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This week’s new 52-week highs… (Dec 12-18)This summary was created by AI, based on 4 opinions in the last 12 months.
The BMO Long Federal Bond Index (ZFL-T) is a highly volatile and risky investment, with experts cautioning against the current state of long bonds. They note that rate cuts are not occurring as quickly as anticipated and that the product performs better in a crash market. However, it is still seen as a good way to add duration-risk exposure and is one of the few asset classes that would perform well in a recession.
Long bonds have not been performing as well. Rate cuts not occurring as quickly as anticipated. Would recommend small position. Strong markets not good for product, but if market crashes - is a good product.
The largest ETF giving you exposure to purely CAD long bonds. Same theme as the TLT.
Canadian federals, a growing category. Good way to add in alongside cash and take on some duration-risk exposure. Barbells in a bit of rate risk in a capital-efficient way. One of the few asset classes in a portfolio that would zig should the market zag into a recession.
Bonds offer a nice diversification against a recession or slowdown in economic growth. ZFL pays a 3.6% yield, so it offers investors a solid yield while central banks determine their final monetary policy decisions. Largely, we think that we are near the end of the hiking cycle, inflation is coming down, it is near the target rate of 2%, and while the consumer is resilient, a tightened credit market can lead to negative outcomes occurring eventually, and bonds are essentially insurance against this. It's possible that the BoC increases rates two or more times by the end of the year, however, if inflation slows faster than expected, these goal posts may change and thus bond prices can be buoyed. We would be comfortable holding bonds here as insurance, however, we would prefer to wait until Canada's next inflation reading as well as the BoC decision to add to the position.
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BMO Long Federal Bond Index is a Canadian stock, trading under the symbol ZFL-T on the Toronto Stock Exchange (ZFL-CT). It is usually referred to as TSX:ZFL or ZFL-T
In the last year, 2 stock analysts published opinions about ZFL-T. 2 analysts recommended to BUY the stock. 0 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for BMO Long Federal Bond Index.
BMO Long Federal Bond Index was recommended as a Top Pick by on . Read the latest stock experts ratings for BMO Long Federal Bond Index.
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
2 stock analysts on Stockchase covered BMO Long Federal Bond Index In the last year. It is a trending stock that is worth watching.
On 2024-12-06, BMO Long Federal Bond Index (ZFL-T) stock closed at a price of $13.605.
When you buy any bond fund or ETF, you have persistent rate risk. Very different from buying a bond that matures. If you want to take advantage of falling yields, you have to own long-term bonds that don't mature for a long, long time. So if interest rates fall, you get the advantage of that.
For a bet on falling interest rates, long bonds are the way to do it. ZFL contains long-term federal government bonds in Canada. In the US, use TLT. Best bang for your buck, but highly volatile and highly risky. Long bonds right now are facing a tremendous wall of supply, and he's not sure they're going to fall that much in price. He's quite cautious on long bonds right now.