The spread between 30-year US treasuries and 10-year US treasuries has fallen to just 60 bps which is the smallest spread in about 2 years. The spread between 30-year bonds and 7-year bonds is down to 79 basis points, again basically at 2-year lows. What is interesting is that the spread between 10-year and 3-month bonds is well off the lows made in 2016. On 7/8/16, this spread was just 108 basis points. Today, it stands at 193 basis points. So since last summer the long-end of the yield curve has flattened by about 25 basis points while the front end of the yield curve has steepened 85 basis points.
Assets in private equity and venture capital strategies have seen significant growth in recent years. In comparison, assets in the hedge fund industry have experienced slowing growth rates. Q2 2021 hedge fund letters, conferences and more Over the six years to the end of 2020, hedge fund assets increased at a compound annual growth rate Read More
Article by Eric Bush, CFA – Gavekal Capital Blog