Opinions
Larry Berman CFA, CMT, CTA
BMO Long Corporate Bond ETF
ZLC-T
COMMENT
Apr 02, 2020
ZLC-T & ZIC-T. You have a little bit of credit risk in corporate. When you want safety the best bet is government, not corporate as you get exposure to corporate earnings. Do you want it for the yield or for the protection? Don't sell either one at the moment.
$17.290
Stock price when the opinion was issued
E.T.F.'s
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TOP PICK
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
COMMENT
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.
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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