PMV Capital analyst Dan Snover notes that Bessent is using the Treasury's $950 billion in cash in its General Account to potentially buy long-term debt.

Successful diversification lowers risk without sacrificing returns. To capture that effect, portfolios need independent sources of return that complement each other across different market conditions. Most portfolios rely on equity exposures that participate in major declines, bonds that don’t offset equity risk, and alternatives that tend to move with equities. Meaningfully different results require meaningfully different design. At PMV, we combine return sources intentionally selected to capture the benefits of diversification across all market environments.