How Bonds Perform During Rate Hiking Cycles (Answer: Not Well) | Pirates of Finance
Corey Hoffstein and Jason Buck unwind and explore the finer points of finance, such as the risk/reward of investing in bonds during hiking cycles, the $HYG Drawdown fallacy, and the "Two Times Duration Minus 1 Rule." With boatswain Jack Farley, they entertain the possibility that the global economy is headed for a "commodity supercycle," and they consider what such an environment would mean for correlations and investment styles such as CTAs (Commodity Trading Advisors).
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Follow Jason on Twitter @JasonMutiny
Follow Corey on Twitter @choffstein
Follow Jack on Twitter @JackFarley96
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Timestamps:
(00:00) Corey's Conference
(5:40) Cathie Wood's $ARKK Call
(8:30) The High-Yield ($HYG) Drawdown Fallacy
(14:00) Bond Returns During Rate Hiking Cycles
(22:40) The "Two Times Duration Minus 1 Rule"
(29:30) The Commodity Supercycle
(50:50) CTAs as an Inflation Hedge
(1:00:31) Commodities Congestion Trades