Redemption liquidity & opportunity cost
Work out what waiting for your money costs. When you redeem, the cash takes time to arrive and earns nothing while it is in transit. Enter your ticket size and this shows how long each product takes to settle, and what that wait is worth in money against a product that pays out the same day.
Scenario
Pick the products first, then set your ticket size and the rate you could earn elsewhere. The results below show what you give up while waiting for redemption money to arrive.
Products with no issuer redemption are excluded: their exit is a secondary-market question, not a settlement one.
What the cash would earn if it were already back. Short-term risk-free is the usual reference.
What choosing Siemens AG Digital Bond due 2027 over Siemens AG Digital Bond due 2027 is worth on $10.0M: a 375-day settlement difference, earning 5.20% elsewhere.
days between fastest and slowest
on $10.0M at 5.20%
When the cash is actually usable
Each bar runs from placing the redemption to the money arriving. The shaded part is the time your cash is in transit and earning nothing.