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Duration sell-off and portfolio positioning

By Thomas Koehler, CFA posted 03-14-2012 14:11

  
We all know that the duration rally was a very tightly wound trade and it has been slowly unwinding across the credit spectrum. True Treasury duration is experiencing some of the heaviest selling along with investment grade debt. While this can continue, I would use the sell-off to identify the most enviable portions of your debt portfolio that hold modest duration and add to positions.
Tom Koehler
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