It is better to understand the basics and contemplate than to eat what product selling financial institutions feed us. (loop back to YBB's post re ratings and securitization). No disrespect specific to VanEck intended (I use their products.)

I agree with @yogibearbull’s explanation of how CLOs work. If he meant to ascribe blame for the Great Financial Crisis to CLOs I must have missed it. Do your own research. No need to trust VanEck.
Here’s an article from Wharton
Here’s one from the Financial Times
From JP Morgan
Yes, Investment grade rated CLOs entail more risk than highly rated corporate bonds. No. They did not cause or contribute to the GFC. No. You should not own them unless you understand the risk / reward trade-off and think they in some small way complement your overall investment portfolio. Just don’t conflate them with CDOs. No one benefits from such inaccurate unfounded inferences.

There weren’t many investment grade CLOs available at retail prior to 2020 when JAAA opened. HSRT came up in a web search. It gained +3.77% in 2020. I would never recommend one as a cash substitute. I confess to having misread the original post as at least opening the door for something “more active” (aggressive) then the safety of cash. If you want safety, short-term T-Bills are usually regarded as the safest investment, with insured bank / credit union accounts a close second. How a chaotic government shutdown (budget related) might upset that assumption is sometimes a topic of conversation.
True, cash is what one desires for absolute safety, especially if it’s to fund near term commitments (housing, medical care, child support, etc.) As an investor I have sometimes “stretched” the definition of cash as a part of a diversified portfolio. ”Relatively safe” compared to most other investments I hold works for me. Willing to take a short term haircut in pursuit of longer term goals. Like OJ, I’m getting up there in years, so “long term” still exists but in a different way. My current risk perameters allow me to hold about 5% in JAAA alongside 5% in a money market fund. But that’s not for everyone.
As @Junkster says, CLOs are not substitutes for cash (as defined in the strictest sense). I’d submit that neither is the River Park fund often mentioned. And he is correct that CLOs took a brief clobbering in March 2020 and for a few months beyond. Even my quite respectable ultra-short fund (TRBUX) at the time got knocked down. Truth is corporate bonds of every stripe got hit hard for a short period until the Fed stepped in and took the unprecedented step of backing investment grade debt. A black-swan like the Covid affair can strike at any time. They’re all different and usually unexpected. As bad as the hit was for CLOs for a month or two, equities got hit much harder. My p/m mining fund fell out of bed overnight. I’d go back and check how much it lost in a day or two, but it would be too painful.

First line in Examiner story: "Taxpayers spend at least $182 billion a year on illegal immigration, the cost of providing services to an estimated $15.5 million immigrants."
Interesting Freudian slip. The last time dollar values were placed on human beings in the U.S. was somewhere around 1865.
The piece references a similar report by FAIR in 2017. We can assume that since that report was similar, it used the same methodology. Here's Cato's takedown of that report and its methodology:
FAIR’s “Fiscal Burden of Illegal Immigration” Study Is Fatally Flawed
https://www.cato.org/blog/fairs-fiscal-burden-illegal-immigration-study-fatally-flawed
Anyone with the ability to read mutual fund documents (prospectus, annual reports) should also be able to go through Cato's point by point analysis.

Regarding CLOs, what is conveniently not mentioned is like most everything else in Bondland they melted down too during the Covid meltdown. Investment grade CLOs from AAA to BBB had drawdowns from 10% to 30% while below investment grade drawdowns were 40% to 45%. As recently as 2022, while investment grade CLOs eked out a small gain (JAAA) of under 1% below investment grade lost money. The longest tenured bond fund primarily into CLOs ( an interval fund) lost money 4 years since its 2014 inception. In 2020 it had a multi week drawdown of 30%. As recently as 2022 this CLO fund lost 4.48%. 2023 and 2024 just happened to be “the right place right time” for CLOs. I hold slightly under 50% in CLOs but I am more than cognizant of the risks. A substitute for cash they certainly aren’t.

