Why should one hold long-term bonds?
Head and founder of Regan Capital is Skyler Weinand, CFA.
It is a fixed income investment management company for institutional investors, family offices, foundations, university funds and high net worth individuals.
As of June 30, 2025, Regan Capital managed funds of $2.7 billion.
The company specializes in mortgage-backed securities (MBS), US Treasuries, asset-backed securities (ABS), whole loans, as well as in areas such as structuring and securitization, hedging and portfolio management.
In his recent post on LinkedIn, Weinand analyzed the trajectory of the US Treasury yield curve after the Federal Reserve began cutting interest rates.
As he noted:
The short-term side of the curve (front-end) has declined by approximately 0.50 percentage points.
The middle part of the curve (belly) has increased by approximately 0.50 percentage points.
The long-run part of the curve (backend) has been strengthened even further, by 0.80–0.90 percentage points.
Based on these changes, he expressed concern about whether it is advantageous to invest in long-dated bonds at a time when upcoming interest rate cuts may boost inflation and limit demand for this type of securities. His analysis reflects a broader skepticism that is forming in the market about the strategy of holding long-dated securities, especially in an environment of increased uncertainty about future interest rate movements and inflation.
Certified Technical Analyst (MSTA) and financial/sports writer with expertise in capital markets, trading systems and trading strategies.
Graduate of the Department of Statistics of the London School of Economics and Finance of ALBA Business School.
