This New 30-Year TIPS Looks Like A ‘Death Star’ Investment

Summary

  • The term is too long. The risk is too high. The potential reward is too low.
  • An inflation breakeven rate of about 1.72% will make this TIPS appealing for big-money investors, so this auction should get solid demand.
  • But for small-scale investors looking for inflation protection, the Series I Savings Bond is a superior investment.

It’s big and ominous. It’s volatile. It’s actually kind of scary. And it might outlive you. This is CUSIP 912810SM1 — a 30-year Treasury Inflation-Protected Security being created by the U.S. Treasury this week.

Read my full analysis on SeekingAlpha.com

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About Tipswatch

Author of Tipswatch.com blog, David Enna is a long-time journalist based in Charlotte, N.C. A past winner of two Society of American Business Editors and Writers awards, he has written on real estate and home finance, and was a founding editor of The Charlotte Observer's website.
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1 Response to This New 30-Year TIPS Looks Like A ‘Death Star’ Investment

  1. Pingback: How To Construct a TIPS Ladder For Retirement - The Retirement Spot

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