热门标签

环球ug代理开户(www.ugbet.us):Single-bond ETFs solve some key investing problems

时间:3周前   阅读:3   评论:4

皇冠最新登陆网址www.hg108.vip)实时更新发布最新最快的皇冠最新登陆代理线路网址、皇冠最新登陆会员线路网址、皇冠最新备用登录网址、皇冠最新手机版登录网址。

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.

,

环球ug代理开户www.ugbet.us)开放环球UG代理登录网址、会员登录网址、环球UG会员注册、环球UG代理开户申请、环球UG电脑客户端、环球UG手机版下载等业务。

,

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:新2注册(www.hg108.vip):Most Asian markets down as traders eye key Powell speech

下一篇:2022年8月16日江西新冠肺炎疫情情况(附全国中高风险地区名单)

网友评论

  • 2022-08-31 00:28:00

    Brent crude futures fell 68 cents, or 0.7%, to $95.91 a barrel by 0658 GMT after settling 3.1% higher on Thursday. U.S. West Texas Intermediate crude was at $89.81 a barrel, down 69 cents, or 0.8%, following a 2.7% increase in the previous session.盲猜好看

  • 2022-10-20 00:46:56

    “What we want is the electric car, not the battery. For Tesla, we want them to build electric cars in Indonesia,” President Joko Widodo said in an interview with Bloomberg News’ editor-in-chief John Micklethwait.get到好看的点了