Bonds

The deal priced at 335 over, beating expectations for the transaction to price at 350 over, due to bond market volatility.

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The US 10-year term premium — or the extra return investors demand to own longer-term debt instead of a series of shorter ones — has climbed to near 1%, a level last seen in 2014.

The alternative-asset manager also sees the risk of a "structurally" weaker dollar as President Donald Trump seeks to reshape global trade. The dollar is about 15% overvalued.

The selling comes after overseas investors made record purchases of US corporate debt in 2024. Official data shows the demand slowing in February.

Fixed-income trading was hit in the first two weeks of April and only returned to a "healthy" performance after that, the CFO said.

The move comes as bonds Saks sold to finance its $2.7 billion acquisition last year have lost more than a third of their value since they were issued in December.

It's bringing back memories of the basis-trade unwinds at the onset of the pandemic — when widespread deleveraging sparked blowups of the popular hedge fund strategy that sent bonds tumbling.

Bessent had repeatedly criticized then-Treasury Secretary Janet Yellen for boosting the share of bills in US debt.

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