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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?


To: William H Huebl who wrote (42778)8/7/1999 10:55:00 AM
From: Haim R. Branisteanu  Read Replies (1) | Respond to of 94695
 
To all - for a while I was trying to make a point that treasury strips are an interesting investment if properly traded.

The 2016 to 2018 strips yield now around 6.65% and have a very wide spread over the 10 year and 30 year bond.

Prices range from $285 to $350 per $1000 face value depending on maturity and the specific issue.

Further those bonds can be nicely hedged with interest options traded on the CBOE TNX, TYX. The premiums are quite adequate and properly applied yield can increase to the 8% to 10% range net of commission.

quote.cboe.com

Worth trying.

BWDIK
Haim