Caitlin Long: Bond vigilantes are reemerging amid renewed market attention

Caitlin Long: Bond vigilantes are reemerging amid renewed market attention
Bond vigilantes are back in finance

Caitlin Long, founder and CEO of Avanti Bank & Trust at Custodia Bank, highlighted the return of bond vigilantes in financial markets.

Long referenced a recent podcast discussion with Scott Melker on this topic and recalled the 1994 quote by James Carville about the intimidating power of the bond market. She emphasized that bond vigilantes, who are investors enforcing discipline on governments or markets through bond trading, are once again active.

Long has previously criticized government intervention in banking, stating that the Biden administration’s actions against Silvergate Bank were misguided. She has also commented on tensions between government institutions, noting that conflict between the U.S. Treasury and Federal Reserve extends beyond traditional monetary policy issues. Her recent remarks on bond vigilantes follow a series of statements addressing regulatory and policy challenges in the financial sector.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.