jahowle

Negative Real Yield 5-Year TIPS: Betting On Higher Inflation, Price Appreciation

George: Don't you find it interesting that these still trade at huge discounts given the quality of their assets? When traders start moving out of TIPs and they return to a more reasonable real rate of return we are going to see the NAV drop which could put even more pressure on the market price. I hate to sell my positions at such deep discounts but I surely do not want to be holding when the market turns. An inflation driven bear steepening in the Treasury market is coming at some point.