I had the pleasure of working for over a decade for the greatest bond investor of all time – Bill Gross. Recently, with another Bill — Ackman — publicly going short the bond market and then covering the short and advertising the exploit in a tweet, many market commentators crowned him the new Bond King. A few years ago, when the original Bill departed PIMCO, one Jeffrey Gundlach was crowned the Bond King, albeit briefly.
“My vote today for Bond King is not a person; it is a modest little risk-free Treasury security which we know as the Treasury 2-Year Note. No more Bond, James Bond. For now, it is Note, James Note (an inside joke of old-school fixed income traders). Let me explain why.”
The full note on this important topic can be downloaded at this link: LTA Thinking – The New Bond King Is…The 2-Year Treasury Note!