safest place to park some cash with interest? (junk bonds, fund, trading)

[flamadiddle]

Anything safe offering better rates than CD's today? I see CD's offering upwards of 5%.

[mathjak107]

i use treasury etfs like sgov and shy

[Nodpete]

T-bills !

[mathjak107]

the problem i have with t bills is it’s a pain to keep them in the duration i would want them .

if i buy say a 6 month t bill , everyday it gets shorter and shorter so i no longer have a 6 month t bill .

bond funds and etfs strive to keep the average duration in a particular range so for my purposes it works better..


same with my portfolio. i use long term bonds with about an average duration of 17 years ..

for me to keep them there would take quite a bit of monitoring and trading as the average duration shortened .

with funds they do it so it’s easy.

the long term bonds and short term bonds form a barbell in my portfolio that give it an interest rate sensitivity somewhere around an intermediate term bond

[hikernut]

Choose between CDs and Treasuries. You can see current Treasury yields here:

https://home.treasury.gov/resource-c...e_month=202305

If this is a taxable account, note that there's no state income tax on Treasury interest.

[Nodpete]

I like T-bills because at my age I don't want any real long term investments. I just buy them at intervals so that there are always some invested. Then I'll roll over or re-invest at a different length. I may need the money if something happens so I don't want it tied up too long. I do have some I-bonds but they will reach full maturity at 5 years. That's about as long out as I'll go.

[SanJac]

Originally Posted by mathjak107

i use treasury etfs like sgov and shy

I really don’t understand how these ETFs work. How long do you have to hold before you get the return of treasuries?

[sitonmywhat]

Originally Posted by flamadiddle

Anything safe offering better rates than CD's today? I see CD's offering upwards of 5%.

I own junk bonds. All of the talking heads advise toward Investment Grade. A CD in the 5% range is certainly very attractive. FDIC insured. Nothing else is, except with T-bills, backed by the gov't. And SOMEDAY, the US gummint might actually get their **** together.

For political reasons, I do not recommend Israel Bonds. But years ago, I bought one. It was a 10-year "zero coupon" thing. Almost doubled my money. Rates there are not quite as high as when I did that, back in 2003. Anyway, here's the link. They have never defaulted. People say, "keep your conscience out of your investing decisions." It's all in US dollars.
https://www.israelbonds.com/Offering...ent-Rates.aspx

[moguldreamer]

Credit Default Swaps are now more expensive on US debt than on that of Mexico and Brazil.

Pause and let that sink in for a moment.

[mathjak107]

the fact is the credit default swap markets is betting on a delay if things don’t resolve , not a default .

in the credit default swap betting parlor a delay can give you a big win even if paid the next day