Opinions
Richard Croft
BMO Long Corporate Bond ETF
ZLC-T
COMMENT
Dec 09, 2016
$17.800
Stock price when the opinion was issued
E.T.F.'s
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His theme today is Defensive. This one is really for his bond holdings. Short-term bond holdings are not yielding so this puts him out on the longer end of the yield curve and also gives him some credit exposure. He won't hold this one for a very long time, probably by the end of this year or maybe early 2013, because of the risk of rising interest rates.
E.T.F.'s
DON'T BUY
If interest rates goes back, then you can get really hurt. If you want long-term, you can have some short duration bonds. ZST is a short term bond. He wouldn't buy it right now.
E.T.F.'s
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Corporate debt is not assessable to most retail investors. How can I invest? There are others, but this is as good as any. It is hard to get good corporate bonds, and an ETF is a good way to play it. If you are going to be in the bond market, this is where you should be. The yields are a little better. Bear in mind that corporates are not going to be immune to higher interest rates and the impact it is going to have.