TIP - TIP: A Play On Commercial Real Estate Credit Events
2024-06-27 11:12:09 ET
Summary
- High for longer with the Fed likely to err on the side of caution isn't going to be great for TIPs, even relative to unindexed bonds when inflation starts falling.
- A possible area where TIP would do well is if there's a credit event in commercial real estate that forces the Fed to consider its growth mandate more.
- However, how a credit event would ripple through the economy is almost impossible to predict, where the impact on the wider economy would be a factor for TIP performance.
- Durations are even quite long on TIP, so we'd stay away as markets come to grips with higher for longer.
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TIP: A Play On Commercial Real Estate Credit Events