What is cash? If one is thinking "checking account" (instant liquidity w/o loss), then even CDs don't qualify.
On the other end of the spectrum there is cash as an investment - locking up cash in fixed rate investments for longer periods of time (typically years). You can still get at that cash for emergencies, but at a cost. However, the cost is much less than the risk of investing in the market, and the cost is often known in advance (e.g. CD early withdrawal penalty).
Representing the first perspective is this piece by M*: Why Ultrashort Bond Funds Aren’t Cash Substitutes. "[I]n 2008 ... the average ultrashort bond fund dropped 8.4%. ... [In 2020] [w]hile most investment-grade bond categories posted positive returns during the market’s flight to quality, the average ultrashort bond fund lost about 1.8% in the first quarter.
And the 2020 losses peak to trough (March 6 - March 23) were much greater.
These relatively extreme (for their category) losses occur when the economy experiences severe jolts (GFC, pandemic). For "checking account" type cash, even these short lived, though sharp, jolts are unacceptable. For longer term "investment cash", the short term disruptions may be acceptable.
A difference between ultrashort bond funds and IG CLOs is that the CLOs are more complicated investments. In theory, AAA tranches should hold up well in any environment other than one where everything gets hit. And they should recover better. There's some solace in JAAA doing just that in 2022. But that's only one stress test and there are many ways the economic system can get jolted.
Junkster mentioned CLOs doing poorly in 2020. Was their behavior distinctive or just in line with (though more severe than) the rest of the IG market? That is, can we glean anything about their special risks from 2020? If not, then all we can say is that, yes, bonds of all ilk can get hit by system shocks and recover similarly.
If that is unacceptable, only invest in guaranteed principal vehicles (Treasuries, CDs, credit union time deposits, bank accounts, etc.).

ADD #1: SOME BOND funds had distributions this week, which should be reflected in this weeks numbers, as provided by their sources.
ADD #2: This is directed towards possibilities into the new government period arriving January 20, and monetary/fiscal actions.
--- Bond vigilantes are investors who sell government bonds or threaten to do so to force policy changes and discipline excessive government spending:
--- Explanation
Bond vigilantes use their market power to drive up borrowing costs for the government. This can happen when they protest against expansionary monetary or fiscal policy.
--- Origin
The term was coined by economist Ed Yardeni in the 1980s to describe traders who sold Treasury bonds to protest Federal Reserve policies that were considered too inflationary.
--- Example
In the "Great Bond Massacre" from 1993 to 1994, US 10-year yields increased from 5.2% to over 8% due to concerns about federal spending. The Clinton administration and Congress responded by reducing the deficit, and 10-year yields dropped to around 4% by 1998.
NOTE:

My intention, at this time; is to present the data for the selected bond sectors, as listed; through the end of the year (2024). This 'end date' will take us through the U.S. elections period, pending actions/legislation dependent upon the election results, pending Federal Reserve actions and market movers trying to 'guess' future directions of the U.S. economy. As important during this period, are any number of global circumstances that may take a path that is not expected; and/or 'new' circumstances. In the 'cooking pot' we currently have the big ingredients of the middle east and also, how much damage Ukraine may inflict upon Russia and the response.

