Mike, See my note above. I am not thrilled about locking in these rates, except for the short term bounce. However, here are ways to do it:
1. Buy long bonds.
2. Buy long bond futures.
3. Buy a deep in the money long bond futures call. This one requires the least cash up front.
4. My favorite, buy CEF preferreds. True, they are not Treasuries, but Gabelli's funds have preferreds yielding over 7%. These represent less than 1/3 of the fund's cap, so their diversified holdings have to go down 67% before there is any impact on the preferred shareholder. The one I like best is the preferred on Gabelli Convertible. Here we have a fund that buys convertible bonds, which are much safer than stocks, with all of its assets guaranteeing a small preferred issue. BTW, the preferred itself is not convertible and a lot of folks make that mistake. The downside is that these things have no maturity date, so you'd better be right on rates.
MB |
