Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Bonds, Currencies, Commodities and Index Futures -- Ignore unavailable to you. Want to Upgrade?

To: Patrick Slevin who wrote (9228)	1/25/2006 7:45:58 AM
From: robert b furman	Read Replies (2) \| Respond to of 12411

Hi Pat, Treasury Inflation Protected Securities. They guarantee a rate yield,but do not pay a coupon interest payment.I'm only familiar of them - never bought one. Supposedly it is a purer play on price,and accordingly gives one a better chance at making the income eligible for capital gains treatment. If you could time the feds rate hikes at the peak,as they invert the curve in an effort to stop an overheated economy,(like in January of 2000) they appreciate in price as the fed slowly dropped rates,to create a soft landing or possible recession. The fed auctioned 10 billion yesterday and 56% of them were bought directly by people or governments without dealer participation. One can buy them without paying a commission(or at least much of a commission) directly from the government.Usually they are much more oversubscribed. Dealers stayed away from them as they anticipate a rate increase this month in only a week. Plenty of time to learn more of them. Only know I wished I had used them after I sold out of my tech holdings in early 2000. Hindsight always 20/20.<smile> Bob