“Make sure that you are in shorter duration debt… you bought duration… bonds can also be very risky… short of duration is a good idea at the moment.”
Bloomberg Money · Employment Traits of Gen Z, 'Juicy' Bond Yields, Americans Quit Bowling
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25:36
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What was described
recommend holding shorter-duration, high-quality first-lien debt and avoiding long-duration bonds like a 100-year Treasury
Said nearby on the same subject
“I measure that in the data through the co-movement between bonds and stocks… pre-2000 Treasury bonds were actually quite stock-like… post-2000 they were safe… now risk has gone up again.”
“As long as you make sure that you're up in high-quality private credit, high-quality private equity… investment grade… able to pay the higher debt servicing costs.”
“Thomas Bravo led the deal. The purchase price was $12.3 billion… financed with $4.6 billion in the syndicated first lien loan… 37% of the purchase price was funded with debt.”
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Said on The Real Eisman Playbook
Why it worked$12.3 billion purchase; $4.6 billion debt (37%)Share this moment
“The inflation component in nominal bonds plays an important role… when you hold nominal bonds, that's of course exposed… the increase in bond risks has some similarities… bonds and stocks have moved together.”