Every private banker and real estate broker I meet assures me that a soft landing is certain and Dubai property’s meteoric ascent will continue, as if we did not live through two 60% drawdowns in 2009 and 2014.

My macro crystal ball told me different, so I was uber-bearish on US Treasury bonds when the yield on the bellwether 10-year note crossed 3.5%. I even wrote successive posts about the coming bond bloodbath. Sadly, this bloodbath is now happening and the yield on the 10-year US Treasury note is 4.18%. It is headed higher. A lot higher.

I am horrified at the sheer number of leveraged HNW lambs who have been fleeced/slaughtered in the bond market by fiduciary Bankerjis who were supposedly sworn to protect their assets.

One GCC multi-millionaire with a 100 million+ bond portfolio I met for lunch asked me my opinion on the Pakistan 2049 Eurobond which his private banker had seen fit to buy for him because the bank’s leveraged loan is obscenely profitable for such a long duration asset. I do not even know if Pakistan will avoid default in the next 12 months, let alone exist in the next 26 years. The same gentlemen also had a $3 million mutual fund position in the retail class, just so that the bankers could get retrocession as the institutional class shares leave no room for greasy bankster fingers in the cookie jar. Shame!