September 20, 2022
Bond markets are under pressure, in anticipation of an aggressive rate hike by the US central bank

The expected stop at 3-4% will probably not happen, the released data showed an increase in inflation, which means that the FED will have to take unpopular measures and tighten liquidity. There may even be an increase of 0.5-1% at once.

The fact that we are starting to live in times of expensive money will take some getting used to. It is possible that we will see the rate at 5-6% next year, and yes, it will be a shock to the market, but there will be no other options.

We sold all our positions on bonds yesterday and will stand aside from this market for now, until clarity appears.

This situation will increase the risk of defaults for many issuers, so I recommend that everyone carefully monitor their so-called conservative investments.