Hi all, So TBill auctions are held weekly on Thursdays and funds don't settle until the following Tuesday. Say one bought 1mo TBill on 5/4/23 (auction), the real date which you get the bond is 5/9. The bond doesn't pay its coupon until 6/6. However, you'd need to wait until that Thursday, 6/8, to buy the TBill again. That means in these ladders, there is a 1 week delay which you are losing out on interest. Am I right in this regard? Is there a way to ladder it so that there is no period of no interest?
Thanks.
Submitted June 13, 2023 at 03:05AM by fjskbfjs https://ift.tt/3K6Vh0b
