Bloomberg Surveillance · Wednesday, July 15, 2026
An analyst suggests that bond yields are not high enough to compete with the significant earnings growth expected from stocks this quarter. They believe that longer-term yields need to increase to reflect higher growth and attract capital, arguing that bonds have a "stock problem" rather than vice versa.
“I don't think it's high enough. I know that sounds kind of crazy. I mean, I think what you're seeing. You know, it's interesting that conventional wisdom is that, you know, stocks might end up having a bond yield problem. I think bonds have a stock problem. I think in order to compete for capital with earnings growing, you know, what could be twenty two to twenty five percent this quarter, with margins expanding at probably the fastest rate in any of our careers. Gray hair, black hair, brown hair, whatever color hair you want. I think bonds ultimately have to offer a higher yield to compete for capital, and so I don't think we're in on the verge of a kind of fed hike cycle here, But I do think the yeld curve needs to steepen. I think longer yields probably need to drift higher. And I think it's okay. I think it's a reflection of higher growth.”