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Treasuries are often used as a "risk-free" asset to adjust a portfolio in order to meet a predetermined level of risk. Someone who works in finance can probably
by robgering 13y ago
Treasuries are often used as a "risk-free" asset to adjust a portfolio in order to meet a predetermined level of risk. Someone who works in finance can probably tell us more.
- selectodude 13y agoThere the "risk free" aspect, but there also just really isn't much else in the world that you can buy 100 billion dollars of in just a few years. Even the entirety of taxable property in Manhattan can be had for just over twice that amount of money. Not to mention good luck trying not to move the market while buying 100 bn of anything.
- seanmcdirmid 13y agoExactly. Treasuries are just so useful for stashing money. Even if the rate of return is below inflation, the Chinese really have no choice when dealing with their dollar reserves. Treasuries also make the dollar attractive in the first place, since the USA is more than happy to act as a debtor of last result resort....remember money can only be saved if it's borrowed!