This section of the website provides information on funds which are registered for marketing to private or professional investors for the selected country.

The funds presented in this section of the website may not be available to persons subject to another jurisdiction by virtue of their nationality, their place of residence, or any other reason. See the disclaimer (read our Terms of Use).

The user is solely responsible for correctly indicating his/her country and categorization before accessing sections of this website with information relating to funds, in accordance with the Terms of Use and the Privacy Policy.

The website is provided for information purposes only. No part of this website constitutes a solicitation to invest in funds managed by ECP or in any other investment product. See the Terms of Use.

Prospective investors should be aware that past performance is no indication of future returns.
Prospective investors should refer to the prospectus and Key Investor Information Document (KIID) in particular to the sections dedicated to specific risks of the relevant investment strategies before taking any action and should generally seek professional and independent advice before making an investment decision. See the Terms of Use.

European Capital Partners (Luxembourg) S.A. accepts no liability for any loss or damage resulting from the use of this website, in accordance with the Terms of Use.

I hereby declare that:

I am aware of the rules applicable to me and I wish to access this part of the website containing fund information and data.
I am familiar with and accept in full this disclaimer as well as the Terms of Use and the Privacy Policy.

The duration trade

Aug 07, 2023

Bill Ackman from Pershing Square announced to short the 30-Year US Treasury in size as he expects yields to hit 5.5% as structural changes will lead to higher levels of long-term inflation. These would include de-globalization, higher defence costs, the energy transition, growing entitlements, and the greater bargaining power of workers. He thinks it would be hard for the market to cope with the increased issuance “without materially higher rates”.

Warren Buffett bought $10 billion in short term U.S. Treasuries last Monday. “We bought $10 billion in Treasuries. And the only question for next Monday is whether we will buy $10 billion in 3-month or 6-month” T-bills, Buffett told.

Looking at the current yield curve, both trades – long short duration and short long duration – make sense. We own short duration bonds in the portfolios for our clients.

Return to overview

Please select your investor profile

Please select your country of residence

Warning

The duration trade

Aug 07, 2023