Mike PhilbrickReturn Stacked Bonds & Merger Arbitrage ETFRSBA-CBOEBUYNov 27, 2025
Sometimes you reach for a bit of extra yield going with top-rated credit instruments, but the credit spreads are very tight today. Plus, credit is correlated to equity markets. When you have an equity market decline, often the credit exposure expands, making bonds go down a bit.
Look at this ETF if you're willing to consider USD exposure. Stacks the merger arbitrage risk premium (rather than the credit premium) on top of government bonds. Here, the merger arbitrage is not correlated to equity markets.
Sometimes you reach for a bit of extra yield going with top-rated credit instruments, but the credit spreads are very tight today. Plus, credit is correlated to equity markets. When you have an equity market decline, often the credit exposure expands, making bonds go down a bit.
Look at this ETF if you're willing to consider USD exposure. Stacks the merger arbitrage risk premium (rather than the credit premium) on top of government bonds. Here, the merger arbitrage is not correlated to equity markets.
Disclaimer: His firm manages this ETF.