FIRST: NOTHING TO ADD/ALTER regarding 'Never-Never Land'. The pre-DC world shift of January, 2025 remains 'interesting' at this time! We're in a 'Never-Never Land' (events you never imagined) of potential large impacts upon various economic functions emanating from a central government in the coming months and years. What comes next for the investing world of bonds is not yet known or fully understood, except for those have a better guessing system than I. I can only watch and listen a little bit and let the numbers try to bring forth meaningful directions.
W/E December 27 , 2024. Bond NAV's Mixed/Down for most + distributions
--- 'Course, all the bond sectors in the list find their reasons for price movements, and we find most bond sectors HAD ANOTHER 'SMALLER' HEAD SLAP for this week's pricing. The majority of bond sectors were down most days of the week. Short duration were the better performing for the week, with longer duration continuing to get 'thumped'. So, depending on where you're 'hanging' your bond market monies, the pricing this week, was mostly DOWN. The MINT etf, to the best of my recall, has maintained a positive price for the year, each and every week; and this remains for this week.
A few numbers for your viewing pleasure.
NEXT:
*** UST yields chart, 6 month - 30 year. This chart is active and will display a 6 month time frame going forward to a future date. Place/hover the mouse pointer anywhere on a line to display the date and yield for that date. The percent to the right side is the percentage change in the yield from the chart beginning date for a particular item. You may also 'right click' on the 126 days at the chart bottom to change a 'time frame' from a drop down menu. Hopefully, the line graph also lets you view the 'yield curve' in a different fashion, for the longer duration issues, at this time. Save the page to your own device for future reference. NOTE: take a peek at the right side of this graph to find the yield swings of the past week, and for the current yields for the last business day.
For the WEEK/YTD, NAV price changes, December 23 - December 27, 2024
***** This week (Friday), FZDXX, MM yield continues to move with Fed funds/repo/SOFR rates; and ended the week at 4.24% yield (-.13 basis points for the week). Fidelity's MM's continue to maintain decent yields, as is presumed with other vendors similar MM's. SO, one is still obtaining a decent MM yield. MOST MM's found a negative .10 - .13 basis change in yield for the week.
--- AGG = -.33% / +1.04% (I-Shares Core bond), a benchmark, (AAA-BBB holdings)
--- MINT = +.08% / +5.85% (PIMCO Enhanced short maturity, AAA-BBB rated)
--- SHY = +.04% / +3.70 % (UST 1-3 yr bills)
--- IEI = -.21% / +1.42% (UST 3-7 yr notes/bonds)
--- IEF = -.57% / -1.03% (UST 7-10 yr bonds)
--- TIP = -.16% / +1.48% (UST Tips, 3-10 yrs duration, some 20+ yr duration)
--- VTIP = +.06% / +4.56% (Vanguard Short-Term Infl-Prot Secs ETF)
--- STPZ = -.02% / +4.05% (UST, short duration TIPs bonds, PIMCO)
--- LTPZ = -.67% / -4.95% (UST, long duration TIPs bonds, PIMCO)
--- TLT = -1.37% / -8.30% (I Shares 20+ Yr UST Bond
--- EDV = -2.02% / -13.32% (UST Vanguard extended duration bonds)
--- ZROZ = -2.33% / -16.45% (UST., AAA, long duration zero coupon bonds, PIMCO
--- TBT = +2.92% / +28.35% (ProShares UltraShort 20+ Year Treasury (about 23 holdings)
--- TMF = -4.27% / -36.35% (Direxion Daily 20+ Yr Trsy Bull 3X ETF (about a 2x version of EDV etf)
*** Additional important bond sectors, for reference:
--- BAGIX = -.40% / +1.54% Baird Aggregate Bond Fund (active managed, plain vanilla, high quality bond fund)
--- USFR = +.08% / +5.40% (WisdomTree Floating Rate Treasury)
--- LQD = -.31% / +.68% (I Shares IG, corp. bonds)
--- MBB = -.24% / +1.05% (I-Shares Mortgage Backed Bonds)
--- BKLN = +.24% / +8.10% (Invesco Senior Loan, Corp. rated BB & lower)
--- HYG = -.04% / +7.83 % (I Shares High Yield bonds, proxy ETF)
--- HYD = +.83%/+4.36% (VanEck HY Muni)
--- MUB = -.04% /+.89% (I Shares, National Muni Bond)
--- EMB = -.29%/+5.55% (I Shares, USD, Emerging Markets Bond)
--- CWB = -.30% / +11.25% (SPDR Bloomberg Convertible Securities)
--- PFF = -1.33% / +6.52% (I Shares, Preferred & Income Securities)
--- FZDXX = 4.24% yield (7 day), Fidelity Premium MM fund
*** FZDXX yield was .11%, April,2022. (For reference to current date)
Comments and corrections, please.
Remain curious,
Catch

@davidmoran
Reeeee someone got triggered by actual FACTS!!! Or maybe someone missed his senility meds...grow a brain u fn retard and stop letting libtard media brainwash ur dumb a$s.
https://www.washingtonexaminer.com/policy/immigration/1658479/illegal-immigration-tab-182-billion-total-1156-per-taxpayer/

10 yr Agency with 1 yr CP are now available at 5.7%. I bought the same Agency a month ago at the same rate but only 6 mo CP. With 10 yr Treasuries moving up 30+ bps, Agency did not have to increase their rates because they are able to play with CP durations.
I see a lot of strategists falling over each other in issuing 2025 YE target but I have not come across anyone issuing their 10 Yr Treasury interest rate target. Please share if you see any 10 yr Treasury rate targets from professionals. Recent Treasury auction demand appeared solid - cure for high yields is high yields!?

