2026-09-11XQuote

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An excerpt from Rational Dissent Episode 007 (full episode below): Alex Malitas examines why investors might hesitate to accept fixed Treasury yields around 4.75% to 4.80% by evaluating three competing asset classes. Stocks offer comparable starting yields but include the potential for future earnings growth, while cash allocations provide solid returns while preserving liquidity. Additionally, direct lending offers a significantly higher 9.50% yield for those willing to accept more risk, raising the question of what will eventually drive genuine buyer demand for Treasuries again.

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Rational Dissent Episode 007. Are Yields Good Enough To Compete? A yield is only as good as what you compare it to, right now, rates aren't promising enough for investors to want in. Available on YT, Apple, Spotify, Overcast, etc. --- Chapters 00:00 - Introduction 01:46 - Determining the "Right" Level for Interest Rates 05:46 - Price-Sensitive vs. Price-Insensitive Treasury Buyers 12:00 - Comparing Treasuries to Alternatives 16:43 - Term Premium and the Market's Demand for Higher Yields 20:57 - The 4-5-6 Rule and Unrealistic Investor Expectations 24:28 - Will Foreign Central Banks and Price-Insensitive Buyers Return? 28:25 - Lightning Round: Will Bonds Win, or Will Everything Else Lose? 32:24 - Outro and Conclusion
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