Bond Math: Why Rising Treasury Rates Accelerate Income Growth
Rising Treasury yields have driven down fixed-income prices, creating higher-yield opportunities for income investors without increased credit risk. Entergy Louisiana bonds now offer a 6.7% yield-to-maturity, with spreads to Treasuries much tighter than at issuance, reflecting market expectations for temporary yield spikes. Funds like DMB and PIMCO funds trade at discounts to NAV, amplifying volatility and offering entry points for long-term buyers as NAVs adjust to higher rates.
Seeking Alpha10/13/2026Neutral