Enhancements
2018 STRIPS and Long Gov't Bond
STRIPS and Long Gov't Bond Durations Have Compressed
While STRIPS can improve capital efficiency in low-return environments, in 2018, we did not believe the yield expectations justified the change. In addition, STRIPS’ forecasted accumulation impact would have been muted, as it was intended for younger, lower-balance savers.
- US Long Gov't Bond Duration
- US Treasury STRIPS Duration
Index Duration (Years)