Navigating the Yield Paradox: Why I’m Buying 20 & 30-Year Treasuries and Holding Older Discounted Debt
The ongoing conversation around interest rates has fractured into two distinct narratives. On one side, monetary policy debates focus on keeping rates high to cool consumer spending and curb inflation. While higher borrowing costs hit big-ticket consumer items like real estate, vehicles, and auto insurance premiums, everyday prices remain sticky. On the other side of the aisle lies a massive structural opportunity for income-focused investors: elevated Treasury yields . Yields on long-term debt are sitting at heights not seen in nearly two decades. For individual investors looking to lock in predictable cash flow and build a resilient capital base, this macro setup offers a unique double-barreled advantage... combining high multi-decade income with massive potential for secondary market capital gains down the road. Income Generation, Liquidity, and Execution In my personal portfolio, I structure my fixed-income allocations across two distinct asset classes, executing through...