Morgan Stanley’s Caron Says Owning Duration Makes Sense Here

The video discusses the current bond market dynamics, emphasizing the role of the Federal Reserve's interest rate policy in influencing inflation expectations and bond yields. It highlights the potential economic impact of COVID-19 and the likelihood of a stimulus package. The speaker also outlines strategies for managing bond portfolios, focusing on long duration exposure and high-quality investment-grade credit to balance yield and safety.

What does HRZ HRZ signify in the context of bond portfolios?

What role does the Federal Reserve play in influencing interest rates according to the text?

How do inflation expectations influence bond yields?

What is the significance of a stimulus package in relation to bond portfolios?

What factors are contributing to the current bond portfolio strategy mentioned?