Bonds

“War keeps the price of oil volatile. Volatile oil prices feed the risk of higher inflation, and inflation risk pushes the rate of the bonds higher. Higher bond rates equal higher mortgage rates. So that's how the war ties directly to your interest rates.”

“This is a long-term investment asset class. This is not liquid credit. The way people should be thinking about private credit is, think about my portfolio. Let's use sixty-forty. The part that's 60 is for growth. Then there's the part that's 40, the defensive.…”

“We're more equity loving. We're not big on bonds. Anything that's on the leverage side is not exciting for us.”

“We do a annual asset allocation benchmarking survey and ask, hey, between Stocks, bonds, cash, crypto, private credit, private equity, oil and gas, et cetera. Where do you keep your money? And I'd say the bond allocation is well south of 10%.”

“I don't own Any bonds, man. I'm not going to own bonds until I retire.”

“So I bet you that in the not too distant future, people will be able to automatically invest in bonds.”

“Funnily enough, because we're the only ones that still have that, and so obviously that's been a great differentiator for the last couple of years, especially as yields have gone up”

“They've outperformed so much that the rebalancing that you're going to see in every pension fund, in every endowment, away from these strategies back towards listed equities or back towards, frankly, just bonds, it should be relentless.”

“So, so, so, so you're seeing younger generations using it less as a, hey, I'm gonna now actually hold the bond to maturity for 10 years from now, and more use like these account types that we've created for, you know, just like earn some yield on your stuff, y…”

“In, in, in, in, in, in, in, in, in, our stock went down nine to nine percent. Our bonds were trading at like 40 cents on the dollar.”

“But the first and foremost in your portfolio should be stocks. You can have bonds, you can have property, you can have gold, you can have many other investment objects, but the primary part of your portfolio should be stocks.”

“Asset allocation doesn't tend to vary that dramatically. Most endowments tend to have an equity bias. Their bonds are going to be somewhere between five and 10%.”

“When we look at the world going forward, we see more inflation, more volatility, probably wars, at least in localized places more frequently, deglobalization, more populist governments that will direct capital, all those things detract from economic growth, al…”

“But if you look over the last three years, actually diversification has been significantly negative because obviously bonds and equities have been correlated in a bad way, but alpha has been really, really strong.”

“All investments are really valued as the present value of future cash flows, and that's true for bonds, it's true for stocks, and what the Fed was doing last year was raising the cost of capital, and that requires a reset for all assets, and that's exactly wha…”

“If we do get a recession down the road sometime in 2024, Then you would think that bonds will do what they normally do, which is to protect investors from volatility, and again, last year, bonds were in the eye of the volatility storm, but now that yields are …”

“Who's going to buy all these bonds that the United States is selling in 2023, 20 24, 2025 with a rising budget deficit before the recession comes? And my answer is everybody. Everybody. You give people the right incentive, the right coupon, they will buy it.”

“Late into 2021, All these institutions were buying huge amounts of bonds. Why? Because consumers weren't getting normal loans and you know, because they were flush with printed cash.”

“And that's why capital flows are moving hugely right now from equities into bonds, especially if we're going to a recession, which is inherently deflationary.”

“When you're buying used with limited exception, there's no bad bonds, just bad prices now. And if someone's a little less good at managing a CLO, we'll just back up our bid five points and maybe that offsets it.”

“Dude, I'm 80% Vanguard index funds, 20% bonds. That's all, and then I built private businesses.”

“Bonds aren't a diversifier anymore. There's not many short sellers left. You mentioned Jim Chana's, who's a legend and incredible, but there are not many short sellers left. It's very hard to find diversifying strategies anymore.”

“And ironically, I think the best downside risk protection is commodities, which is weird because commodities should be correlated to growth. So when growth suffers, commodities should suffer with them. That's not really a good hedge the way bonds were. But I t…”

“Well, for governments carrying the interest cost for years, I joked behind closed doors and occasionally on stage where it wasn't being videotaped that there'd be no bonds in 30 years. I still believe that.”

“And that's why coin search wants to evolve from a crypto only company to a crypto first company today. Crypto is what we are known for, but tomorrow we want to add mutual fund stocks us equities bonds into our ecosystem, helping user diversify.”

“The world is bad for investors going forward. It's been great looking backwards. So take that, but recognize going forward, the real yield priced into everything is bad. People look at the real yield in bonds and say, Why would I want a negative one, negative …”

“I'm not going to put a bunch of my money in bonds, you know, especially with as low as the yields are today. I think that maybe as I'm nearing retirement, I want to soften the blow, right? It just makes the ride a little less bumpy, but I prefer just to have c…”

“Given low returns on, on bonds and cash, I could see investors using infrastructure as a replacement somewhat for that, and I think infrastructure is going to be a very interesting place to be in the United States, just from a public good point of view.”

“There are historical examples in Japan, for example, where yields have been low for a long time. And returns have actually been quite attractive because you've had persistently steep yield curves. And as you've rolled down the yield curve, you get the yield pl…”

“I was with Mike Milken recently, and he specifically said the reason he likes bonds as opposed to stocks from an investment standpoint is, I don't need other people to buy them. I just need them to pay me off. So I'm happy being the only person buying them. In…”

“I say to people regularly, I don't think there'll be bonds and everything will be free in 30 years. I say it not as a fact or as a guess, but it's something I do believe is coming because of my belief in the impact that nano and three D printing and artificial…”

“This is uncorrelated with Oil, gold, emerging market currencies, the equity markets, bonds, it's really just uncorrelated with everything else, and it's because it's a totally new phenomena.”

“Globally, there's six trillion dollars of bonds that are returning negative yield, and so there's six trillion dollars worth of money in financial instruments in the world where you have to pay for the privilege of owning them.”

“That really is the big innovation, is this idea that digital wallets will be able to hold all different kinds of assets. You'll be able to hold shares of stock and bonds and pieces of real estate, maybe the mortgage to your home, like all these different sorts…”

“You can see it easily in the state and city funds that are seriously underfunded, even if they're assuming a seven, seven and a half percent rate of return, which they're not going to get, because they've got 25% in two and a half, three percent bonds. They're…”

“So our beloved alma mater, Yale University, has next to no money in public equities or bonds.”

“So I was 20, and I was eating breakfast, lunch, and dinner at the office, and I was actually selling, I had a desk on the bond trading floor, and I was selling bonds as well as doing, working with clients. So before I could actually drink, I was selling bonds.…”

“But now that we are a CIT, we're going to reintegrate that as a substitute for bonds. And reduce the amount of duration risk in the portfolio.”

“And where we end up is sort of a ten-year expected return on equities of Five-ish, let's call it five and some change, a little more for international stocks. Bonds are sort of three-ish. So I think looking ahead, the simple sixty-forty portfolio is going to g…”