Julian Robertson Bets the Farm on Inflation — Seeking Alpha
Posted by: Daniel / Category: EconomyWhile this is not a new position for Robertson, his constant confidence behind the play has inspired us to look at it more closely. Today, we are going to highlight Julian Robertson’s steepener swap play. In layman’s terms, he is betting on inflation. Taken from eFinancialNews, “Steepeners are a type of interest rate swap, where one party agrees to pay the other a fixed rate in exchange for a floating rate, which is derived from the difference between long and short term rates. Many of these products also use high leverage, where the difference between the two rates is multiplied by up to 50 times to produce a higher return.”
He thinks rates could hit 7% easily and could go as high as 18%.
via Julian Robertson Bets the Farm on Inflation — Seeking Alpha.
Tags: inflation, interest rates, julian robertson, leverage
