Bond investors are about to get a new toy as the Treasury announces plans to introduce...


Bond investors are about to get a new toy as the Treasury announces plans to introduce floating-rate notes to its debt sales this year.

Comments (4)
  • Whitehawk
    , contributor
    Comments (3121) | Send Message
     
    Smart move - more product choices for selling debt. Next up: CDOs, rated by Moody's.
    6 Feb 2013, 11:51 AM Reply Like
  • Brad Kenagy
    , contributor
    Comments (2941) | Send Message
     
    Last Paragraph " In strategies two and three, the introduction of a 20-year and 50-year bond, respectively, is explored."

     

    A 50 year treasury bond!!, now that is some serious duration risk lol.
    6 Feb 2013, 12:33 PM Reply Like
  • Interesting Times
    , contributor
    Comments (15149) | Send Message
     
    Don't trust this one bit!!
    6 Feb 2013, 01:21 PM Reply Like
  • Brad Kenagy
    , contributor
    Comments (2941) | Send Message
     
    Just like someone running a ponzi scheme, looking for new investors to cover what they owe to other investors. The scheme can only go until there is a market shock, like what happened to Madoff. Madoff only crashed because of the massive redemption's that occured because of the credit crisis, if there was no credit crisis, who knows how long Madoff's scheme would have gone on.

     

    The government can keep issuing debt, borrowing from Social security, introducing new financial products, etc, only as long as there is Not a market shock in the bond market. It's not a question IF it will happen, but When it will happen.
    6 Feb 2013, 01:32 PM Reply Like
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