Odd Lots cover image

Odd Lots

Bill Gross on the End of the Great Bond Bull Market

Sep 13, 2023
47:08
Snipd AI
Bill Gross, the Bond King, discusses the state of the bond market, reflects on his career, compares current inflation to the late 70s, explores the possibility of rate cuts, shares his daily market routine, discusses investment opportunities and private credit, and concludes with insights on his long-term investment strategy.
Read more

Podcast summary created with Snipd AI

Quick takeaways

  • Self-hedging with short-duration bonds created a golden opportunity in the bond market during the high-interest rate period of the 1970s and 1980s.
  • In a bear market, both relative and absolute performance are important, with the latter crucial for retaining clients and navigating market cycles effectively.

Deep dives

Bond Market in the 1970s: High Interest Rates and Self-Hedging Bonds

During the 1970s, the bond market experienced high interest rates, with rates reaching 15% in 1981. However, due to the short duration of 30-year Treasury bonds at the time, it was possible to self-hedge. For example, even if rates went up to 18%, investors wouldn't lose money. This created a golden opportunity in the bond market.

Get the Snipd
podcast app

Unlock the knowledge in podcasts with the podcast player of the future.
App store bannerPlay store banner

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode

Save any
moment

Hear something you like? Tap your headphones to save it with AI-generated key takeaways

Share
& Export

Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode