6 ms·
What do you mean underreported? TLT losing value isn’t news. The average duration of TLT’s US Treasurys is ~20 years—if rates go up 1%, the bond principle value
by quickthrowman 4y ago
What do you mean underreported? TLT losing value isn’t news. The average duration of TLT’s US Treasurys is ~20 years—if rates go up 1%, the bond principle value goes down ~15-20%. The 20y treasury yield went from ~2% in Jan22 to 4% in Mar23, and TLT went from $150->$100 in the same time period.
Anyone who knows what TLT is likely knows about duration risk.
https://www.fidelity.com/learning-center/investment-products/fixed-income-bonds/duration https://www.fidelity.com/learning-center/investment-products...