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@Bobpa, moderate-allocation BALFX (60-40) is NTF at Schwab. You may use it in combination with m-mkt or ultra-ST/ST bond fund to adjust allocation to comparable 38-62 for VWINX.
Long-term PFF chart from Twitter LINK. It is underperforming financials by a lot because of the concerns that noncumulative bank preferred may be worthless in the FDIC or other bank rescues.
I did a quick search on the 14th Amendment.
Its context was the Civil War issues and related debt and some links mention that explicitly in its title, although in its final form, there is no reference to "Civil War" debt. Several subsequent interpr…
I think that I got it. The 1m T-Bill yield has spiked because the market now thinks that 1m maturity will be AFTER the drop-dead date for debt-ceiling. And this expectation changed THIS week.
https://home.treasury.gov/resource-center/data-chart-cent…
Also, banks issue most preferreds (noncumulative kind), so preferred PFF has been trashed.
https://stockcharts.com/h-sc/ui?s=PFF&p=D&yr=1&mn=0&dy=0&id=p31136951271
What happened in the case of First Republic was that (large) uninsured depositors were made whole at the expense of bond holders; the equity will likely be wiped out even though FRCB (it replaced FRC) is trading at 32c. If there was a formal bankrup…
Stranger!
What does T-Bill 1m-3m inversion today of -50 bps mean?
https://home.treasury.gov/resource-center/data-chart-center/interest-rates/TextView?type=daily_treasury_yield_curve&field_tdr_date_value_month=202305
If the high 1m-3m spread wa…
Not that unusual.
Fido also has day-limit-orders only for fractional shares (but not GTC). Keep in mind that to offer fractional shares, most brokers go through an intermediary.
https://www.fidelity.com/learning-center/trading-investing/fractional-…
First Jamie Dimon (after feasting on First Republic/FRC), and then Powell (yesterday), declared the end of regional banking crisis. Those pronouncements may have been very premature.
This AM, there are at least 3 banks on the verge of collapse - PA…
Your other post was on pension valuation which is a controversial concept. You don't need to do that at all.
Instead, do an income-gap analysis. Add up all of your estimated annual expenses; subtract your VA pension, Social Security (if any; you di…
First Republic Bank/FRCB is now trading in the Pink Sheets at about 40c. IMO, it is about 40c too high (-:).
https://finance.yahoo.com/quote/FRCB?p=FRCB&.tsrc=fin-srch
@hank, M* now backs out the shorting- and leverage-related expenses from the ER, and calls it adjusted-ER. Years ago, M* controversially stated only the adjusted ER, and argued vigorously about it, but since it started its own asset management busin…
Despite its sharp drop, the regional bank KRE is still +54.4% above its pandemic/2020 low. And now we are having a regional banking crisis, but this subsector hasn't yet reached panic-washout stage. I may take a bite at low-30s.
https://stockcharts.…
LCORX is long-short, so its ER also includes additional costs related to shorting. Still, its ER is high.
LCR is ETFs based and is long only. Inception was 1/6/20. ER is high for an ETF.
Surprisingly, their M* charts are similar since 1/6/20 (Stoc…
Yes, because they are differently titled. Individual, joint, IRA, Trust, business a/c have their separate FDIC coverages. I also noted here/elsewhere that CD1 w/POD1, CD2 w/POD2, etc have separate FDIC coverages - POD can be added to existing CDs.
…
Free YCharts has only the March CPI (adjusted), https://ycharts.com/indicators/us_consumer_price_index
Last Value 301.81
Latest Period Mar 2023
Last Updated Apr 12 2023, 08:32 EDT
Next Release May 10 2023, 08:30 EDT
@Devo, is April 2023 CPI of 302.09 a projection? Adjusted or unadjusted?
Only the March CPI is out so far and it's 301.836 unadjusted; used for I-Bonds, TIPS), 301.808 (adjusted; commonly reported in the media). I am not a subscriber to YCharts, bu…
A strange thing happened today for T-Bills. https://home.treasury.gov/resource-center/data-chart-center/interest-rates/TextView?type=daily_treasury_yield_curve&field_tdr_date_value_month=202304
The 1m-2m spread of 79 bps is HIGHER than the 1m-3…
From the link at the bottom of the FDIC FAQs on FRC posted in another thread,
https://www.fdic.gov/resources/resolutions/bank-failures/failed-bank-list/first-republic.html
"Priority of Claims
In accordance with Federal law, allowed claims will be p…
After JPM took over FRC (see nearby thread), the FDIC has updated its FAQs on failed banks,
https://www.fdic.gov/resources/resolutions/bank-failures/failed-bank-list/first-republic-faq.html
"WILL I RECEIVE INTEREST ON MY CERTIFICATES OF DEPOSIT (CD…
JPM got FRC.
https://www.fdic.gov/news/press-releases/2023/pr23034.html
Edit/Add: FRC is still trading AND collapsing. Somebody has yet to turn its pre-market quotes OFF. Edit/Add3 - The last quote/trade was at 6:39am Eastern (and then at 8:01am &a…
There is nothing in the news yet on FRC.
The US futures and Asian markets (Japan, Australia) aren't showing anything unusual.
All bids (possibly from JPM, BAC PNC, CFG USB) were due by 4pm Eastern, so we are a few hours past that. PNC is rumored t…
There were 11 banks in the attempted private rescue of $FRC via deposit infusions (that didn't work):
Gr 1, $5 billion: $BAC, $C, $JPM, $WFC
Gr 2, $2.5 billion: $GS, $MS
Gr 3, $1 billion: $BK, $PNC, $STT, $TFC, $USB
From this list, serious contender…
There is the POD trick. Each CD with a POD beneficiary is separately covered. So, retitle one of the CDs with a POD, or CD1 with POD1, CD2 with POD2, etc. Note that POD would kick in only if one dies. Bank may need the Social Security number of the …
The note that @msf found cannot be found easily from I-Bond page, https://www.treasurydirect.gov/savings-bonds/i-bonds/
It is buried under Help Center "Savings Bond FAQs", https://www.treasurydirect.gov/help-center/savings-bond-faqs/
The warning…
I am just rolling maturing 3m T-Bill (5/4/23) into 3m T-Bill auction Monday (5/1/23) - both will settle on 5/4/23. 3m is still benefitting from wide 1m-3m spread on debt-ceiling concerns.
I am keeping existing I-Bonds and 5-yr TIPS for now, but no…
The fed fund (overnight) rate is 4.75-5.00% (likely to change on 5/3/23). So, these rates should be viewed in that context.
The 1m T-Bill yield fell to 3.36% on 4/21/23, but yesterday (EOD, 4/27/23) it was 4.27%, low compared to the fed funds but n…
@fred495, the FDIC insurance should cover it. But if high rate CD, it may be redeemed and replaced by a new, lower rate CD - that is a part of the fine print.
You probably know that a government bailout may wipeout all equity, while a private bailout or wind down may retain some value for equity (for example, Silvergate/SI is still trading as a zombie). In situations like this, debt may be better and may …
My first brokerage a/c in the 1970s was at Merrill Lynch and I was paying almost 6-7% commission per trade, 12-14% for a roundtrip. I had to call my assigned broker and he was hard to get hold of. As his office was on the way to work, I will just wr…
Some Monday Morning quarterbacking - FRC should have been closed in the 1st round of bank failures (closed SVB, Signature; voluntary wound down of Silvergate). Then it got a temporary private bailout - that didn't work in hindsight. Or, it should ha…
Secondary market for CDs is illiquid. So, premature sellers get good haircuts, but that is great if you are the buyer. Of course, these opportunities may be quire irregular.
