Lead idea
Natural buyers of long Treasuries have shifted to private credit
The bearish case made for long-dated Treasuries is that natural buyers like insurance companies have shifted allocations to higher-yielding private credit, reducing demand. David Busch (Chief Investment Officer of Trajan Wealth) made the case on Monetary Matters with Jack Farley’s “Why The 30-Year Treasury Lost Its Biggest Buyers”, aired 19 September 2026. The mechanism described is that insurance companies, seeking higher yields, have turned down duration and convexity risk but turned up credit and liquidity risk by investing in floating-rate private credit funds.
David Busch · MONETARY MATTERS WITH JACK FARLEY · “Why The 30-Year Treasury Lost Its Biggest Buyers | David Busch on Why High Yields Are Attractive Right Now” · 19 SEP