Fixed income damage largely done at 4.75% yield
The guest's view was that while the 10-year Treasury yield could still rise, a lot of the damage for bond portfolios has already been done at current levels near 4.75%.
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The Callback
Credit spreads signal market complacency
37 weeks between these two statements.
The guest's thesis is that current absolute tax-adjusted yields of 6-7% for top-bracket investors look attractive relative to other asset classes from a long-term perspective.
The guest's view was that while the 10-year Treasury yield could still rise, a lot of the damage for bond portfolios has already been done at current levels near 4.75%.