Lock In A 5% Yield For 3-4 Years With TVA Baby Bonds
Source: SeekingAlpha
2025-01-10 04:07:29 ET
Summary
- Tennessee Valley Authority baby bonds TVC and TVE offer a 5% yield to maturity, higher than comparable Treasuries and TVA's regular bonds.
- These baby bonds trade on the stock exchange, pay quarterly interest, and have a par value of $25, making them accessible for small investors.
- TVA's strong financial performance and low default risk make these bonds a relatively safe investment, with the same credit ratings as Treasuries.
- Ideal for investors with a 3-4 year cash goal, these bonds provide a secure return, approaching par value as they near maturity.
Relatively Safe Yield Hiding In Plain Sight
It's been almost a year since I covered the baby bonds issued by the Tennessee Valley Authority (TVA). The two securities, one due in 2028 ( TVC ) and the other due in 2029 ( TVE ), have under 300 followers on Seeking Alpha and trade at a low average volume of 10,000 - 15,000 shares per day. This persistent lack of attention has caused these bonds to trade with an attractive spread compared to both Treasuries and TVA's regular bonds of similar maturity....
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Lock In A 5% Yield For 3-4 Years With TVA Baby Bonds
Tennessee Valley Authority
NASDAQ: TVE
TVE Trading
0.12% G/L:
$24.06 Last:
2,186 Volume:
$24.27 Open:
