Why do this? Six month treasuries are paying 4.45%. 1) Wells Fargo is shady 2) CDs are generally not marketable like treasuries. 3) Treasuries have tax advantages You're taking on more risk, making less money, will have a harder time getting you money early if needed and may pay more in taxes. Am I missing something?
I have a TON of US Treasuries!! If they go up or down quickly, I still have my steady income. Yes, I know that treasuries are the safest out there. If I put the money at Schwab or Fidelity I risk going way above SIPC. I could open a new account at a new brokerage firm...When my wife and I die, more paperwork...Exit fees. Also we have a trust department of a bank handling our estate...Not cheap. We have to send them our trust papers. We are already established at Wells. Method to our madness...Estate planning. Yes, Wells has their problems...I get it. In 25 years I have had to break a CD once (I think). I hold to maturity. The old adage...All your eggs in one basket. Who had the strength to be forced to buy Wachovia (2008-9)? Just me...
The US commercial real estate maturity wall doesn't peak until 2027. This is just a smaller part of a much larger looming potential global refinance crisis in 2026/2027. There are these cycles in global liquidity that don't seem to be well understood. There seems to be around a 5-7 year cycle in global liquidity that probably has something to do with duration and refinance instruments. The trade in a macro sense is the equity markets have priced in that we have cleared covid when in reality, the globe has largely kicked the covid debt can down the road to 2026 or so. I don't think the trade is in US commercial real estate. That might be the only sector this is actually priced in. The trade is in that the global equity markets have the foot on the gas to run head first into a giant maturity wall of covid debt that will need refinancing. How to position the bets for this I am still trying to figure out but will be the base view for all my 2025 bets.