Particularly bullish on the $170 trillion fixed income market. Treasuries have already shown that institutions are willing to hold traditional assets on-chain. Credit is the natural next step, especially as more professionally managed strategies become available in tokenized form. The opportunity is much bigger than any single product. It is about bringing the depth of global fixed-income markets onto new financial rails.
It was great to be back in New York recently, catching up with partners and spending time with the BNY team. Our relationship with @BNYglobal began a year ago, when they came on board as investment manager and primary custodian for the TBILL Fund. Since then, we have continued to build together, most recently tokenizing the BNY Mellon Global Short-Dated High Yield Bond Fund (HYBOND Token). @nathanpaitchel and I were pleased to be invited by the BNY team to join them for a round of golf along with their close partners, which was a welcome change of pace from our brainstorming sessions at BNY's headquarters. Thank you to Doni Shamsuddin, Clarence Chan, Stephen Gill, Meena Ponraj, Christina Vu, Bushra Mannan, Maximilian D., and the wider BNY team for the warm hospitality and continued partnership!
@OpenEden_X Is High Yield Bonds really high risk too? It depends on which High Yield Bond Fund. There are wide spectrum of performance in this space. Let’s look at the most common metrics for evaluating risk or volatilty - standard deviation of historical returns. Below are 3year annualised standard deviation of each product BNY Global Short-Dated HY Bond Fund : 2.4% IEI (3-7y Treasury ETF) : 4.0% IEF (7-10y Treasury ETF) : 6.6% The BNY HY Bond fund has 40-70% lower volatility but more than double the returns. Will share more deep dive into the BNY HY Bond Fund that @OpenEden_X has tokenised. Dyor
