“If the bond market is offering me mid-5% yields, I want to start getting in… high-5% → more… 6% → even more.”
JB
Jim Bianco
The Master Investor Podcast with Wilfred Frost ·
Jim Bianco · The Master Investor Podcast with Wilfred Frost · The Bond Pivot: Jim Bianco On Why It’s Time To Start Buying Bonds
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set a rule to increase bond allocation as yields rise: buy when yields hit mid-5%, add more at high-5%, and even more at 6%+
mid 5% yield, high 5% yield, 6% yield
“If the bond market is offering me mid-5% yields, I want to start getting in… high-5% → more… 6% → even more.”
“…if you're worried about yields further rising, well, you just buy floating rate bonds. So you're not exposed to that duration.”
“I think a lot of people view the QE ... as primarily working through the balance sheet ... but ... yields would rise ... investors sell bonds because they're not as excited”
“He explained… 'as the 10-year becomes more attractive, it becomes much more difficult for these highly indebted neoclouds to raise money' and noted the 15% bond yield”
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