How Low Can the 30-Year Treasury Yield Go?

Posted by Michael DePalma (pictured) and Philip Chasparis of AllianceBernstein (NYSE: AB)

Even as the US Federal Reserve has continued to taper bond purchases and hint at eventually tightening monetary policy, long-term US Treasury yields have not only continued to fall, but outperformed all other maturities from two-year to 10-year bonds. Investors shouldn’t bank on them falling much further.

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Building a Better Passive Mousetrap

Michael DePalma (pictured) and Richard Abramson

In a recent blog, Passive Management Does Not Equal Passive Investing, we showed how passively managed portfolios actually create an active investment in which volatility isn’t benign and risk exposures can vary wildly over time. So if we could fix the problem and reduce exposure to spikes in market volatility, would a passive portfolio deliver better result? (more…)


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Beware of the New Systemic Risk

Michael DePalma

It felt like there was nowhere to hide from the market declines last Monday, April 15, when stocks, bonds and commodities fell in unison across the world, well before the Boston bombings that day. We believe that this failure of diversification was instigated by increasingly powerful multi-asset funds, many of which use leverage, which may have become a new source of systemic risk for investors. (more…)


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