ESGB - Bonded But Not Indentured
2024-01-30 10:45:00 ET
Summary
- With the Fed cutting rates, at some point, fixed-income securities are likely to appreciate in price when their unwinding begins to take place.
- Investment-grade U.S. corporate bond sales just hit a record for January at $176 billion, breaching the previous January record set in 2017.
- Given the Treasury’s yield curve, you pick up an extra 10 basis points in yield given the current spread when you buy 20-year corporate bonds or municipal bonds.
Some records are broken when almost no one is looking. There has been plenty of talk about the “Magnificent Seven” but almost no mention of what has taken place in the bond markets. What is the most interesting aspect of this is that with the Fed cutting rates, at some point, fixed-income securities are likely to appreciate in price when their unwinding begins to take place....
Bonded But Not Indentured