I don’t think extension risks is the main reason it’s down. I doubt those assumptions have changed much. It’s just rates higher leads to lower price.
The big issue with this product is if we would hit a crisis you won’t get big cap gains on QE again. Since then more people refinance. The benefit is you get higher yield. So if you wanted to bet on henta virus leading to lockdowns then you would prefer treasuries.
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I don’t think extension risks is the main reason it’s down. I doubt those assumptions have changed much. It’s just rates higher leads to lower price.
The big issue with this product is if we would hit a crisis you won’t get big cap gains on QE again. Since then more people refinance. The benefit is you get higher yield. So if you wanted to bet on henta virus leading to lockdowns then you would prefer treasuries.
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