Our CD/Treasury ladder is only out to three years, but I'm 85 and don't want to go too far out. Our Schwab SUTXX MMKT is currently at 4.35% and falling, the CD/Treasury ladder is at 4.81%. I'm replacing CDs and Treasurys as they mature, which will gradually move out the ladder.
At the moment the allocation is CD/Treasury ladder 43% and MMKT 57%. The main difference that I consider between CD/Treasury ladder and MMKT allocations is the possible need for "instant cash" due to future major medical issues. If it weren't for that I'd put almost everything into the CD/Treasury ladder. When we were younger we never kept this kind of money in either CDs or MMKTs.

Old_Joe, I have a very similar position on my Fixed Income positions. I have kept my CD Ladder at no more than 2 years, as I want my CD ladder to have ongoing CDs maturing pretty frequently, and have some liquidity issues better addressed with frequently maturing, short term CDs. I also have a wife who has very strong wish to have shorter term CDs in case she needs it "for a facelift"! Her way of saying that she may want a new car, a facelift, or surgery/treatment for one of the many "health related" issues we are monitoring closely! We also are dealing with a couple of Adult children and their families, who are continually needing financial support for health issues, losing jobs, needing money for an array of creative and surprising needs that crop up. In short, the shorter term CD ladder works fine for my situation, but may not be what others need, with their personal and financial situation.

Our CD/Treasury ladder is only out to three years, but I'm 85 and don't want to go too far out. Our Schwab SUTXX MMKT is currently at 4.35% and falling, the CD/Treasury ladder is at 4.81%. I'm replacing CDs and Treasurys as they mature, which will gradually move out the ladder.
At the moment the allocation is CD/Treasury ladder 43% and MMKT 57%. The main difference that I consider between CD/Treasury ladder and MMKT allocations is the possible need for "instant cash" due to future major medical issues. If it weren't for that I'd put almost everything into the CD/Treasury ladder. When we were younger we never kept this kind of money in either CDs or MMKTs.

AI Overview:
Kelly Community Federal Credit Union (KCFCU) in Tyler, Texas has been described as one of the most financially sound credit unions in the United States. KCFCU offers monthly and annual financial reports that include financial performance summaries, goals, commitments, and questions from members.
Credit unions are insured by the National Credit Union Administration (NCUA), which is similar to the Federal Deposit Insurance Corporation (FDIC) that insures banks. Most credit unions and banks are insured for up to $250,000 per customer.
KCFCU was founded in 1963 by employees from the Kelly-Springfield Tire Plant to provide a safe place for workers to save and borrow money. The credit union's mission is to treat members like family and prioritize relationships over transactions.
=====================================
dt, KCFCU appears to be a worthy place to invest your money.
That isn't the issue I have been beating to death on these threads which is duration.
Let me try a different angle:
What position do you think you are going to be in with interest bearing investment options in the 6-12 months after the investment you buy now matures?
Given the current rates and current trend, do you think you are going to be able to find an interest bearing investment of any duration paying 4+% in 6-12 months?
=======================================
Aside FWIW: You don't seem to care too much for my input, but buddy, I've been playing the CD ladder game for 12-13 years and I've not lost yet. I'm sitting a 5-yr, CP CD ladder paying a wee bit over 5% that was there for taking a year or so ago. Today, a 5-yr, 4+% CP CD ladder is there for the taking, for anyone who can step away from the tree and see the forest.

Abandoned the sell limit-order on BHB in favor of a Market order this morning. The SOB just has kept falling lately with no let-up. Still managed almost 15% to the upside with it. Proceeds into BLX and with just a smidge into WCPNX. (No partial buy-shares.) Holding off on SCYB for the time being.

