocks, and rumors are that if asked questions on ANY one of them, he can answer without checking notes.
So, I …
Morningstar's gutted portfolio list (it now shows only the top 10 holdings) shows that nine of the top 10 holdings made money over the past 12 months with eight posting double-digit gains.
Given a sideways comment in the manager's latest update and…
There are rumors on Twitter that Fitch may go ahead with the US downgrade, deal or no-deal.
S&P did that AFTER the resolution of debt-crisis in 2011 & suffered mightily for it - McGraw Hill is now pvt shadow of the former self after spinnin…
My guess is that Vanguard is playing a low-cost hardball with subadvisors.
ONE subadvisor may be lured by big AUM initially, or may be in the early stages of its business, but it may later want more money or may just close the funds (e.g. PRIMECAM …
The US politicians and the public who grew up with "reserve currency" dollar and "high/stable" credit rating don't realize their importance. So, there is this unusual game playing or brinkmanship in the DC that leaves foreigners dumbfounded.
But ot…
Vanguard Quantitative Group is small - only 2-3 dozen total employees. It manages alternatives, factor-based ETFs, some non-VG funds, and when needed, portions of some VG mutual funds. At some point, VG has to decide whether to expand it or use its …
That 0.625% T-Note is trading at 94.11 with YTM of 5.1682%. G/L would depend on when one bought it. https://www.boerse-frankfurt.de/bond/us91282cdb46-united-states-of-america-0-625-21-24
Those are older Treasuries nearing maturities. Coupon shown is that at the time of issue.
For example, 10-yr T-Note issued almost 10 years ago would be nearing maturity now, but will show coupon from 10 years ago. Current price would reflect a chan…
USAA was sold in 2 parts.
USAA mutual funds, etc were sold to Victory Capital/VCTR. Victory even moved its HQ from Cleveland, OH to San Antonio, TX (the old USAA facilities).
USAA Brokerages, wealth management, etc were sold to Schwab/SCHW for $1.…
S&P/SPGI scale is AAA, AA+,... etc; within AA, there are AA+, AA, AA-. It downgraded the US from AAA to AA+ in 2011. Moreover, ALL US financials were also downgraded then with the logic that no US financial can have better rating than the US. So…
...
Let’s great this party started:
VGHCX = VHT
I have often wondered why EFTs don’t hyperlink like mutual funds do on this site.
Healthcare VGHCX / VGHAX is an active mutual fund and doesn't have a related ETF.
However, healthcare VHCIX is ind…
Generative AI (ChatGPT, Bard etc) is benefitting the big techs - MSFT, GOOGL, NVDA, etc. Of course, NVDA (semi-chip designer) jumped today on huge beat on sales and profits due to high demand from AI, and the related stocks TSM (semi-chip manufactur…
Congress is on Memorial Recess now, but may be recalled on short notice. More precious days to the debt-ceiling deadline wasted.
Meanwhile, very short-term T-Bills yields are acting up, while the dollar is getting stronger. This may be getting comp…
Moody's is just watching for now (this article was before the Fitch's new).
https://www.reuters.com/markets/us/change-tone-us-debt-talks-could-prompt-rating-action-before-default-moodys-2023-05-24/
S&P has been quiet - it did the damage already…
@larryB, thanks for the info. I just browsed Schwab Bank site w/o login & didn't see any CDs offered. Next time I log into Schwab, I will check out Schwab Bank CDs too.
In the past I have used Schwab Brokerage to buy other bank CDs.
My main po…
@dtconroe, Schwab Bank is part of Schwab (holding co), and it is Schwab (holding co) that undergoes Fed stress-tests. There is no reason for Schwab to overcapitalize Schwab Bank so long as it is on the hook. Schwab Bank doesn't offer its own CDs - t…
"Permanent" DC deal may be a debt-ceiling to some 2024 post-election day. And then, this fiasco will begin all over again.
One of the sticking point in the current negotiations is that there seems agreement for extension to some pre-election date …
Is a bid/ask/spread of over 19% a big deal on a bond ETF?
Bid-ask are reliable only during the market hours. At other times, stub/placeholder bid-ask may be shown that look outrageous.
Pimco multisector bond funds are;
OEF PONAX / PIMIX
CEFs PDI, PDO, PAXS
etc.
The same group of people will be managing this new ETF:
"PIMCO serves as the investment adviser for the Fund. The Fund’s portfolio is jointly and primarily managed by Dani…
At Schwab, I just use the linked Schwab Bank that has Bill Pay (as backup, as I use another Bill Pay as primary); it is also linked to some other accounts. If you sell Schwab m-mkt fund, the money is available for transfer to Schwab Bank the next mo…
I am familiar with broader definitions/interpretations of "cash". People can call anything whatever they feel like.
But in this thread, with the OP operating under regulatory constraints, and often repeating that his funds are NOT cash-alternative…
There was indeed a Japan Fund (SJPNX, etc; its catchy logo was stylish JF) that had many subadvisors over its life, 1990s-2014, Scudder, Fido, Nomura. In 2014, it was merged into Matthew's Japan MJFOX.
https://www.businesswire.com/news/home/20141007…
Low-cost active Capital Group ETF CGDV (newer, 02/2022- ) is more div-growth (e.g. VIG, etc) than current-div (VYM, SCHD, etc). The latter have been hurt by higher exposures to financials in this regional banking crisis.
I think it is the parent/holding co (for Brokerage, Bank, etc), or SCHW, that issued the bonds. Nonbank financials can own banks only with a holding co structure.
I have Fido, Schwab & also Vanguard brokerages. I try to follow what is going on with all of them.
It looks like at all players in the DC have now said that US debt default if off the table - McCarthy was dragging his feet. So, something will b…
Fido has several m-mkt funds. SPAXX is among core/settlement funds. But Fido has other higher yielding m-mkt funds with higher min & restrictions. Fido draws automatically from SPAXX first, & then from other Fido m-mkt funds.
Barron's article title says all: "Schwab Raises $2.5 Billion in Bonds to Shore Up Finances"
Nothing new in the article that is likely behind a paywall.
https://www.barrons.com/articles/charles-schwab-bond-offering-5be6b0a0?mod=bol-social-tw
