I started lengthening clients' bond ladders yesterday. There has been some great corporate paper rated A or better that has been looking tasty. Unloaded around 300k of a Goldman Sachs 6.45% on the long-end today. TIPS looking solid as well, 5 year at 2.6%.
I don't know if you guys/gals noticed, but in the last 5 or so years, there was only a brief moment about a year ago when quality rates perked above 6.5%. I may be jumping the gun, but time to load up. Newbies should be opening accounts over the phone with these rates. Time will tell, but I'm officially calling a bull market starting in bonds.
Time will tell, but I'm officially calling a bull market starting in bonds.
You're definitely the first! I don't know how we can expect rates to go down when they're sooo close to historic lows. Commodity price are still going nuts, there is a possibility for wage pressures & our money supply is still increasing at an unsustainable rate.
Even so, 6.5% is pretty darn good and you can't hurt too many people with that.