It's not an issue like the mini-budget deal that had to be rushed to avoid the government shutdown. That may have drained some oxygen in the DC.
As for the WEP & GPO repeal, here is the timeline:
Saturday, 12/21/24 - Senate passed it
Tuesday, 12/24/24 - Read in the House and House Speaker signed it
Now the Senate President has to sign it.
Biden may receive it by 12/30/24 or 12/31/24.
Then the 10-day clock for pocket veto starts - either Biden signs it, or if he doesn't sign in in the 10-day window, it's pocket-vetoed. Remember that Biden said he supported this bill.
It should be retroactive to 1/1/24, so people may expect a big check from SSA. I read that SSA may split these back payments in 2025 and 2026.
IMO, people affected by the WEP & GPO should file online with SSA - new filing or adjustments to payments.
This MA site has been providing good info all along,
https://massretirees.com/2024/12/latest-on-wep-gpo-repeal/
Edit/Add. It's with Biden as of 12/28/24. So, the 10-day clock started yesterday.
https://trta.org/hr-82-wep-gpo-repeal-bill-reported-to-president-biden-for-his-signature/

Most of us know how FDIC insurance works and troubled banks are resolved but most of us have no understanding of how deposit insurance works at credit union level. Please educate us with examples of how depositors of CUs were protected (or not protected) when CUs got into trouble.

See excerpt below from a Google Search on Credit Union "Share Certificates";
A credit union share certificate is a type of savings account that offers a fixed interest rate for a set period of time:
How it works
You deposit money into a share certificate for a set term, usually between 3 months and 5 years. In exchange, you earn a higher interest rate, called a dividend, than a regular savings account. The longer the term, the higher the dividend.
Benefits
Share certificates are a good option if you want to earn interest on money you plan to use in the future. They can be a safer investment than stocks or mutual funds.
Risks
You'll incur penalties if you withdraw money before the term ends.
Insurance
Share certificates are federally insured by the National Credit Union Administration (NCUA) for up to $250,000 per depositor, per ownership category, per institution. This is similar to the coverage offered by the Federal Deposit Insurance Corporation (FDIC) for banks.
Comparison to certificates of deposit (CDs)
Share certificates are similar to CDs, but are offered by credit unions instead of banks. The main difference is the name.

IBIT is at 0.25%.
https://www.blackrock.com/ae/intermediaries/products/333011/ishares-bitcoin-trust

Thanks msf! I have a CD in my IRA account maturing in a few days. I am tempted to reinvest it in 2 year callable CD, treating it like a 6 month noncallable CD. If it is called, I think I will still be able to get a 4% replacement callable CD, and if it is not called then I am fine with that callable rate for the length of the CD.
Regarding MMs, I am expecting all categories of MMs to fall below 4% in 2025--I will continue holding MMs but may reduce the amount I will keep in them.

@dtconroe. a very prudent decision for someone not into risk/drawdown and who is not a trader. Regarding CLOs, what is conveniently not mentioned is like most everything else in Bondland they melted down too during the Covid meltdown. Investment grade CLOs from AAA to BBB had drawdowns from 10% to 30% while below investment grade drawdowns were 40% to 45%. As recently as 2022, while investment grade CLOs eked out a small gain (JAAA) of under 1% below investment grade lost money. The longest tenured bond fund primarily into CLOs ( an interval fund) lost money 4 years since its 2014 inception. In 2020 had a multi week drawdown of 30%. 2023 and 2024 just happened to be “the right place right time” for CLOs. I hold slightly under 50% in CLOs but I am more than cognizant of the risks. A substitute for cash they certainly aren’t.

Thanks for your comment Junkster. These threads invite a wide array of responses, from posters with a wide array of investing preferences, and a wide array of personal financial circumstances that are the background to their financial decision making. I try to sort through the posted information, to see how much applicability it has to my personal investing criteria. This thread has led to a large variety of posters and posted information. I don't have any interest in CLOs, and I "currently" don't have any interest returning to the bond oef world of trading and momentum based decision making. I don't care for annuities and unique risks/rewards. CDs have been paying a very nice 5+% return for the last year, but that seems to be on the decline. I have never used callable CDs, but they do offer a better interest rate than noncallable CDs, for about 6 months and possibly longer. I am inclined to invest some maturing CD cash into a local Credit Union Share Certificate that pays about a half percent more than I can get at Schwab or my local bank. Different strokes for different folks, and their varied financial strategies and circumstances.

Thanks msf! I have a CD in my IRA account maturing in a few days. I am tempted to reinvest it in 2 year callable CD, treating it like a 6 month noncallable CD. If it is called, I think I will still be able to get a 4% replacement callable CD, and if it is not called then I am fine with that callable rate for the length of the CD.
Regarding MMs, I am expecting all categories of MMs to fall below 4% in 2025--I will continue holding MMs but may reduce the amount I will keep in them.

