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by xscott 930 days ago
Are these the bonds where you can only buy $10k to $15k per year?

If so, that doesn't solve the problem for anyone who has the problem.

2 comments

> Are these the bonds where you can only buy $10k to $15k per year?

No, they're bog-standard Treasuries and, if you're particularly paranoid about inflation, TIPS [1].

Modern currencies segregate the store of value and medium of exchange functions. For the dollar, that means Treasuries and deposits.

[1] https://en.wikipedia.org/wiki/United_States_Treasury_securit...

> A 2014 study found that conventional U.S. Treasury bonds were persistently mispriced relative to TIPS, creating arbitrage opportunities and posing "a major puzzle to classical asset pricing theory."[22]

You seem to know things, is that arbitrage hustle still producing?

> is that arbitrage hustle still producing?

I don't have a good source of inflation swap prices, but I would assume it's persisted. It's not an easy trade to do leveraged, since your assets are marked to market. And there are natural buyers of vanilla Treasuries for collateral purposes.

You're thinking of I-bonds but anyone can buy TIPS in effectively unlimited quantities.