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USFR - USFR: Floating Rate Bonds Will Benefit If The Fed Disappoints
WisdomTree Floating Rate Treasury Fund
2024-01-22 15:22:53 ET
Summary
The WisdomTree Floating Rate Treasury Fund holds a portfolio of floating rate bonds with attractive yields relative to stocks and Treasury bonds.
Equity and Treasury investors have attempted to front-run the Fed easing cycle, but expectations now seem too aggressive, setting up the risk of a decline in long-duration assets.
Fiscal deterioration poses a risk to the USFR as it could force the Fed to cut rates even if inflation remains elevated to prevent a surge in government borrowing costs.