--- Erik Reuter <[EMAIL PROTECTED]> wrote: > On Mon, Apr 05, 2004 at 10:32:48AM -0700, Gautam > Mukunda wrote: > > > US Government Bonds are considered the only > "riskless assets" in the > > financial world - > > Actually, T-bills would be lower risk. Because > unless you are talking > about TIPS, bonds can lose a significant amount of > capital during > inflation. And even TIPS can have a capital > depreciation if interest > rates rise significantly. > > 3-month T-bills are much less sensitive to inflation > and interest rates.
> Erik Reuter http://www.erikreuter.net/ Different types of risk, sorry. I'm slipping into financial sector jargon. US Government Securities (and all of the ones you are talking about are US Government securities) are all riskless assets. The risk referred to is the risk of default only - basically the risk of losing your nominal principal. The other stuff is, of course, relevant to calculations of your real risk, and stuff you should take into account in financial planning. ===== Gautam Mukunda [EMAIL PROTECTED] "Freedom is not free" http://www.mukunda.blogspot.com __________________________________ Do you Yahoo!? Yahoo! Small Business $15K Web Design Giveaway http://promotions.yahoo.com/design_giveaway/ _______________________________________________ http://www.mccmedia.com/mailman/listinfo/brin-l
