Who is buying 1 year Corporate bonds when treasuries pay more?

[jasperrosa37]

@agappe2011 Look at CD's listed via your broker, not banks directly. I can't link since you'd need to log in to see.

 

[kavi0808]

@agappe2011 It’s a brokered CD on Fidelity from Celtic Bank

 

[agappe2011]

@kavi0808 TY. I’ll keep an eye out for them

 

[grebel]

@kavi0808 No sauce no dap. I'm calling BS on this claim...unless you can provide sauce.

 

[mickaela]

@grebel If you look at Fidelity's brokered CDs, you can find FDIC insured CDs at 5.35% that pay monthly. The catch is that they are long term(10+ years) AND callable, meaning if interest rates go down, the bank can pay them off early to avoid further interest. So you are taking all of the interest rate risk, while the bank takes none.

https://fixedincome.fidelity.com/ft...maxsandp=&callind=&sinkind=&name=CD&sortby=YD

The best call protected CD I can find is a 2 year CD that pays 4.9%

 

[grebel]

@mickaela I appreciate the research and your response. Thank you.

 

[kavi0808]

@mickaela Yes, it’s callable. But it’s FDIC insured, and you get the interest up to the point it’s called. Fine with me.