RobH

'Don't Fight the Fed' ETFs: Time to Reconsider Mortgage Debt Investments?

MBB has a duration of 1.43 years compared to 15.19 years for TLT. Thus TLT has a much greater exposure to the risk of rising interest rates. (And I wouldn't count on the Fed to save you by keeping rates down, as they seem to be concentrated in the 2-to-10 year sector. After all, they realize that the government borrowing money at 3% for 30 years is a steal and don't want to put a stop to it.)

On Mar 22 11:15 AM F. Bradeen wrote:

> Not that I am interested in either one, but an investor can get a
> 3.3% yield from TLT (30 year treasuries). Why bother with MBB with
> obviously higher risk? What am I missing?