It triggers fear yes, because people over-complicate it.
A 4% bond will always pay 4% period.
The only thing that changes is what is the penalty if you sell it early.
PS LOL Remember Risky Business?
I was FINRA registered for over a decade. Made a bold move for clients, buying a bunch of 5-6% coupon bonds with an 11-13 month duration at 500-550 to par. I say bold because the compliance team somehow didn’t understand that bonds with the full backing of the Treasury weren’t going to default, even if their issuer was AIG.
Ahh so you are one of the guys who “jargons it up” to make it look complicated LOL.
I buy a $100 bond that pays 4% interest.
If I hold it until maturity it pays my $100 back plus 4% annualized interest.
That does not change no matter what the Fed does. No matter what the market does.
If I try to sell early if I trade bonds back and forth every day
well, then I still get 4% by holding but the selling/day-trading part is affected.
If I am trying to sell a 4% thing to a guy who can get 8% via buying someone else’s thing he is not going to be a willing taker.
He sure as death-and-taxes is not going to give me $100 for a 4% thing when he can spend $100 to get an 8% thing from someone else.
No, my job was to turn that jargon into plain English for people generally not experienced with the boilerplate legalize in the official sales materials.
Exactly, and in the inverse. Someone with an 8% coupon yield isn’t going to take $100 when the current coupon is 4% on new issues.
A modern tulipmania, my, my. I doubt the average European can afford this. And to the ones who can, 2000 Pound Sterling doesn’t mean anything.
Adn how was it last time?
The average peasant couldn’t afford the tulips and most of the people who speculated were still not broken for life.
I think they were actually cultivating various tulips, which anyone in that era could do.
Could be that.
I always thought that must have been the exact time that home flower gardens first became a “thing,” but yeah it makes sense that the new ting was cultivating different varieties.
Research on it states it was primarily a 3 year period, with exotic cross breeds and mutated bloom colors driving the craze. Makes me think of the beenie baby craze.
Back then, at times even bank savings accounts could get interest rates at or near double digits.
I got my first mortgage in 1980, shortly after graduating college. The rate was 14.25%. Classmates who bought houses in mid 1981 got 16-17% mortgages.
People freaking out about 7% mortgages now are going to be devastated if the FED keeps pushing.
Target Corporation (NYSE:TGT) insiders who sold US$666k worth of stock earlier this year are probably glad they did so . . . .
Mon, March 13, 2023
By selling US$666k worth of Target Corporation (NYSE:TGT) stock at an average sell price of US$202 over the last year, insiders seemed to have made the most of their holdings.
The stock is now selling for $157 a share so . . . in a rising market it fell 20%.
any chance the insiders knew the stock was going to fall?
And from Forbes, BANK insiders are buying
On Friday, 43 insiders at depository institutions bought their banks’ shares, making it the biggest cluster of insider buying in the industry since May 2020, according to Insider Insights, which tracks such data. Because of the lag in reporting insider transactions to the Securities and Exchange Commission, that number could continue to rise over the next few days as more filings come in.
Why? Experts said that it could be a signal to the market of their institutions’ strength, a sort of “don’t worry, we’ve got this” message to investors.
JP Morgan insiders sold a combined $22 million in shares last week
Most of it was one guy, Daniel Pinto, but he clearly was not the only one.
Interestingly, not a single JP Morgan insider bought shares last week.
