If anything, the record low rates make me appreciate the role of long term treasuries in the PP even more. They're primarily driven not by the interest rate they pay but by changes in interest rates, and because of bond convexity they're more responsive than ever. That may not be appealing for portfolios that use bonds as ballast against stock volatility, but for portfolios like the PP that balance multiple volatile assets the low rates actually help.barrett wrote: ↑Fri Mar 06, 2020 8:47 am Not sure where to post this so I'll just resurrect this old thread...
We used to discuss at what level of yield would people start selling off their long bonds. Are we there yet for any of you? As I write this, the yield has just dipped to 1.25% (!!!!). Any sellers? Thanks.
Here's a quick primer: https://portfoliocharts.com/2019/05/27/ ... convexity/