MBS Day Ahead: What’s a High Enough Rate to Attract Your Money?

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Posted To: MBS Commentary

If you've ever invested or even thought about investing, you likely have a magic number when it comes to the rate of return that would motivate you to pursue an investment. What if I could guarantee you a 5% fixed rate of return for 20 years? How about 4.5% for 10 years? How about 4% for 5 years? Even if you wouldn't put all of your money into whatever underlying investment I'm trying to sell you, it's certainly worth a good, hard look for some of your lower-risk allocation. It just so happens that those rates (or something close to them) are indeed guaranteed today. Well, they're as guaranteed as CVS can make them. If you think CVS will fail, then I suppose they're not truly guaranteed. Moody's thinks CVS is Baa1/Negative Watch, and S&P says BBB+/Negative Watch…(read more)

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