5/16 Dying to talk about Bonds
Treasury drying up fast
Starting off with the Markets today, lots of topics covered including TGA days till empty. Reflection is at the end because it is a very personal reflection of my dream.
Markets
Can we talk about bonds please? I’ve been dying to talk about bonds with you all day, Mac. (Can we take a sec and appreciate the true masterpiece of It’s Always Sunny?) Let’s review our bond portfolios that we look at when considering macroeconomics, but before we get to that, SVB CEO is scheduled to testify in front of congress tomorrow. His prepared remarks unsurprisingly blame the fed reserve for the banks failure. I will be tuned in and watch the shit show unfold, and am thinking about doing my next podcast as commentary on the hearings. A good old fashioned roast from the wizzy wiz himself lol. Anyways let’s review:
The index is composed of U.S. dollar-denominated, high yield corporate bonds. High yield bonds are also known as junk bonds. They are bonds that are rated below investment grade by a credit rating agency. This means that they are considered to be more risky than investment grade bonds. However, they also offer the potential for higher returns.