Since 1926, per Morningstar data, stocks have returned 9.8 percent a year, while long-term Treasuries have generated 5.4 percent.
To make Treasuries a part of a balanced portfolio, consider this:
In fulfilling the role of cash management center, corporate treasuries are fraught with daily complexity.
Corporate treasuries gain strategic value by how well the technology can seamlessly exchange information with other systems within fully automated, end-to-end processes.
Under a Simple Collateral Substitution, though, New York State would probably say the old mortgage was released at the moment when the old lender accepted Treasuries rather than real estate as security.
(The New Lender probably lends the borrower enough money to buy the necessary Treasuries.)
The nature and timing of these important questions sheds light on two very important issues: First, many
treasuries are not involved early enough in the transaction; and second, while these issues are important, there are other issues of a far more strategic nature that can contribute greatly to the success of the M & A event that are not being focused on.
Currently, though, two-year
Treasuries are trading at about .25, a sign there's "no value in the shorter bonds," says Lay.
As of late June, five-year
Treasuries were yielding 6.38%, whereas non-callable five-year agency debt paid about 6.62%.
Substituting a broad portfolio of corporate bonds in the one- to three-year maturity range for
Treasuries over the same 10-year period, there was only one quarter of negative total return (Q1-1994) and no annual negative total return.
But because
Treasuries and savings bonds are affected by interest rate changes, the prices and yields may fluctuate before you cash them in.
Perhaps the safest bonds are those that are backed by the government:
Treasuries, Zero Coupon bonds and U.S.