@dtconroe. a very prudent decision for someone not into risk/drawdown and who is not a trader. Regarding CLOs, what is conveniently not mentioned is like most everything else in Bondland they melted down too during the Covid meltdown. Investment grade CLOs from AAA to BBB had drawdowns from 10% to 30% while below investment grade drawdowns were 40% to 45%. As recently as 2022, while investment grade CLOs eked out a small gain (JAAA) of under 1% below investment grade lost money. The longest tenured bond fund primarily into CLOs ( an interval fund) lost money 4 years since its 2014 inception. In 2020 it had a multi week drawdown of 30%. As recently as 2022 this CLO fund lost 4.48%. 2023 and 2024 just happened to be “the right place right time” for CLOs. I hold slightly under 50% in CLOs but I am more than cognizant of the risks. A substitute for cash they certainly aren’t.

All true, which is why one is usually better off sticking with vanilla annuities. However, page count is a somewhat misleading metric.
Fixed annuity contracts are self-contained. Unlike mutual fund documentation, they are not broken into multiple parts: summary prospectus (outline), statutory prospectus (broad description of operation), and statement of additional information (legalize and structural info).
Add all those mutual fund pages together, and you might be at "just" 35 pages (Bruce fund BRUFX statutory prospectus + SAI), at 135 pages (VFIAX - 10 p. summary, 57 p. statutory, 78 p. SAI), or even find a humongous 575 pages (PIMIX - 5 p. summary, 142 p. statutory, 428 p. SAI).
Read a good bitcoin ETF prospectus lately? Those seem to run around 150 pages, with risk factors alone taking up scores of pages.
I pulled out an old SPDA contract I had years ago. Plain vanilla. Six pages on how the annuity could be annuitized plus a two page summary up front covering how the amount invested would grow (fixed rate) year by year and how much it would be worth annually including penalty if I closed it early. That's all.
Many if not most annuity contracts are complicated. But they don't have to be if all you're looking for is a fixed rate investment comparable to a CD. Things get at least a little more complicated if you're looking for an income stream (see, e.g. Social Security). And variable annuities? Now you're going up to potentially scores of pages for each fund offered inside the VA.

I failed to mention the option of using Credit Union Share Certificates for you CD money/investments that are maturing. They are "almost" identical to CDs regarding deposit protection coverage, varying terms, and interest rate offers. I have a local Credit Union, that is highly rated, and pays 4.5% for a one year Share Certificate (compared to 4% from my local bank), but its early withdrawal fee is 6 months of interest (compared to 3 months interest from my local bank). I currently have some CDs maturing from both my Schwab Brokerage accounts (some taxable some IRA), and my local Bank. I am considering moving some of my maturing CDs from Schwab to a local Credit Union. I am not a big fan of Brokerage CDs compared to local banks and credit unions, because of differences in early withdrawal penalties/fees.

@stillers, thanks.
That is from an article on "Portfolio Income & Withdrawals" that I published in a local e-paper this week (the full weekly issue isn't out yet, may be later today). It may also be of interest to others here.
https://ybbpersonalfinance.proboards.com/post/1795/thread

Mini-Grayscale BTC (ER 15 bps) now has $3.7 billion AUM and trades an average of 2 million shares/day. That is good enough for retail investors.
BTC vs the elder GBTC (150 bps) is a liquidity game for Grayscale. So, GBTC has very high ER, but also higher liquidity (but some Bitcoin ETFs have even higher trading volumes - IBIT, FBTC). Surprisingly, BTC trading volume is catching up fast with that of GBTC. But that issue is for institutions that may move $millions.
Several etf sponsors are playing this liquidity angle by continuing to offer older high ER ETFs and also newer low ER ETFs. In some cases, these "newer" offerings have surpassed the older offerings as is logical.
IBIT is the new champion - by the AUM, average volume and ER. M*, Yahoo Finance and ETFdb are all showing 12 bps ER - I suppose taking into account waivers and graduated fee schedule - I haven't checked the details recently. So, FBTC to IBIT may be a better switch than to BTC. There may be some TLH involved too.