MS Pro Briefing | 20th June 2025
Box Spreads, Hedging Premium, Private Equity returns, and more..
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Actionable Insights
You can make a slightly higher pre-tax yield than equivalent Treasury bills at a similar risk profile using a box spread. Depending on your tax situation, it can leave you with a meaningfully better after-tax return.
Most investors overlook the hedging premium when evaluating international bonds. The 10-year Japanese bond yield is under 2% in the local currency, but after adjusting for currency hedging, the total yield jumps above 5%.
Apple released a paper that argued that Large Language Models only have an illusion of thinking and no actual reasoning.
Manager selection is vital in realizing the “market-beating” returns touted by alternative asset classes like Private Equity.