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Tweaking the fair value models

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We use a macro approach for valuing 10-year sovereign securities. The formulations were challenged by the pandemic, the inflation spike of 2021-22, and the phaseout of Libor and related contracts. We tweaked the models to use forward-looking data. The U.S. and U.K. are relatively undervalued, while Germany and Japan are relatively overvalued.

Ned Davis Research | Fixed Income | Focus | Bi-Weekly

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