Alternative Investments? Sovereign Bonds At A Premium, Duration Is Climbing As Rates Fall (But MBS Duration Falls With 10Y Yield), House Prices Slowing

Rising bond prices (premium) are spooking some investors as global bond yields plummet. The fear of a global slowdown/recession is spawning interest in alternative investments.

prembomds

As the 10-year Treasury yield drops, the duration of US Treasuries rises. On the other hand, the duration of Agency MBS is falling.

durationmbs.png

And with national home price growth declining to the lowest rate since the beginning of The Fed’s QE3, where do we put our money?

fedhouis

Firms like AQR offer products in the alternative investments sphere.

AAA Global Portfolio Space

 

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