Stockchase Opinions

Hank Cunningham iShares Adv. Short Duration High ETF CSD-T DON'T BUY Jun 15, 2011

Adv. Short Duration High ETF. This is a junk bond ETF so make sure you don’t have everything in this. Short duration is less than 1 year. There are not enough names and they really are junk. Very high risk.
$20.070

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Reality is that spreads are very wide so you are getting paid a lot of money. With shorter duration of their bonds, you wont suffer too much if bonds interest rates go up.
COMMENT

He likes high-yield bonds. This is actually a good time for high yields as the spreads are wide. High-yield bonds are very equity like. Doesn’t think it is necessary to go to a short duration. Doesn’t think the duration on high-yield bonds is as important as the spreads are. He would go with the iShares US High Yield Bond Index (XHY-T).