
Non-linear returns
Grant’s Current Yield Podcast
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The Inverted Yield Curve and the High Volatility of Mortgage Bonds
Mortgage bonds and callable Muni bonds, high quality bonds are trading extraordinarily cheap because of the inverted yield curve. These are huge yields for securities that have basically no credit risk. If you want to make a bet on the curve inverting, you buy those securities as opposed to trade front end euros.
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