2min chapter

The Compound and Friends cover image

The Game Has Changed

The Compound and Friends

CHAPTER

Inverted Yield Curve Could Cause a Recession

The yield curve is actually a really good indication of what you want to do in fixed income. When it's inverted, you actually want to extend duration. In the 10 year, you're sitting there saying, hey, guess what? Nobody would buy that at 3.5% today. The risk of rolling is a real risk but not even a risk for bond investors.

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