How to Manage Falling Treasuries

Wednesday, September 14th, 2016

Buy Credits where volatility is still falling

We think that the best way dealing with falling Treasuries is to stay in fixed income and to seek out situations in the credit markets, which are priced for high levels of risk, and where volatility is still falling. The problem with reducing duration or buying inflation-linked bonds is that the Fed and other central banks can force you to unwind it if they want to.

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The Way We Live Now

Wednesday, September 7th, 2016

Positive correlation meets asset allocation theory

Most of the major developed equity markets, except the US, are positively correlated with their local government bond market. This makes portfolio diversification very difficult, but the basic conclusion is that if you think government bonds are going to fall, you should expect equities to fall further.

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