LTPZ: From Perfect Storm To Opportunity

Stuart Allsopp7.04K FollowersFollow5ShareSavePlay(6min)Comment(1)SummaryPIMCO 15+ Year U.S. TIPS ETF (LTPZ) offers a 2.7% real yield after its recent selloff, creating a compelling entry for bond investors willing to accept volatility.LTPZ’s underperformance despite rising oil prices stems from contained long-term inflation expectations, higher rate forecasts, and a rising term premium.Current real yields are unsustainably high an the Fed will likely need to intervene to prevent a debt spiral.A return to negative real yields could drive LTPZ to double over 2-3 years. design master/iStock via Getty Images The PIMCO 15+ Year U.S. TIPS Index Exchange-Traded Fund (LTPZ) has suffered collateral damage from the Iran war, falling back to its lowest level since mid-2025. In doing so its real expected yield has risenThis article was written byStuart Allsopp7.04K FollowersFollowI am a full-time investor and owner of Icon Economics - a macro research company focussed on providing contrarian investment ideas across FX, Equities, and Fixed Income based on Austrian economic theory. Formerly Head of Financial Markets at Fitch Solutions, I have 15 years of experience investing and analysing Asian and Global markets.Analyst’s Disclosure: I/we have a beneficial long position in the shares of TLT, LTPZ either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.