Friday, 28 April 2023

SBMay23 3.07%: Reached the SSB quota, looking for other fixed income

 I applied for $29k of the latest SSB, SBMay23 with an average yield of 3.07%. With this application, I now have $200k worth of SBB which is the maximum an investor can hold. 

Even though this looks like the last SSB yielding >3% for the forseeable future, investors got the entire amount they applied for. While some speculate that liquidity has dried up, I believe that this might be a case of investors like myself who are close to hitting the $200k limit so they either can't apply, or can only apply for a little bit more.

I also suspect that not everyone is redeeming lower yielding SSB to apply for this one. I have a 2.8% SSB which I did not redeem because 3.07% is not a huge difference.

Now I have to look for alternatives to SSB.

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