Seeking Alpha

swaps » Comments » DB

  • Deutsche Bank Breaks the Buck [View article]
    If you contemplate the debt oblilgations of the U. S. government, are you sure Treasuries will always prserve principal?

    If a Treasury bond bought today is worth $1,000 and it is priced to yield 3 percent in one year, then you get back $1,030 - keeping it simple without the compounded annual percentage rate.

    But if a "run" on the dollar drops the value of a dollar from the equivallent $1.00 in yen or sterling or even the dollar itself to a revised value of 95 cents - have you protected principal?

    You have in dollar terms but have you in absolute terms?
    Sep 04 14:29 pm |Rating: 0 0 |Link to Comment
More on DB by swaps
Comments by Ticker
AA, AAUKY.PK, ABB, ABCW, ABK, ABT, ACL, ADCT, ADM, ADRE, AFL, AGIBY.PK, AHBIF.PK, AIB, AIG, AIV, AKP, ALU, AMSC, AN, APOG, ASML, AXP, AYN, BA, BAC, BDN, BFZ, BGZ, BHI, BLC, BLJ, BND, BP, BPZ, BRGXF.PK, BRK.A, BRP, BSC, BTM, BWX, C, C.P, CAT, CBY, CEW, CFC, CHK, CIEN, CIT,
swaps'
Comments Stats
265 comments
Rating: 373 (551 - 178 )