GMO Says Treasuries Have Lost Their Appeal in Zero-Rate World
- Investors should consider riskier debt, GMO’s Ben Inker says
- Lower rates make taking more risk unavoidable, he says
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Jeremy Grantham’s GMO says it’s time to give up on U.S. Treasuries as a zero-rate world will force investors to consider high-yield corporate bonds and emerging-market debt.
Government bonds yielding next to nothing have so lost their appeal that investors have little choice but to look elsewhere, GMO’s Ben Inker said in a quarterly letter to investors Monday. Among his suggestions is to consider cutting an equity allocation to 50% from 60% and adding 10% to riskier debt.