🔺 What to do when markets are at an all-time high? Find smart bargains, like these.See Undervalued Stocks

BlackRock's Rieder: Ultralong bond not that big of a deal

Published 05/04/2017, 09:30 AM
© Reuters.  BlackRock's Rieder: Ultralong bond not that big of a deal
TBT
-
TLT
-
FLAT
-
GOVT
-
STPP
-
TAPR
-
EGF
-
FIBR
-
  • The Treasury Borrowing Advisory Committee's recommendation for 20-year bonds to 'fill in the yield curve' is far more impactful and thoughtful than the idea of 50-year paper, BlackRock's CIO of Global Fixed Income Rick Rieder (who used to sit on the TBAC) tells Bloomberg.
  • Yes, Treasury could do some ultralong issuance, but the amount of $10B-$15B vs. a $14T Treasury market isn't significant, and wouldn't impact how Rieder and team thought about rate exposure or the yield curve.
  • There would be demand, though, given the need for pension funds and insurance companies to have longer-dated assets alongside their obligations.
  • ETFs: PLW, STPP, GOVT, FLAT, FTT, EGF, TAPR, FIBR, TLT, TBT
  • Now read: Why You Should Be Long The Long Bond


Original article

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.