There is now an alternative - cash in investment firms money market funds is earning nearly 3% and Treasury notes of a few months duration, slightly higher. Yield curve is inverted and the party is beginning on Wall Street today.
Keep your ear to the music and make sure you have a sturdy seat nearby if it stops.
Jeff
Where are you finding %3 MMFs?
Where are you finding %3 MMFs?
My apologies (fingers flying faster than brain), Vanguard, Fidelity and Interactive Brokers all are paying 50 basis points under Federal Fund Rate or about 2.19%. US Treasury notes (available essentially commission free) of 7-9 months are paying 2.95% and 10-12 months are paying 3.1%
BTW, when evaluating the effects on corporations, new bonds are averaging 5.25% for 3 year maturity and BBB rated corporates at 8.74% for 5 year bonds
Jeff