:'-D
I don't do bonds, but according to Sweden's main financial paper, both the 2 year and the 10 year yields around 2%. di.se (US ones, by comparison seem to yield around 4-5 % – so it appears that the market more or less takes central banks' rates at face value currently, apparently lacking real conviction about future direction of rates. But implicitly, they're betting on falling inflation by valuing bonds that way, no? And/or betting on central bank indifference to same.)
That seems like a good limited downside, large upside bet to me.
By the way, your post made me think of when Steve Eisman meets that CDS manager guy in The Big Short, and his comment afterwards: "Whatever that guy owns, I want to short it. All of it." (Or something to that effect.)
Time to re-read that great book again, perhaps... |
