‘Who on Earth Bought This?’ Franklin Debt Chief Warns of Danger
- Desai sees case for U.S. rate hike, 3% for 10-year Treasuries
- Duration bets at ‘risk’ if economic growth rebounds: Pimco
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As Wall Street trumpets this relentless era of ultra-cheap money, contrarian Sonal Desai has a warning for her peers plunging into long-dated debt like no tomorrow.
“Markets are over-estimating the Fed’s ability to anchor long-end rates -- they’re also over-estimating the Fed’s fear about the underlying real economy,” said the chief of Franklin Templeton Investments’ $150 billion fixed-income unit.