Rising bond yields may trigger structured product shake-ups

SRP talked to James Chu ( pictured ), founding director of Tricio Investment Advisors to discuss the implications of rising US bond yields on structured products amid speculation that the US 10-year treasury yield may eventually reach a range of two to three percent. According to Chu, there are several factors that have prevented the yield rate from reaching the expected spread including a stagnant uncertainty due to the Covid-19 pandemic, the Federal Reserve’s unwillingness to boost