What to do with bonds right now? Just the opposite of what the federal government is doing.
That’s the sensible recommendation made recently by Raymond Kerzerho, director of research at PWL Capital. Reading the latest copy of the Finance Department’s Debt Management Strategy publication, Kerzerho noted that the feds are extending the maturity of country’s debts. In practical terms, that means issuing more and more 10- and 30-year bonds to lock in today’s low interest rates.