Press Enter to search · ESC to close

Macro US Stocks

BofA’s Subramanian: Bonds Now Genuinely Compete With US Stocks

Bank of America’s Savita Subramanian said US Treasuries are offering genuine competition to equities for the first time in decades, with the 10-year note’s risk-reward above 5%. Her team’s own valuation framework suggests the S&P 500 may not match that return over the next 10 years. Subramanian, BofA’s head of US equity and quantitative strategy, also warned that elevated investor sentiment leaves stocks more at risk of disappointment than of further gains.

Original source

AI take

The notable shift here is not the yield level itself but that a major sell-side equity strategist is publicly conceding the relative-value case for bonds — a framing that has been rare for most of the post-2009 era. It matters most for allocators weighing duration against equity risk, and for the sentiment argument: if positioning is already stretched, the marginal buyer of stocks is harder to find. Whether that sentiment reading translates into actual de-risking, or remains a valuation talking point, is the open question.

Generated by AI for reference only.

Share

Related News

TREE NEWS share card
Long-press image above → Save to Photos / Share
Pitch us Feedback