Industry Voices: Playing the Long Game: The Case for Ultralong Treasuries

Pensions & Investments

Ultralong Treasury bonds could become a major boon for the institutional investment market throughout the US as well as around the world if the bonds are executed well, according to an article for Pensions & Investments co-authored by Jeff Blazek and Alex Pekker, of Cambridge Associates’ pension practice. Blazek and Pekker address the US Treasury Department’s consideration of using “ultralong” bonds – which was met with reservation by the Treasury Borrowing Advisory Committee – suggesting that ultralong Treasury bonds would generate significant interest from investors, particularly corporate pension plans and insurance companies. The article outlines how investors can seek to manage interest rate risk, price ultralong credits, and keep an eye on changes in 30-year yields.

Read the full byline article here.

Read the related Cambridge Associates research piece, “CA Answers: Playing the Long Game—Should the US Treasury Issue Ultra-Long Bonds?” here.