Forced Selling from Risk Parity Funds Will Push Up U.S. Real Treasury Yields, Says BofA

A sinking risk parity fund lifts all yields.
By
Luke Kawa

Should Bond Traders Brace for Bubble of a Lifetime?

Some $50 billion worth of bond sales from risk parity portfolios is just one of the reasons why Bank of America Merrill Lynch is flip-flopping on its favorite trade of 2016, now recommending that investors begin to short inflation-protected Treasury debt.

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