Wall Street Is Finally Going to Make Money Off the Permian

Re:Wall Street Is Finally Going to Make Money Off the Permian by dghlsakjg on Thursday April 27, 2023 @10:31PM (#35736897)

You are misusing the terms yield and return, and seem to have a misunderstanding of how a muni bond works.

A muni bond would have yielded $.50, but you still have the underlying asset, so it isn't a loss, its a guaranteed return of 50% every 10 yrs, until the bond matures (you get your $1 back) or is defaulted on.

The SP500 doesn't guarantee anything, and there are 10 yr periods where it has negative growth.

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Re:Wall Street Is Finally Going to Make Money Off the Permian by jjeaff on Friday April 28, 2023 @09:59PM (#35749297)

No, I used the term yield correctly. $1 in the sp 500 over that time period would have increased to $3.50. Or a yield of $2.50 while maintaining the underlying asset of $1.

As for it being a muni bond, the risk is low but still there. Municipalities do in fact default sometimes.

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