Interested in US treasury bills. Main reason is protection against bank failure, bail-ins and account freezes.
I know they are popular boltholes for people with cash amounts exceeding the insured $250,000 limit, but how liquid are they? Can you exchange unmatured bills for USD in a matter of hours, days or weeks? Can you request money in physical cash or a cheque (if bank accounts are frozen)? Any chance the gov halts payment upon request during economic strife? Any chance the gov doesn't pay them on time? Any chance they dont pay at all?
At the expiry of the contracted period, do they send you the total amount + interest, or just the interest, with your capital continuing to accrue interest at the contracted time (every 28 days for 4 week bonds)? What happens if buy 28 day bills and want to hold for a longer period after the 4 week expiration - do you have to actually buy them again after receiving payment or do you just leave your capital in the treasury to accrue interest as asked above?
What is the most common way to hold cash to avoid the 250k insurance limit, and also have ready access to cash to buy during a downturn: 28 day bills? 182 day bills? Physical cash in a vault? Digital cash in a foreign (e.g. Swiss) bank account? A combination I assume...
Is the best way to buy them directly from the treasury? Any other countries bills worth considering?
Berkshire Hathaway is holding over 100 billion in treasury bills; any idea what type? https://www.wsj.com/articles/playing-with-100-billion-warren-buffett-is-giant-trader-of-u-s-treasury-bills-1519381801
Submitted May 24, 2018 at 08:26AM by ericcart https://ift.tt/2x7NV5A
