How to Manage Falling Treasuries
Wednesday, September 14th, 2016 Categories: Correlation, Duration, High Yield, US Treasuries
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.