The Traderszone Network

Published in TZ Latest News 23 February, 2017 by The TZ Newswire Staff

50y and 100y UST bonds, do you like it?

Mnuchin is starting to sound more serious about the possibility of huge duration bonds. I can see this being a very interesting way to decrease capital demands for people that need to hold a certain amount of bonds/duration

Lets say I estimate I need to have 20% of my portfolio allocated to the 30y UST bond. With an 100y bond, I might be able to only allocate ~6-8% (or something along those lines), freeing up 13% in cash (but retaining the same duration exposure). I then can use that cash…

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