Maybe so. I think it is a crap shoot.I haven't thought about it yet. I think what's more likely is that I'd buy Jul 2034s instead of more Jan 2034s if I increase my DARA. Otherwise, my sense is that the small difference in duration isn't worth the trading costs.Do you plan to buy 7/34s when they become available, funding with 11/12 1/34s and 1/12 2040s? (curious....)Excellent question. I don't really have a baseline plan. I can share what I've done so far, and some of my thoughts about what I might do.Curious what your baseline plan is for the TIPS coming due over the next few years. Reinvest? into short? long?For me, lots of my TIPS are in a liability matching ladder (roughly, since liabilities are uncertain). However, about 57% of my TIPS are mature before the end of 2027, while my LMP extends through 2047. So if I'm being honest, many of the TIPS maturing before 2028 are part of my risk portfolio, due to the reinvestment risk.
I like the idea of an inflow of cash every 6 months instead of a larger amount once per year. I might buy some. I haven't decided either. I doubt if the trading costs on one ladder rung will amount to much. If you buy at auction you will eliminate that.
Statistics: Posted by protagonist — Sat May 18, 2024 11:26 pm — Replies 312 — Views 25294