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My understanding was they they were 10 year T notes @ ~1%, which is kind of where I get lost. There are way better ways to "yield chase" than this, why are we
by Zetice 4y ago
My understanding was they they were 10 year T notes @ ~1%, which is kind of where I get lost.
There are way better ways to "yield chase" than this, why are we presuming greed here when it seems just as likely to be incompetence?
- jmathai 4y agoMy guess is because this is supposed to be a core competency of a bank. If a doctor unknowingly took out your heart instead of your gall bladder, it may be incompetence but that's unlikely.
- Zetice 4y agoIsn't this exactly what Hanlon's Razor was invented for?
- oarabbus_ 4y ago>There are way better ways to "yield chase" than this, Such as what? There are not, if you have $50-100B. Your options as a bank are either treasury bonds or mortgage-backed securities. As a private sector investor (e.g. Warren Buffett) you have the additional option of equity investing, but it will take many years to move that much money.