iShares Barclays 1-3 Year Treasury Bond Fund (ETF)
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Why Treasury Funds Are Dangerous
By Timothy Green - March 28, 2013 | Tickers: SHY, TLT, IEI, IEF
Over the past 30 years or so US treasury bond yields have been in an almost constant decline. Since bond yields and bond prices move in opposite directions this decline has led to ever-increasing bond prices and a multi-decade bull market in bonds.
30-Year Treasury Bond Yield data by YCharts
But what happens if interest rates begin to rise again? Clearly bond prices would decline, but by how much? Warren more »
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The Updated Barbell Strategy
By Jeff Stouffer - August 27, 2012 | Tickers: SHY, IEI, IEF
Financial advisors and investors of fixed income strategies have for a very long time used a tried and tested method to “immunize” or protect a fixed income portfolio from interest rate changes.
The Barbell Strategy basically has a portion of assets held in bonds that are of a certain credit quality placed between a portion that has a short term maturity and a portion that has a long term maturity more »
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Is the Risk Free Premium Dead?
By Peter Pham - June 29, 2012 | Tickers: SHY, LQD, TUZ
If there is one thing that the events of the past few months have taught us it is that any mathematical model based on the default risk premium of a government bond is not zero. While millions of MBA students the world over are being inculcated in this concept, the truth is that it is as close to reality as any current Greek budgetary prediction. We accept that there is more »
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Take a Spring Break From Stocks
By George Clausen - April 13, 2012 | Tickers: STIP, SHY, AGG, TIP, MDY
Most market news is negative lately. Maybe it’s time for the stock market to take off for spring break. A little sun and beach make a world of difference.
The bad news adds extra meaning to the old stock market adage: “Sell in May and go away.” Make that mid-April.
Downgrades are happening again. On April 5, Egan Jones Rating Company downgraded the U.S. government debt from AA more »