New Study Reveals Best Strategy for Maximizing Returns on Debt
The article examines interest rates on U.S. Treasury benchmarks and other debt instruments from 1982 to 2004. By analyzing the volatility and correlations between these instruments, the study aims to understand how they affect forecasting performance. The findings show that shocks to debt instrument yields are generally high and positively correlated, suggesting that specializing in instruments with the highest returns is important when building a portfolio.