Bond market sell-off is 'not a crisis, but an eye-opener': Rick Rieder | Sozzi Unleashed

• The bond market sell-off is 'not a crisis, but an eye-opener,' with 10-year Treasury yields above 5% for the first time since 2007.
• Rieder is shortening interest rate exposure, rotating out of interest-rate-sensitive assets like mortgages into credit, and maintaining a moderate equity position.
• He believes equities are a 'B-minus' but still expects 10-12% returns over the next 12 months, citing historical data that 5% 10-year yields have led to 9.5% average forward returns.
• Concerns include rollover financing risk in commercial and residential real estate, and the significant cost of higher rates to the US government, which creates a bigger debt problem.
• He suggests the Fed will likely hike rates one more time but should focus on clearer communication regarding its reaction function rather than forward guidance.

Rick Rieder views the global bond sell-off as an 'eye-opener' rather than a crisis, noting that while the market is tricky, it presents opportunities. He is shortening interest rate exposure, rotating out of mortgages into credit, and maintaining a moderate equity position, expecting low double-digit returns from equities despite rising yields. He highlights concerns about rollover financing risk in real estate and the cost of rising rates for the US government.