MQG overvalued in the current market, page-12

I think you are correct.

10 year has come down expecting the fed to control the inflation by that time. Heaven help us if we can't control the inflation in that duration. In fact, for the first time, some bond traders are talking about taking more duration risk. This is something which was absolutely not done in the past two years. All of them were hiding in the short end of the curve. The question is whether you can control inflation with neutral rates(2.5-3%). My basis is we cannot. Also, the backup theory is if they can control the inflation with those rates, we have significantly overestimated the strength of the economy.

The second point is that MQG gets less benefit from the rising rate environment than a traditional bank. Rising yields are partly the reason, I am holding on to a huge parcel of traditional financial companies. MQG is not a traditional lender. What served well for MQG in the previous cycles, being an investment banker than a traditional banker will handicap them in this cycle. Their investment income would come down in the short to medium term.

Very interesting space to watch.