GSE Bonds

[bubba99]

I am seeing some 6% (6 to 7 year strips) begining to show up on TDAmeritrade. Compared to the 1% or 2 % I am getting now on CD’s, that seems pretty good.

The hitch is that the bonds are treasury’s backing Fannie and Freddie. Are the current rules that the US Government guarantees the GSE bonds, or are the 6% returns because they do not?

Anyone from Piggs have any thoughts on GSE Strips?

[clearfund]

Bubba – The GSE Strips are guaranteed so no worry there. The reason for the interest rate is that because they are a zero-coupon note where you receive interest and principal at the maturity date.

Thus, they nearly always trade at a discount to the face value of the note to account for the lower IRR, etc of the zero coupon.

We invest/trade in this general area and are achieving north of 15% (some trades net us 40%+/yr) annual cash flow with investments back by GSE Bonds which are all guaranteed.

We trade in/out of the GSE Bonds around dividend dates so we capture excess levels of dividends with very short holding periods/exposure.

[clearfund]

Bubba – The GSE Strips are guaranteed so no worry there. The reason for the interest rate is that because they are a zero-coupon note where you receive interest and principal at the maturity date.

Thus, they nearly always trade at a discount to the face value of the note to account for the lower IRR, etc of the zero coupon.

We invest/trade in this general area and are achieving north of 15% (some trades net us 40%+/yr) annual cash flow with investments back by GSE Bonds which are all guaranteed.

We trade in/out of the GSE Bonds around dividend dates so we capture excess levels of dividends with very short holding periods/exposure.

[clearfund]

Bubba – The GSE Strips are guaranteed so no worry there. The reason for the interest rate is that because they are a zero-coupon note where you receive interest and principal at the maturity date.

Thus, they nearly always trade at a discount to the face value of the note to account for the lower IRR, etc of the zero coupon.

We invest/trade in this general area and are achieving north of 15% (some trades net us 40%+/yr) annual cash flow with investments back by GSE Bonds which are all guaranteed.

We trade in/out of the GSE Bonds around dividend dates so we capture excess levels of dividends with very short holding periods/exposure.

[clearfund]

Bubba – The GSE Strips are guaranteed so no worry there. The reason for the interest rate is that because they are a zero-coupon note where you receive interest and principal at the maturity date.

Thus, they nearly always trade at a discount to the face value of the note to account for the lower IRR, etc of the zero coupon.

We invest/trade in this general area and are achieving north of 15% (some trades net us 40%+/yr) annual cash flow with investments back by GSE Bonds which are all guaranteed.

We trade in/out of the GSE Bonds around dividend dates so we capture excess levels of dividends with very short holding periods/exposure.

[clearfund]

Bubba – The GSE Strips are guaranteed so no worry there. The reason for the interest rate is that because they are a zero-coupon note where you receive interest and principal at the maturity date.

Thus, they nearly always trade at a discount to the face value of the note to account for the lower IRR, etc of the zero coupon.

We invest/trade in this general area and are achieving north of 15% (some trades net us 40%+/yr) annual cash flow with investments back by GSE Bonds which are all guaranteed.

We trade in/out of the GSE Bonds around dividend dates so we capture excess levels of dividends with very short holding periods/exposure.

[NeetaT]

“We invest/trade in this general area and are achieving north of 15% (some trades net us 40%+/yr) annual cash flow with investments back by GSE Bonds which are all guaranteed.”

Who is we and how do I participate?

[NeetaT]

“We invest/trade in this general area and are achieving north of 15% (some trades net us 40%+/yr) annual cash flow with investments back by GSE Bonds which are all guaranteed.”

Who is we and how do I participate?

[NeetaT]

“We invest/trade in this general area and are achieving north of 15% (some trades net us 40%+/yr) annual cash flow with investments back by GSE Bonds which are all guaranteed.”

Who is we and how do I participate?

[NeetaT]

“We invest/trade in this general area and are achieving north of 15% (some trades net us 40%+/yr) annual cash flow with investments back by GSE Bonds which are all guaranteed.”

Who is we and how do I participate?

[NeetaT]

“We invest/trade in this general area and are achieving north of 15% (some trades net us 40%+/yr) annual cash flow with investments back by GSE Bonds which are all guaranteed.”

Who is we and how do I participate?

[patientrenter]

[quote=NeetaT]… Who is we and how do I participate?[/quote]

We is me. Participate by sending me a cashier’s check for $300,000 🙂

[patientrenter]

[quote=NeetaT]… Who is we and how do I participate?[/quote]

We is me. Participate by sending me a cashier’s check for $300,000 🙂

[patientrenter]

[quote=NeetaT]… Who is we and how do I participate?[/quote]

We is me. Participate by sending me a cashier’s check for $300,000 🙂

[patientrenter]

[quote=NeetaT]… Who is we and how do I participate?[/quote]

We is me. Participate by sending me a cashier’s check for $300,000 🙂

[Author]

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