4 ms·
Which market? I own some bonds that yields 8%.
by xorcist 4y ago
Which market? I own some bonds that yields 8%.
- chollida1 4y agoYield to maturity is far different that yearly yield. though it is possible to find some bonds that have an annual yield of 8%. Though no one would expect them all to make it maturity without any credit issues.
- bombcar 4y agoYou can find a very few. But they are limited in some way, and almost always government-funded. https://treasurydirect.gov/savings-bonds/i-bonds/i-bonds-interest-rates/ https://treasurydirect.gov/savings-bonds/i-bonds/i-bonds-int... iBonds hit above 8% return in a year if you bought at just the right time this year, IIRC. Of course, if you calculate real return then you will have a sad.
- arcticfox 4y agoThere’s also a very real counterparty risk in bonds that need to give 8%. Inflation bonds are kind of an exception there, since if inflation is 8% the market should be doing much better than that on average.
- NotYourLawyer 4y agoAre they Venezuela or Zimbabwe?
- mrDmrTmrJ 4y agoUS federal funds rate hit 19.39 percent in April 1980. As a result long-term state bond did very well for their owners as inflation came down. My mom told stories about "Massachusetts Nines" with legendary 9% yields. Utilities and co-ops issued ~15% paper which also did extremely well for those who purchased it in the early 80s.
- NotYourLawyer 4y agoSure, back then. But I’m guessing these are not 50+ year maturities still paying out.
- everybodyknows 4y agoKnow offhand what the 30-year yielded back in '80? For reference, the 30 is now at about 100bp less than shorter treasuries: https://www.marketwatch.com/market-data/rates https://www.marketwatch.com/market-data/rates
- mcguire 4y ago~11% (https://www.govinfo.gov/content/pkg/ERP-2012/pdf/ERP-2012-table73.pdf https://www.govinfo.gov/content/pkg/ERP-2012/pdf/ERP-2012-ta...)