But Who Will Buy All The Bonds?

That is the title of a piece that I wrote for my good friend Luke Kawa, Markets Editor of Sherwood News. It’s not behind a paywall so please go there to check it out (it’s not very long — less than 1000 words). One additional point—I don’t define them as such, but the piece does have a couple of paragraphs on the difference between fixed-income assets that perform well in an economic slowdown (Rate Product), and fixed-income assets that perform poorly in an economic slowdown (Credit Product). I think that for all the “it depends” surrounding specific features of any single bond and the broader economic cycle (I get into these as well), this is a basic market heuristic that is very useful. It is also a distinction that I think is under appreciated, particularly given its importance. And therein lies a key part of the answer to the question above.

Gratuitous dad jokes, at least one of which is topical.

Now Is The Time For All Good Men To Come To The Aid Of Risk Parity.

Not to be confused with time during Covid in the UK when it went “Now Is The Time For All Good Men To Come To The Aide’s Party.”