Yields ranging from 6% to 8% on tech bonds provide more competition against stocks than before.
This strategist correctly recommended shorting Big Tech debt last year. Now he says the yields make it attractive.
In short
Fixed-income instruments issued by major technology firms are drawing fresh investor interest following substantial increases in their payouts. With tech bond yields now ranging between 6% and 8%, the debt offers far stronger competition against equities than it did in previous cycles. A strategist who successfully bet against this market segment last year has officially reversed stance, citing these attractive yield levels.
Key points
- Rising tech debt yields have prompted a well-timed strategist to turn positive on the sec…: Rising tech debt yields have prompted a well-timed strategist to turn positive on the sector.
- Yield rates ranging from 6% to 8% make technology bonds a competitive alternative to equi…: Yield rates ranging from 6% to 8% make technology bonds a competitive alternative to equities.
- Significant yield increases have reversed the negative investment outlook previously held…: Significant yield increases have reversed the negative investment outlook previously held for Big Tech debt.