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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 stori
by 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 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...)