What is risk parity? | FT Markets

"raise interest rates"- this didn't age well

not a single graph or chart? you should be ashamed.

anyone watching; go watch the investopedia one with the great Ray Dalio

How could you leverage a bond portfolio?

E.g. if I take out a loan APR 3%

And use that to buy a bond with the loan. Aren't I both long and short the same asset?

The fallacy of risk parity is in the aggregate everyone following the same strategy is inherently risk-prone for the system. More so when each of these participants assume they have lowered risk. The obvious example is 2008 financial crisis. Individual rationality aggregated is too often collective irrationality, where the effects justify and produce their cause.