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Quotes from the news wire:
While issuing debt to buyback stock has been a popular strategy, issuing debt to make pensions whole could be the next trend in fixing balance sheet risk.
– Shyam Rajan
Even if core inflation stays where it is, buying a TIP will return 70 basis points more than buying a nominal Treasury bond.
Valuations are very attractive. Breakevens are still cheap by any metric.
In the next two months I would still say Treasuries. But if the pressure continues beyond that, it's non-U.S. assets, and in the U.S. space it's definitely corporates and agencies.
The way to trade the reserve flow story is through relative value trades, such as the swap spread tightening in Treasuries. I would imagine it plays out the same way in other markets too.
The weakness in the stock market over the last two days has helped push Treasuries prices higher.
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"Shyam Rajan Quotes." Quotes.net. STANDS4 LLC, 2020. Web. 29 Nov. 2020. <https://www.quotes.net/authors/Shyam+Rajan+Quotes>.