ParaFin Corporation (PFNO)

[mdimport]

Who said anyone had to choose between anything? It was a simple presentation of risk/reward over time and the facts that 10-yr UST have rates trending toward 0% and are priced above par.

10-yr UST = Not so good on the risk-reward scenario in the event of a move up in the Fed funds rate (over par buyers face massive losses if that ever happens), nor on the current interest rate trajectory (interest is declining towards 0% -- now ~1.93% -- http://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yield ).

My guess: Fed funds rates don't increase, just like they haven't since June 2006, but interest payments continue their decline until the US hits negative interest rates.

http://www.bloombergview.com/quicktake/negative-interest-rates

PFNO: lowest price retail can buy is at $0.0001. Only ways it can move are up (eventually), or remain illiquid (as at present).