Q: Following up on your excellent article comparing CASH & XBB.
I like the current 4.95% rate on CASH. '
As interest rates come down would the yield on CASH drop at the same rate ?
Thanks.
I like the current 4.95% rate on CASH. '
As interest rates come down would the yield on CASH drop at the same rate ?
Thanks.
5i Research Answer:
Yes; CASH invests in short term accounts and short term securities. As rates decline it will likely be very highly correlated and yields will likely decline in tandem.