Fat Belly Yield Curve

[SunTrader]

Existentially "Risk-free" hmmm.

 

[kmiklas]

No. But @kmiklas can explain.

Eurodollar futures are not my game, but I’d imagine that their risk is greater than a US T-bond.

What are their key risks? How can you lose?

 

[Shax]

 

[kroxobor]

One thought is to buy a existentially risk-free 6mo bond at 5% and collect a sweet 2.5% in October.

And get the same in terms of goods basket. No risk no gain

 

[The_Krakenite]

-20 or 30 years is an investment, not trade.

I doubt I am the only one who buys long-term Fed bonds during a fire-sale, with the intention of flipping them in a much shorter timeframe.

 

[kmiklas]

Existentially "Risk-free" hmmm.

Happy that someone got my joke XD