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I haven’t viewed default as a real risk beyond some true craziness happening like the U.S. willfully deciding to default on a payment. Better yields are a good
by tmountain 1y ago
I haven’t viewed default as a real risk beyond some true craziness happening like the U.S. willfully deciding to default on a payment. Better yields are a good incentive to buy bonds now but they simultaneously lower the value and desirability of exiting bond holdings. They’re also correlated to inflationary risks, so I guess it depends on your outlook on the future of the dollar too.
- Galanwe 1y ago> I haven’t viewed default as a real risk beyond some true craziness happening like the U.S. willfully deciding to default on a payment. Well there are many ways to default, and many shades of default. I can very well see the current administration argue that China, for whatever reason, owes the US, and thus should be compensated by confiscating bonds.