Joey Mack
Vang.Cdn Short-Term Corp. Bond
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COMMENT
Jun 10, 2014
If interest rates move up, how sensitive are short-term corporates as opposed to governments or other vehicles?Where do you expect those rates to go in the next 2 years?This is a great strategy as it is a great way to take your money and park it in a safe place in the bond market for the next couple of years. The challenge is that the short-term and the market only yield 1.5%, so you are getting less than what the rest of the market is going to give you. However, that is countered by the fact that the duration of this fund is probably around 2-2.5 years. You would be better buying this and staying in cash.
(Top Pick Nov 8/12, Up 2.64%) He doesn’t like any bonds but if you are going to do corporate bonds, then this is the way to do this. Stay on the short end of the yield curve.
Tracks investment grade corporates in the US. Expensive right now. The spread is so narrow, it's hard to get excited. The bond market is having a hard time finding value. Strongly avoid right now.
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If interest rates move up, how sensitive are short-term corporates as opposed to governments or other vehicles? Where do you expect those rates to go in the next 2 years? This is a great strategy as it is a great way to take your money and park it in a safe place in the bond market for the next couple of years. The challenge is that the short-term and the market only yield 1.5%, so you are getting less than what the rest of the market is going to give you. However, that is countered by the fact that the duration of this fund is probably around 2-2.5 years. You would be better buying this and staying in cash.