Prepare For The Global Duration Sell-Off, Warns BAML

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Rupert Hargreaves
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“We remain bearish global duration,” that’s the view of Bank of America’s rates analysts Ralf Preusser and Shyam S.Rajan, who in this week’s issue of the bank’s Global Rates Weekly research report, explain why they’re selling long duration bonds. The average maturity of outstanding bonds has lengthened in recent years — with the likes of Austria and Argentina joining the 100-year club — as investors have sought out yield at any cost. When bond yields rise, the price of longer-dated debt falls faster than those of shorter-term maturities and investors exposed to this duration risk have been hit with a sudden shock…

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Sign up now and get our in-depth FREE e-books on famous investors like Klarman, Dalio, Schloss, Munger Rupert is a committed value investor and regularly writes and invests following the principles set out by Benjamin Graham. He is the editor and co-owner of Hidden Value Stocks, a quarterly investment newsletter aimed at institutional investors. Rupert owns shares in Berkshire Hathaway. Rupert holds qualifications from the Chartered Institute For Securities & Investment and the CFA Society of the UK. Rupert covers everything value investing for ValueWalk