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Gaining Perspective

What Explains the Outperformance of Loans?

Apr 1, 2024
14:06

Guessing the direction of interest rates is no easier than any other tactical or market timing decision. The yield on the benchmark 10-year Treasury note is just under 3.9%. That is about 100 basis points less than it was a few months ago. Fed policy is uncertain, inflation has not been fully controlled, and fiscal deficits loom as a long-term risk for yields to go higher.

Those factors argue in favor of an allocation to floating-rate notes. My guest today will help us explore this asset class, its opportunities and its risks.

Show Resources:
Here are some links to learn more about EVLN and Eaton Vance


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