Where are you getting high yields on cash?

[shamelesscloner]

Where are you parking cash as you wait for investment opportunities? I'd like to be getting 4-5% yields on cash and curious what folks have found! TIA

[gfp]

Interactive brokers pays 4.6% and T-bills pay 5.4%.  I'm sure there are money market sweep accounts available at most brokers.  Most banks are also running promotional rates on CDs if you are looking to tie up the money for 6-9 months or longer.

[Gmthebeau]

I buy treasury bills, which currently pay about 5.4%.  You can buy through Schwab, fidelity etc pretty much any competent broker.  They are very liquid and easy to sell if an opportunity comes along.

[shamelesscloner]

18 hours ago, Gmthebeau said:

I buy treasury bills, which currently pay about 5.4%.  You can buy through Schwab, fidelity etc pretty much any competent broker.  They are very liquid and easy to sell if an opportunity comes along.

Thanks for that info! What are the risks of buying treasury bills through Fidelity? I presume these funds are FDIC insured up to $250K if Fidelity goes under? What has happened to short term treasuries in the past with an inverted yield curve?

[scorpioncapital]

anyone locking in 2-5 years for higher yield in case short-term yields reverse in next 2 years? Or is the risk they go even higher?

[Parsad]

4 hours ago, shamelesscloner said:

Thanks for that info! What are the risks of buying treasury bills through Fidelity? I presume these funds are FDIC insured up to $250K if Fidelity goes under? What has happened to short term treasuries in the past with an inverted yield curve?

 

You're money is safer in treasury bills than FDIC insurance!  The only way you don't get your money back is if the government defaults.  Thus you can go well over FDIC insured coverage holding treasuries.  FDIC doesn't guarantee the treasuries...but the U.S. or Canadian government does...depending on what you are buying.  Cheers!

[Gregmal]

Stocks

 

[dealraker]

31 minutes ago, Gregmal said:

Stocks

 

Angela asks, "Why are you again laughing so hard?"  I respond, "Because 'again' I just read Greg's post!"  

 

48 year ex-bond survivor here.  

[Gregmal]

8 minutes ago, dealraker said:

Angela asks, "Why are you again laughing so hard?"  I respond, "Because 'again' I just read Greg's post!"  

 

48 year ex-bond survivor here.  

Props for surviving it despite not owning any bonds. Frankly I don’t know how you missed it. The massive 5 decade long super bull market in bonds that was so obvious and crystal clear to everyone. In 2022/3!

 

I remember in 2013 hearing folks snidely retort how rates are manipulated and can’t possibly go any lower. A decade later they still chime in about how obvious it was rates would be low and stocks would do well the last decade and how this time it’s different. 

[John Hjorth]

There is nothing wrong with investing in bonds, as so and such.

 

The issue here is the mere topic title : "Where are you getting high yields on cash?",

 

In the meaning confusing "high yields on cash" [related to risk] with investing in bonds [related to risk].

 

Like being invited to a BBQ, asking the host : "What are we having?" - Answer from the host : "You."

[realassetsvalue]

Apart from money market funds I use the AAA CLO ETFs as "near-cash" equivalent. I park excess liquidity in CLOA - Blackrock's AAA CLO ETF but Janus Henderson has another one as well that is larger, JAAA I believe.

 

Bears some credit risk but would have to be an apocalyptic scenario if the AAA tranches took losses (effectively never have historically). CLOA pays a ~6.5% yield and is floating rate with effective duration under a quarter and average maturity of ~3.7 years.

[blakehampton]

For all of you guys buying T-bills, what is the best way to do it while maintaining strong liquidity? Fidelity is my broker and I have checked out their bonds page but haven't quite figured it out.

[Gregmal]

J-bills providing 15% today.