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Why the US bond market has become the decisive variable for portfolios that hold almost none of it.
By Shanu SHERWANI, Chief Investment Officer, Kneip Management
Most of what crosses a chief investment officer’s desk is noise. Occasionally something arrives that is not, and the difficulty is that it rarely looks urgent. It looks like a technical announcement about government debt issuance, and it gets filed under American politics by people with a European portfolio to run.
I would file the past month differently. The US long bond traded above 5% this summer, its highest in nineteen years, and an attempt to push it back down failed inside a single session. That tells us something about ground conditions rather than weather....
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