mercredi 1 avril 2015
Negative US bond yields? I wouldn't rule it out: Pro
Posted on 16:17 by nice news
Guggenheim's Scott Minerd said Wednesday he is worried that the overflow of negative bond yields in Europe could push U.S. Treasurys to "unsustainable levels."
"If 10-year bunds were to go to a negative yield, could we see U.S. Treasurys and the 10-years at 1 percent or lower?" he asked during an interview on CNBC's "Squawk on the Street." "I wouldn't rule it out."
Minerd, Guggenheim's global chief investment officer, said negative yields are primarily a reflection of the inconvenience of cash storage. It's cheaper for people to store their cash in bonds rather than pay for a vault.
Read MoreGross rips 'hostile, artificially priced' market
The key to fixed income, he said, is to buy long-duration, high quality bonds while offsetting them with a lot of short-term, floating rate securities.
"If 10-year bunds were to go to a negative yield, could we see U.S. Treasurys and the 10-years at 1 percent or lower?" he asked during an interview on CNBC's "Squawk on the Street." "I wouldn't rule it out."
Minerd, Guggenheim's global chief investment officer, said negative yields are primarily a reflection of the inconvenience of cash storage. It's cheaper for people to store their cash in bonds rather than pay for a vault.
Read MoreGross rips 'hostile, artificially priced' market
The key to fixed income, he said, is to buy long-duration, high quality bonds while offsetting them with a lot of short-term, floating rate securities.
Negative US bond yields? I wouldn't rule it out: Pro
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