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What the front end of the curve is actually pricing

Market-implied paths are not forecasts. They are the cost of insurance, and the distinction matters.

A curve is a weighted average of outcomes plus a risk premium. Treating it as a central forecast produces confident, precise and frequently wrong commentary.

Separating expectation from premium

The premium is not observable, which is why reasonable people decompose the same curve differently. Say which decomposition you are using.

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Long-form analysis from the desk: market structure, capital allocation and the numbers companies would rather you skipped.

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