NEW YORK (Reuters) – Recent increases in U.S. Treasury yields are set to improve the attractiveness of investment strategies such as the 60/40 portfolio, said Ken Griffin, the billionaire founder of Citadel Securities, one of the world’s biggest market-making firms.
“The 60/40 portfolio is much better today than at any point in recent time,” he said, speaking at an investment conference in New York on Monday, and with reference to a common investment strategy which splits allocations between stocks and bonds on a 60%/40% basis to mitigate risk.
Yields on the 10-year benchmark government bonds topped 4% on Wednesday, hitting a 12-year high. “Right now, that’s a much more compelling value proposition than it was back then at 1% yield,” Griffin said.
(Reporting by Carolina Mandl and Davide Barbuscia in New York)
