4 ms·

Are they Venezuela or Zimbabwe?

• mrDmrTmrJ 4y ago
  US 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 ago
    Sure, back then. But I’m guessing these are not 50+ year maturities still paying out.
  • everybodyknows 4y ago
    Know 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...)