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That has to be an inflation adjusted yield, right? Why would anyone do anything remotely risky for such terrible returns? You can almost find government bonds w
by Someone1234 4y ago
That has to be an inflation adjusted yield, right? Why would anyone do anything remotely risky for such terrible returns? You can almost find government bonds with similar average yields.
- Macha 4y agoWeren't the rates on government bonds negative if you were a large investor like a bank?
- zzleeper 4y agoNope! I got a 2.0% mortgage in 2021 (no points or anything) and the bank then turned around and sold it to Freddie who paid them 1.7% (so the bank made a nice 0.3% just for originating the loan). Then Freddie packed my loan and sold it to others for something likely to be below 1.7%...
- dahfizz 4y ago>You can almost find government bonds with similar average yields. Not a few years ago. T-Bills were paying like 0.1% in 2021[1] [1] https://home.treasury.gov/resource-center/data-chart-center/interest-rates/TextView?type=daily_treasury_bill_rates&field_tdr_date_value=2021 https://home.treasury.gov/resource-center/data-chart-center/...
- kgwgk 4y agoAnd 10-year bonds were well below 1%. https://fred.stlouisfed.org/series/DGS10 https://fred.stlouisfed.org/series/DGS10