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Are these the bonds where you can only buy $10k to $15k per year? If so, that doesn't solve the problem for anyone who has the problem.
by xscott 3y ago
Are these the bonds where you can only buy $10k to $15k per year?
If so, that doesn't solve the problem for anyone who has the problem.
- khuey 3y agoYou're thinking of I-bonds but anyone can buy TIPS in effectively unlimited quantities.
- JumpCrisscross 3y ago> Are these the bonds where you can only buy $10k to $15k per year? No, they're bog-standard Treasuries and, if you're particularly paranoid about inflation, TIPS [1]. Modern currencies segregate the store of value and medium of exchange functions. For the dollar, that means Treasuries and deposits. [1] https://en.wikipedia.org/wiki/United_States_Treasury_security#TIPS https://en.wikipedia.org/wiki/United_States_Treasury_securit...
- dumbo-octopus 3y ago> A 2014 study found that conventional U.S. Treasury bonds were persistently mispriced relative to TIPS, creating arbitrage opportunities and posing "a major puzzle to classical asset pricing theory."[22] You seem to know things, is that arbitrage hustle still producing?
- JumpCrisscross 3y ago> is that arbitrage hustle still producing? I don't have a good source of inflation swap prices, but I would assume it's persisted. It's not an easy trade to do leveraged, since your assets are marked to market. And there are natural buyers of vanilla Treasuries for collateral purposes.