Not exact matches
Meanwhile, actual and anticipated selling of
short -
duration bonds as companies repurpose repatriated
cash has led to a widening
in spreads.
Some of the best and most experienced investors
in the world have a habit of routinely keeping 20 % of their net assets
in cash and
cash equivalents, often the only truly safe place for parking these funds being a United States Treasury bond of
short -
duration held directly with the U.S. Treasury.
Given that
shorter duration bonds hold up better when interest rates rise and benefit from the increase faster, they make a great choice for investors looking to
cash in on the Fed's decision.
Others, eschewing conventional personal - finance advice, are even opting for «
cash -
in» refinancings, paying thousands of dollars out of pocket to settle old loans — and then taking out new mortgages with lower payments,
shorter durations or both.
In other words, we've seen that
cash is a reasonable form of ballast, but only if it's held for
short durations, when the compounding effect of inflation is relatively small.
«The immediate cause of these lower returns is undisputed: Fidelity allocated MIP investments away from higher - return, but higher - risk sectors (e.g., corporate bonds, mortgage pass - throughs, and asset - backed securities) and toward treasuries and other
cash - like or
shorter duration instruments,» the appellate court wrote
in its opinion.
By investing
in real estate, the risk you assume is minimized with tangible assets that don't significantly change
in value over
short periods of time not to mention real estate generates steady monthly
cash flow each month for the
duration of the investment.