Bessent's Debt Recycling Scheme: A 10.3% Dividend to Profit Amid Falling Treasury Yields

Treasury Secretary Scott Bessent's focus on the "long" end of the yield curve has led to lower 10-year Treasury rates, with the current rate around 4%. To cash in on this, investors can purchase closed-end funds (CEFs) yielding up to 10.3%, such as the PIMCO Corporate & Income Opportunity Fund (PTY), which has a 16.8% premium to NAV. Bessent's "debt recycling scheme" involves using short-term issuances to fund long-term debt, reducing supply and boosting prices. Midterm elections and a focus on lowering mortgage rates will likely keep Treasury yields low, benefiting corporate bonds and CEFs.