Wall Street Managers Are Learning to Love Treasury Bonds Again
- Highest Treasury coupons since GFC provide appealing income
- Yet Fed hikes, sticky inflation remain a risk for Treasuries
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Slowly but surely, bond haters are vanishing across Wall Street — even as fresh market havoc remains a distinct possibility next year if still-raging inflation forces the Federal Reserve to ramp up policy tightening anew.
Undeterred, money managers are starting to rebuild their exposures across the battered $24 trillion world of Treasuries, on the conviction that the highest payouts in over a decade will help cushion portfolios from the damage wrought by further interest-rate hikes.