The term "T-Bill and Chill" is a real phenomena in 2023 and
So Are 5% Coupon Investment Grade Municipal Bonds gettable at par:
The 5% nominal, taxable yields offered by US Treasury Bills and money markets sure are bright and shiny.
It is also the time honored investment strategy consisting of little effort, little thought, little intellectual capital, little clue after 6 months, brief euphoria, enormous reinvestment risk always looming in the not-so-distant future, and after 6-12 months (maybe 2 years :) ), the investor is back swiping through thousands of #Munibonds in the secondary market or rolling over to another 6-month Treasury.
Then again, yields might be higher in 6 months, but then one must make another decision about committing capital to long term tax exempt income or continuing to chill.
Then again, an investor can do both. Commit a portion of your capital to US Treasury Bills yielding over 5% and commit the other portion to investment grade MuniBonds and lock in 5% yields.
Definitely read the article below by the team at Bloomberg.
#TBillsnChill #TBillnChill #Treasury #MunicipalBonds #Munis #MuniBond #WatkinsonMuniBonds #GetRealStayRich #TBillandChill" "#TBill&Chill" #MunicipalBondSMA