Moscow — Deutsche Asset Management’s Christian Hille is tuning out a chorus of warnings that Treasuries are in a bear market. In fact, he’s staked most of his $140 billion portfolio on a bet that the rise in yields has pretty much topped out, clearing the path for gains in risk assets. "We saw the sell-off of a couple of weeks ago as a bull market correction and not the start of a bear market," said Hille, who heads Deutsche Asset’s global multi-asset division. "We see that 10-year nominal and real yields have risen fast, but we don’t see a high probability that we’ll substantially exceed 3% in the short term." Hille has been loading up on risk assets in the belief that core US inflation is likely to stay contained after early-year seasonal effects wear off, while a debt overhang in the US will limit the number of interest rate hikes the Federal Reserve can deliver. His view is at odds with big-name investors like Paul Tudor Jones and Michael Hasenstab, who have warned the rout in T...
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