The Case for Investing in U.S. Bonds

The video discusses the current state of inflation and debt, noting that US debt to GDP has been decreasing since 2010. It emphasizes the importance of a balanced bond portfolio, with a focus on credit, rates, and FX. The speaker highlights the allocation of risk in their portfolio, with a significant portion in credit and a shorter duration to minimize interest rate exposure. The discussion also covers US holdings, particularly in riskier securities, and a contrarian bet on inflation through TIPS, expecting central banks to reflate economies.

What is the current trend of U.S. debt to GDP since 2010?

• It has fluctuated significantly.

• It has remained stable.

• It has been decreasing.

• It has been increasing.

What proportion of risk is allocated to credit in the discussed bond portfolio?

• 10% to 20%

• 20% to 30%

• 30% to 40%

• 40% to 50%

Why does the portfolio maintain a shorter duration?

• To align with market trends.

• To decrease exposure to interest rates.

• To focus on long-term investments.

• To increase exposure to interest rates.

What is the approximate percentage of the portfolio that is below investment grade?

• 40%

• 30%

• 10%

• 20%

What is the contrarian bet mentioned in the portfolio strategy?

• Investing heavily in energy.

• Avoiding U.S. credit.

• Holding a position in TIPS.

• Focusing on distressed assets.