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Matt Cerminaro 5.0 1 idea

Data Research Associate
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BIL LONG $91.46 Apr 09
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The speaker presented a chart showing that in a scenario where interest rates rise 300 basis points, the price of a 3-month T-bill would only fall 0.08%, compared to a 10-year Treasury bond falling ~20%. For the "safe" anchor portion of a portfolio, especially for someone near retirement, avoiding duration risk is paramount. Short-term Treasuries provide yield with minimal interest rate sensitivity. LONG on 3-month T-bills as the preferred instrument for the low-risk sleeve of a portfolio because they effectively serve as ballast with negligible price volatility in a rising rate environment. A prolonged period of rapidly declining interest rates, where longer-duration bonds would significantly outperform.
BIL The Compound News Apr 09, 05:51
Data Research Associate
Matt Cerminaro (Data Research Associate) | 1 trade ideas tracked | BIL | YouTube | Buzzberg