Fixed Income Focused Discussion

panda

panda

Well-known member
Explore topics regarding muni bonds, treasury bonds, corporate bonds, convertible bonds, interest rate outlook, macroeconomic trends, REITS, and mortgage REITS.
 
I would like to ask this question to the Irvine audience....

What do you know about long term treasury bonds and AAA Corporate bonds?

Panda
 
Panda said:
I would like to ask this question to the Irvine audience....

What do you know about long term treasury bonds and AAA Corporate bonds?

Panda
Click to expand...

Would like to answer your question , but it is very broad

If you mean from an individual investor perspective , I would strongly recommend staying away from long maturity / long duration bonds , be they corporate or treasuries . These are best suited for corporate and state pensions (defined benefit) where they need to immunize/ match their long term liabilities .

For an investment horizon that long, you are almost always better off in a broad equity index fund .

I do own municipal bonds  but they are of the More shorter / intermediate variety and used for tax free income generation (esp the CA domiciled ones)
 
Fortune,
The 10 year treasury yield currently sits at 3.189%. What is the relation between the 10 year treasury yield and long term treasury bonds and AAA Corporate bonds?

fortune11 said:
Panda said:
I would like to ask this question to the Irvine audience....

What do you know about long term treasury bonds and AAA Corporate bonds?

Panda
Click to expand...

Would like to answer your question , but it is very broad

If you mean from an individual investor perspective , I would strongly recommend staying away from long maturity / long duration bonds , be they corporate or treasuries . These are best suited for corporate and state pensions (defined benefit) where they need to immunize/ match their long term liabilities .

For an investment horizon that long, you are almost always better off in a broad equity index fund .

I do own municipal bonds  but they are of the More shorter / intermediate variety and used for tax free income generation (esp the CA domiciled ones)
Click to expand...
 
It is pretty small yield pickup in 30year  treasury from 10y - but I guess you can already see that from google search

Aaa corporate bonds are an endangered species as more and more companies feel comfortable migrating down to A or BBB area .

What exactly are you trying to solve for ? Maybe I can frame my answer better if I know that
 
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