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.

Non-Tech : Income Investing -- Ignore unavailable to you. Want to Upgrade?

To: Affinity4Investing who wrote (49504)	3/6/2023 12:36:04 PM
From: Smart_Asset	Read Replies (2) \| Respond to of 52144

Re: Thanks for responding. <<Isn't the YTW difference related to the Next Call Date? NCD on MA7 is 9/27/23 NCD on TSB is 4/28/23>> <<My vlu(very limited understanding) would be yes. So then a strategy might be to take the TSB4 at ytm 6.817% and ytw 1.556% with the conviction that rates are going up which is 100% on CME Fed watch and the belief in Powell et al who say rates need to remain high in place for some unspecified 'long' amount of time ergo that bond is not called. If TSB4 is not called for exactly one year the return should be 6.817% or very close. If that's how rates play out then the ytw or 1.556% is meaningless and one would gain the extra percentages above the 'less risky' MA7 which is at 5.988% ytm and 5.897% ytw. Seems a very good risk/reward to me if I'm reading it right. When I looked it was minimum 25k so at 1yr the TSB4 is 6.817 x 25,000 = $1,704.50 MAt is 5.988 x 25,000 = $,1497 A $297.50(dinner for 4) difference.