Good article, I've read and read but yet don't fully understand "Free Cash Flow Payout".
Is a lower % better and does it represent the % of free cash (after costs and CapEx) used to pay the dividend? If this number is low,what do they use the remaining excess for?
Why I'm Covering My Short Against iShares Barclays 20+ Year Treasury Bond [View article]
Baboon, thanks for the idea of shorting EDV.
Looks good as zero coupon so clean play on inverse of long bond. But, neither of my brokers Fidelity & TDAmeritrade would allow me to short it as too thinly traded/not enough shares in house.
So today I bought 3X TMV, which I suspect will errode over time like my TBT has.
Why I'm Covering My Short Against iShares Barclays 20+ Year Treasury Bond [View article]
Good points.
In July 2008 I thought US 30 year Treasury Bond (^TYX) interest rates @ 4.3% had bottomed out and so bought TBT @ $69 avg.
I was wrong, (or to be kind, too early). US Gov't 30 T-Bond is now 3.96% and my TBT has risen from it's lows to $48, a 30% drop, ouch.
I have not done the analysis, but I think have not gotten fair returns from TBT, if 30 yr T-Bond goes back to 4.3% where I started, TBT will not return to $69.
As for shorting TLT, it may be more correlatable, but still seem to only get 1/3 full value vs if you could short ^TYX directly, presumably as TLT is not a stripped bond and thus earns coupons/interest? Plot shown here where shorting TLT gained you 15% vs gain in ^TYX is 45%: finance.yahoo.com/echa...=^tyx;range=ytd;compar...
Due to Fed QE, I'd like to short long US bond and buy FXE, any advice on how best to do this is appreciated.
My kids love rollercoasters in Six Flags Dallas/Fort Worth here in Texas. Just checked and SIX shares were on Monday delisted from NYSE, presumably as at 16 cents, and now listed OTC BB (Over the Counter Bulletin Board) not sure what that is or how to trade it if I feel courageous enough.
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Is a lower % better and does it represent the % of free cash (after costs and CapEx) used to pay the dividend? If this number is low,what do they use the remaining excess for?
Thanks for advice/support.
Why I'm Covering My Short Against iShares Barclays 20+ Year Treasury Bond [View article]
Looks good as zero coupon so clean play on inverse of long bond. But, neither of my brokers Fidelity & TDAmeritrade would allow me to short it as too thinly traded/not enough shares in house.
So today I bought 3X TMV, which I suspect will errode over time like my TBT has.
Why I'm Covering My Short Against iShares Barclays 20+ Year Treasury Bond [View article]
In July 2008 I thought US 30 year Treasury Bond (^TYX) interest rates @ 4.3% had bottomed out and so bought TBT @ $69 avg.
I was wrong, (or to be kind, too early). US Gov't 30 T-Bond is now 3.96% and my TBT has risen from it's lows to $48, a 30% drop, ouch.
I have not done the analysis, but I think have not gotten fair returns from TBT, if 30 yr T-Bond goes back to 4.3% where I started, TBT will not return to $69.
As for shorting TLT, it may be more correlatable, but still seem to only get 1/3 full value vs if you could short ^TYX directly, presumably as TLT is not a stripped bond and thus earns coupons/interest? Plot shown here where shorting TLT gained you 15% vs gain in ^TYX is 45%: finance.yahoo.com/echa...=^tyx;range=ytd;compar...
Due to Fed QE, I'd like to short long US bond and buy FXE, any advice on how best to do this is appreciated.
Buyer Beware: 30 Biggest Bankruptcy Risks [View article]
Longer recession = more bankruptcies.