Join institutional investors, analysts and strategists from the world's largest banks: Subscribe today
Already have an account? log in
Who Wants These Bonds?
Bonds. Nobody wants them.
I shouldn't say nobody. Maybe Lacy Hunt wants them. Or Albert Edwards. Nobody else, though.
Why not? What's wrong with bonds? Well, they're in the early stages of a secular bear market. Or so insists BofA's Michael Hartnett, who spent the latest installment of his popular weekly "Flow Show" series repeating himself, as he's wont to do.
That's not necessarily a criticism. I spend all week repeating myself. If you can do it effectively, and people enjoy it, then hats o
I get 5.4%+ on my money market (nearly triple the average blue chip dividend rate) and 4.9% on my muni portfolio, equal to 7.5% pre-tax in my bracket. So if anyone has extra bonds they don’t want at those rates, send them on over.
I struggle to see why <5% long Treasury yields are attractive. Either in isolation, or relative to >5% short Treasury yields, or relative to inflation trend.
If long Treasury yields are not attractive, then long corporates at <100 bp spread to Treasuries don’t seem attractive. Again, in isolation or relative.