Has Anyone Bought Zeros Instead?

Discussion of the Bond portion of the Permanent Portfolio

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doug6zj9
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Has Anyone Bought Zeros Instead?

Post by doug6zj9 » Mon Apr 26, 2010 7:51 pm

Has anyone bought Zeros instead of the coupon paying Treasuries?  Or have you studied how they behave comparatively?  I see they are priced less than half.  Does it follow that they are twice as volatile then? 
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MediumTex
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Re: Has Anyone Bought Zeros Instead?

Post by MediumTex » Mon Apr 26, 2010 8:45 pm

I believe they are about 1.5 times as volatile as similar duration coupon bonds.

I own a little EDV.
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Quasimodo
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Re: Has Anyone Bought Zeros Instead?

Post by Quasimodo » Tue Apr 27, 2010 5:33 pm

We have some zeros through American Century's Target Maturity 2025 fund BTTRX. Best held in a tax-deferred account.

As a comparison, today BTTRX went up 1.75%, EDV rose 2.37% and Vanguard's long treasury fund VUSTX went up 1.28%.

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doug6zj9
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Re: Has Anyone Bought Zeros Instead?

Post by doug6zj9 » Wed Apr 28, 2010 1:25 am

Quasimodo wrote: We have some zeros through American Century's Target Maturity 2025 fund BTTRX. Best held in a tax-deferred account.

As a comparison, today BTTRX went up 1.75%, EDV rose 2.37% and Vanguard's long treasury fund VUSTX went up 1.28%.
And I see TLT, which many seem to favor, went up 1.41%
"Markets can remain irrational longer than you can remain solvent"
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