热门标签

手机新2管理端:Single-bond ETFs solve some key investing problems

时间:2周前   阅读:1   评论:1

澳5官网www.a55555.net)是澳洲幸运5彩票官方网站,开放澳洲幸运5彩票会员开户、澳洲幸运5彩票代理开户、澳洲幸运5彩票线上投注、澳洲幸运5实时开奖等服务的平台。

Bonds are complicated, which is why a lot of people – including hedge funds – don’t trade them. It’s a lot easier to buy shares of something that trades on an exchange and not deal with the institutional-sized lots, coupon payments and messy cash flows associated with fixed-income assets.

IT was bound to happen. Following the launch a few weeks ago of some exchange-traded funds (ETFs) focusing on a single stock, one issuer has come up with single-bond ETFs.

These three new funds will hold either the benchmark three-month US Treasury bill, two-year US Treasury note or 10-year US Treasury note.

I described single-stock ETFs as financial mutants that benefit nobody, but single-bond ETFs are a surprisingly good idea. In fact, I’m a bit shocked that nobody thought of it until now.

The primary benefit of these funds as I see it is that they give both retail and institutional investors a way to easily trade in Treasury securities, which is revolutionary.

Bonds are complicated, which is why a lot of people – including hedge funds – don’t trade them.

It’s a lot easier to buy shares of something that trades on an exchange and not deal with the institutional-sized lots, coupon payments and messy cash flows associated with fixed-income assets.

Taking a single bond and putting it into an ETF wrapper solves these problems for investors.

,

手机新2管理端www.hg108.vip)实时更新发布最新最快最有效的手机新2管理端网址,包括新2手机网址,新2备用网址,皇冠最新网址,新2足球网址,新2网址大全。

,

It’s not hyperbole to say the implications are huge, and that these funds have the potential to disrupt the ETF industry as well as futures exchanges.

Even for the biggest institutions, let alone retail investors, there is no easy way to buy a specific Treasury note or bond.

To do so would entail opening an account on the government’s TreasuryDirect platform and buying odd lots of bonds directly from the Treasury Department at auction, which you would then have to hold to maturity.

You could also gain exposure by purchasing bond futures, but then you are dealing with margin issues, basis risk (the spread between cash bonds and futures) and figuring out the cheapest-to-deliver bond.

Another option is to buy an open-end, intermediate-term Treasury mutual fund, but unlike with an ETF you would only have “liquidity” at the end of each day when mutual fund prices are updated.

In recent years, the most popular way to gain exposure to the Treasury market was through the iShares 20+ Year Treasury Bond ETF.

But the ETF holds a portfolio of bonds across a range of maturities, from 20 to 30 years. As such, the characteristics of the ETF change over time, which sort of diminishes the safety and predictability aspect of owning government bonds.

In other words, for all the interest in the iShares ETF, with millions of shares and hundreds of thousands of related options contracts traded, it is a portfolio with risk that is not constant.

上一篇:Telegram游戏破解(www.tel8.vip):FBM KLCI maintains lead following positive GDP result

下一篇:皇冠平台出租(www.hg108.vip):“武极限”中国武术散打搏击巡回赛发布会在京举办

网友评论

  • 2022-09-21 00:20:27

    有研究报告显示,针对校园枪击进行演练,可能造成消极和令人恐惧的学习环境,给儿童带来身心创伤。而对经历过校园枪击事件的幸存者来说,所受“沉默伤害”会更加持久。出新的我一起追