Another interesting read Joe!. how would you interpret investing opportunities in an up warding sloping YC environment? frontend would have lower rates & back end long duration (YTM) which are factors that should increase bond convexity.
Thanks again Emmanuel! Well, if front rates are back to where they were in '20 & '21, then it would be a similar environment, risk on for the most part- but that heavily depends on two factors, inflation levels in US/DM and also growth levels (non farm data, corporate prof, consumer/consumption data etc). That would dictate what investors are thinking and therefore positioning for the future, low rates doesn't automatically mean the economy runs into a bull market- we can easily fall into a similar position as Japan. Low rates & a weak economy
Another interesting read Joe!. how would you interpret investing opportunities in an up warding sloping YC environment? frontend would have lower rates & back end long duration (YTM) which are factors that should increase bond convexity.
Thanks again Emmanuel! Well, if front rates are back to where they were in '20 & '21, then it would be a similar environment, risk on for the most part- but that heavily depends on two factors, inflation levels in US/DM and also growth levels (non farm data, corporate prof, consumer/consumption data etc). That would dictate what investors are thinking and therefore positioning for the future, low rates doesn't automatically mean the economy runs into a bull market- we can easily fall into a similar position as Japan. Low rates & a weak economy