Hoover school board makes financial moves to save millions

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Oh my goodness no!!!!

Vickery is at best selectively quoted or at worst deceptive. You might not lose principal in US Treasuries, but you may lose money if you sell them before they mature. This happens when market interest rates change. When market interest rates go up, bond prices (on fixed rate bonds) go down; and vice versa. In order to get a 1% yield on UST in today's markets, you have to buy 2 year or longer dated treasuries. In order to guarantee no loss, you must hold those bonds to maturity. It is absolutely critical that the Board and the public realize this.

Steven Grondin more than 1 year ago