Hedging

In the aftermath of a looming banking crisis and the resulting market turbulence, we are observing a tectonic shift in the economic landscape. The resilience of the economy, as evidenced by the recovery of stock and bond yields and evolving inter-asset correlations, is reshaping the efficacy of bonds as a hedging tool. The S&P 500 Index has gained around 14% since the March trough, and ten-year Treasury yields have risen by approximately 0.50%. It seems that as the economic climate improves, so too does the faith investors place in a…