Been A Long Time



Took a long break from blogging but looking forward to getting back into it with all the volatility. Here's something interesting:



Now I'm not an expert on money markets or bonds but I've been reading up quite a bit on that market. From what I understand there are some major dislocations going on in the marketplace. A mass stampede into short term treasuries, ok you heard about that a million times on CNBC.

Check this out, a 4 -week Tresuary Bill is yielding 1.68% (even lower when I actually pulled this up) A 1 month Reverse Repo can yield 5.05%. If I'm reading this correctly you can borrow money at 1.68% and lend it out in the Repo market at 5.05%. If you utilize leverage wisely based upon your equity it seems like a nice potential trade. I'm no expert but would be interested in hearing from one!

EDIT: When I first looked at the yield on the 4 week it was trading 1.52%, as of 3:15 pm EST it is now yielding 2.25%!!!