The Treasury Department set at zero the fixed portion of the yield on Inflation bonds, guaranteeing that new buyers will never earn more than the rate of inflation for the 30-year life of their investment.
bonds
Dividend Stocks for Income? Not So Fast
The furious search for an income stream in this low-rate environment is leading many retirees down a deceivingly risky path, and it’s not working out all that well.
What Would a U.S. Government Default Feel Like For the Average American?
A compromise between the budget proposals being batted around by President Obama and House Speaker John Boehner will, hopefully, be reached before the federal government defaults on any debt.
But what if the August 2 deadline to …
Running Away from Treasuries
If, as some are saying, the long-term safety of U.S. Treasury bonds can no longer be counted on, the rules of investing will need to be rewritten.
Just How Rotten Were Morgan Stanley’s Mortgage Deals?
- Eh tu, Morgan Stanley? The Wall Street Journal is reporting this morning that the Securities and Exchange Commission is looking into whether Morgan Stanley, too, broke securities laws when it structured mortgage securities and then made money by betting against them. The SEC already has brought a similar case against Goldman.
- But
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Does Michael Lewis’ Harvard Thesis Exonerate Goldman?
Back in December, the New York Times ran a story about Goldman and some collateralized debt obligations they underwrote. Turns out the CDOs, which were constructed by pooling together other bonds, performed badly. Really, really badly. The thrust of the Times piece was that Goldman routinely created CDOs with the worst mortgage bonds it …
March Madness: Stocks Are Up 68%
Last March we all thought the world economy—not to mention our cherished lifestyle —was headed for the trash basket. The stock market had plunged, retirement plans were ruined, and few people cared that equities looked dirt cheap. But here we are one year later and the stock market is up 68%, rampant fear has morphed into uneasy …
Should bond investors care about prices?
A reader asked, in reference to my column on the “Bond Bust Ahead,”
As interest rates climb, bond prices drop. I understand that part. But, for an “investor” who owns bonds to maturity how does this translate into losses? I still get the same coupon payment and my principal at the end of the term.(Agreed that with higher inflation my
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New column: Bond bust ahead
I’ve got a new column online and in the issue of TIME with the cover story on Detroit. It’s about bonds.
