Hacker News new | ask | show | jobs
by JumpCrisscross 934 days ago
> 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...
1 comments
dumbo-octopus 934 days ago
> 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?

link
JumpCrisscross 934 days ago
> 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.

link