.........................................David Trone; Angela Alsobrooks The Maryland GOP has a shot against Alsobrooks, even though it's RINO NeverTrumper Larry Hogan running against her. At least former Governor Hogan has name recognition.
Posted on 05/18/2024 8:42:52 PM PDT by SunkenCiv
Insider trading activity has gained a lot of steam in the previous months... However, one politician already has them beat with a trade that could be the highest in the history of US political trades.
Representative David Trone has filed a series of purchases and sales of mainly government bonds that together amount to more than $97 million. Every trade was reported well past the deadline according to the STOCK Act, with some trades more than a year old.
According to data from the government trade tracker Nancy Pelosi Stock Tracker, purchases outweighed sales by over $70 million.
Trone is the Co-founder of Total Wine, the largest independent alcohol retailer in the U.S., has 259 stores, and is valued at $2.4 billion.
The U.S. representative for Maryland stepped down as CEO in 2015 and has focused on politics. He has spent over $50 million on campaigns and is currently running for a Senate seat, a race he is projected to lose.
He loaned $10 million to his campaign and reported a personal income of at least $20 million last year, which is five times less than his most recently filed trade.What is Trone's play with bonds?Trone might be betting on rising bond yields. In late May, Treasury bill yields for early June maturities rose above 7%, indicating high-risk premiums. After Memorial Day, these yields fell below 6%, and prices surged. Credit default swaps on Treasury debt also decreased significantly.
The Federal Reserve's efforts to control inflation, potential recession risks, and regional bank pressures influence the bond market.
Traders expect the Fed to hold rates steady in June. Despite recent volatility, Treasuries and high-quality corporate bonds remain attractive due to rising yields, especially in anticipation of a potential recession.
(Excerpt) Read more at finbold.com ...
He’s buying bonds big deal
China dumps largest amount of US Treasury and Agency Debt in history
https://finbold.com/china-dumps-largest-amount-of-us-treasury-and-agency-debt-in-history/
You’re posting useless garbage, big deal.
Apparently you know nothing about stocks and bonds
You wouldn’t buy bonds if you thought the yields were going to rise. You’d buy them if you thought the yields were going to fall.
Would you please explain? That sounds backwards to me. But I’m not exactly knowledgeable about bonds.
Considering T-bills have steadily risen since his purchases, it appears he made a poor investment decision, at least in timing the rates. And if his money is in T-bills, there’s not much he can do in congress to benefit his own investment. Maybe he bought into Biden propaganda that inflation was over and rates would fall.
If you buy a bond today with a fixed yield of 5%, and the following day the rate is raised to 6%, your bond is immediately worth less to anyone wanting to buy. Why would I pay face value for your 5% bond when I can purchase a 6% bond with higher yield from the issuer? So now, if you want to sell your bond, you have to offer a discount to offset your bond having a lower than market rate.
If you buy a bond that pays 3%, you are stuck getting 3% for the life of the bond. If before the bond is due the interest rate goes to 4%, then would be getting less than the market interest rate.
The market would then look at whether they would prefer to buy a new bond that pays 4%, or your bond that pays 3%. Obviously, your bond in that case would be less desirable. The market responds by offering less for your bond than they would for a new bond - they put what is called a “discount” on it. Even though the face value of the bond at maturity might be, say, $1000, they will only pay you $980 to make up for the interest they would lose if they bought a new bond
So, if interest rates are going to rise in the future, you would do worse off if you bought bonds that pay the current interest rate.
If, on the other hand, interest rates were going to fall, you would be better off if you bought bonds now, because then you would be locking in the current higher rate
“He’s buying bonds big deal”
exactly ... and Fed bonds at that ... not too much difference between that and buying/selling Certificates of Deposits ... no way to profit from “insider” information ...
George Soros made his money trading on inside info. Mr. Trone may be following that business model. People like this align themselves with people/things that help them personally, regardless of what they say or appear to be supporting.
BTT
.........................................David Trone; Angela Alsobrooks The Maryland GOP has a shot against Alsobrooks, even though it's RINO NeverTrumper Larry Hogan running against her. At least former Governor Hogan has name recognition.
Satan or hogan is satan. I prefer the true name, satan. If you have to lie about even your name hogan,....child killer
Thanks. I now understand.
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