523HRR wrote:Just curious. If this was done in a taxable account, would this exchange not be treated as a taxable (sale/purchase) event? Or can the original cost basis be retained? Thanks.
kmok wrote: I think this the the confusion you have.
kmok wrote:Perhaps you should provide a direct link, otherwise what am I suppose to say other than I disagree
Valuethinker wrote:The intuition being that the difference in spread over the guvvie has to cover:
- default risk
- liquidity risk
- expected real return (inflation risk is built into both bonds)