Morgan Stanley IM: Is it Finally Time to Get Long of Bonds?
Jim Caron, Co-Lead Global Portfolio Manager and Co-Chief Investment Officer, Global Balanced Risk Control Team, shares his macro thematic views on key market drivers.11.10.2023 | 06:31 Uhr
- Get long of bonds? No. Add duration? Yes. There is a big difference.
- For those who have followed my audiocasts this year, you will know that we have advocated being underweight - or short - duration all year.
- Our target duration has been 3 years compared to an index level of neutral, about 6 years. This equates to an underweight of duration of 3 years.
- As bond yields move close to 5% for the UST 10-year, we think this is a good opportunity to reduce the underweight and add duration to portfolios.
- However, we are NOT yet advocating moving above index duration levels or going long. Why? We discuss in this audiocast.
See below for important disclosures.