ZROZ / ZROZ: Adding Duration May Not Be Worth The Risk

We challenge the view that interest rate normalization accompanied by a Fed pivot will drive down ultra-long-term yields. Low long-term yields are an more_horizontal

ZROZ is an ETF vehicle, which invests in long-duration zero coupon U.S. Treasuries. Since the FED changed its stance on the monetary policy, ZROZ has more_horizontal

The economic data indicates a mild recession is likely to begin within two to four months. While the actual economic contraction is likely to be mild, more_horizontal

The first quarter was far better than expected but I do not believe it will last, as the long lags to monetary policy persist. First quarter earnings more_horizontal

On the surface, we have seen a revival in "risk assets" like equities and industrial metals, but the real story may be elsewhere. Momentum in long-ter more_horizontal

2023 is likely to be a year of pain for risk assets. The economy remains on track to enter recession. more_horizontal

ZROZ offers a type of levered exposure to long-term U.S. Treasuries, but it does not use actual leverage. This ETF owns Treasury Strips, which are Zer more_horizontal

Treasury bond exchange traded funds are gaining momentum on signs of more muted inflation ahead and lingering recession risks fueling a return to trad more_horizontal