BILS - 'Blue Wave': The Other Side Of The Trade
- Examine the possibility that a "blue wave" is not necessarily "growth-friendly" and how fixed-income investors should plan for such an outcome.
- A "blue wave" results in a potentially higher tax, an increased regulatory environment and a less "business-friendly" setting, which could ultimately result in slower economic growth.
- If the UST market does embrace "the other side of the trade," investors should take a more "strategic" approach to fixed-income asset allocation and be mindful of the current and prospective shape of the yield curve (relatively flat now, potentially steeper later).
For further details see:
'Blue Wave': The Other Side Of The Trade