This strategist correctly recommended shorting Big Tech debt last year. Now he says the yields make it attractive.

A strategist who recommended shorting Big Tech debt last year now sees the yields on those same bonds as attractive, according to a report. The shift hinges on valuation rather than a change in view on the companies themselves: yields in the 6% to 8% range on tech bonds offer more competition against stocks than they did previously.

The point is relevant beyond the bond market. When corporate debt yields rise into that range, fixed-income investors effectively have a higher bar for what equities must deliver to justify holding them. High-grade tech bonds, long treated as a low-yield corner of the credit market, now sit closer to the return profile investors might otherwise seek in stocks — a shift in relative value that can influence allocation decisions across asset classes.

For observers, the key variables are where those yields settle and whether they hold. A durable move toward 6% to 8% would keep bonds a credible alternative to equities; a retreat would weaken the case. Credit spreads, issuance trends and rate expectations are the metrics to watch as the picture develops.