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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?


To: pater tenebrarum who wrote (18520)6/25/1999 7:51:00 AM
From: Haim R. Branisteanu  Read Replies (1) | Respond to of 99985
 
Heinz I am buying treasury strips at 6.5% to 6.6% yields.

Most strips around 12 to 14 year maturity are yielding this interest.Price around $370 to $450 per bond strip.

I may think to establish a spread by selling the underlying bond. Priced at $1340 to $1400 per bond. (depending on wen they were issued be careful to buy/sell same date of maturity) Leverage 2 to 1.

Yearly cost - apx. 3.3% upside potential can be substantial and well depends on interest rates <G>

BWDIK
Haim