I sensed familiarity with the recent fate of fixed income benchmarks such as Austria’s hundred-year government bond.
For this reason, when bond yields are low, the sensitivity of capital prices to inflation and interest rate shocks is high, and vice versa.
The appreciating greenback has been a drag on much of the global fixed income universe for the past decade.
The real reason to go into fixed income investing, I explained, is that you get to tell governments what to do.
Now that the end of monetary anaesthesia has awoken fixed income from its 15-year coma, I told the MBA students, you’ve got your chance.
Persons:
Bonds, That’s, Torsten Slok, GMO’s, Liz Truss, ”, Bill Clinton’s, James Carville, you’ve, Peter Thal Larsen, Streisand Neto, Thomas Shum
Organizations:
Reuters, Treasury, Reuters Graphics Reuters, Apollo Global Management, U.S ., JPMorgan, Economist, UK, Thomson
Locations:
U.S, Venezuela