bonds

“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…”

“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.”

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

“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…”

“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…”

“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…”

“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…”

“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.”

“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 …”

“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 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…”

“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.”

“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.”

“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.”

“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.”

“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…”

“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%.”

“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.”

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

“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.…”