Comments on: Ginnie Mae Investing

By: High-Yield Investing In a Low-Yield Environment

High-Yield Investing In a Low-Yield Environment — Thu, 22 Dec 2011 08:58:53 +0000

[...] only because most investors will not have the capital requirements to buy directly. I discuss about Ginnie Mae investing in more detail on my [...]

By: Investor Junkie

Investor Junkie — Wed, 28 Sep 2011 17:41:25 +0000

Hi Paul,

That is a question to ask the specific mutual fund. Generally with mutual funds you are only entitled to the interest of the ex-dividend date of the mutual fund, not the ex-dividend date of the stocks and bonds owned within the fund itself.

By: paul kayle

paul kayle — Wed, 28 Sep 2011 17:39:19 +0000

If you sell your ginnie mae mutual fund before the end of the month, are you entitled to the
interest earned to the sell date.?

By: Investor Junkie

Investor Junkie — Thu, 30 Dec 2010 00:32:26 +0000

Hi Bill,

Thanks for visiting.

Be aware of the difference between bonds and bond funds.

http://investorjunkie.com/3071/bonds-vs-bond-funds/

If we have a spike in interest rates (muni funds have recently taken a hit) this would cause a dip in GNMA NAV prices which would results in a decrease in your net return.

By: Bill

Bill — Wed, 29 Dec 2010 23:28:09 +0000

How timely!! Confirms my interest in selecting GNMA for my Rollover IRA. I’m tired to chasing dips at 70 yrs of age.

By: Investor Junkie

Investor Junkie — Mon, 01 Nov 2010 11:48:57 +0000

Hi,

15 – 30 years

http://www.totalmerrill.com/TotalMerrill/pages/ArticleViewer.aspx?TITLE=mortgage-backedsecurities

I’m not aware if they are any shorter maturity. They are callable bonds since the owner of the mortgage can prepay or refi.

By: dan

dan — Sun, 31 Oct 2010 17:07:55 +0000

Thanks for the article. Do GNMAs have varying maturities similar to treasuries? I noticed that the duration for the vanguard GNMA is low, like 1.9 years – implying relatively short-term investments. On the Wall Street Journal page all they show are quotes for “30 yr” GNMAs and they don’t provide a yield.
Thank you for any help you can give.

By: Investor Junkie

Investor Junkie — Sun, 14 Mar 2010 17:36:25 +0000

Hey Paul, thanks for visiting. I don't think your assessment is way off. The question is when will rate hikes occur? I think we have a least one year, because the FED will base a rate increase upon the unemployment number.

By: Daddy Paul

Daddy Paul — Sun, 14 Mar 2010 17:32:12 +0000

GMNA’s are a great investment with stable or dropping interest rates. They tend to act much like long term bond funds. Right now I think we are on the cusp of some rate hikes which will decay the principal values of GMNA funds.

By: Investor Junkie

Investor Junkie — Mon, 08 Mar 2010 17:54:23 +0000

Only time will tell on the inflation issue.

By: ParisGirl111

ParisGirl111 — Mon, 08 Mar 2010 16:59:07 +0000

I have never heard of Ginnie Mae before. I appreciate this post. Just curious, with an average of a little over 6% return, will this be anything after inflation?