Bloomberg Surveillance · Monday, July 6, 2026
Despite the attractive yields on US Treasuries, the positive economic outlook and strong fundamentals in the credit market allow investors to look beyond government bonds. Corporate credit and securitized credit are highlighted as areas with significant focus and opportunity, benefiting from strong starting yields and the power of income generation.
“Now on top of that, our outlook for the economy is pretty good right now, and so with the fundamentals in the credit market, I think there is a lot of space to look beyond treasuries and to look at corporate credit, but also securitize credit is an area where we have a lot of focus.”
“I think that's a really good point just about the yields and the treasury market relative to history. And the reason why that matter is if you think about it right a few years ago, if you were to see a fifty basis point increase in the tenure treasure yield, that would essentially wipe out all of your income for the year. Right now, actually, if you look at the returns for the US treasury market, you know, the ten year yield is up about forty five basis points on the year, but total returns and treasuries is slightly positive.”