Corporate bonds have rarely been more popular, but their risk - as measured by duration - has...


Corporate bonds have rarely been more popular, but their risk - as measured by duration - has never been higher as firms take advantage of low borrowing rates to issue plenty of longer-term debt. High duration makes a bond's value more sensitive to rising interest rates, meaning just a small move higher could wipe out gains from a year or more's coupon payments.
From other sites
Comments (4)
  • chopchop0
    , contributor
    Comments (5162) | Send Message
     
    For most top-notch best of breed corporations, it's a no-brainer right now. Buy the stock, not the bond
    12 Jul 2012, 03:14 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (11174) | Send Message
     
    Buy the bonds of the financials and the equity of the consumer staples.
    12 Jul 2012, 03:44 PM Reply Like
  • youngman442002
    , contributor
    Comments (5123) | Send Message
     
    but it is the rush for returns...and the are rushing...if you promised an 8% annual return..you have to find it....it WILL end bad....but that is what a pension fund has to do..or a hedgie...or a mutual fund...go for the gold..or lose your job
    12 Jul 2012, 04:03 PM Reply Like
  • redfish1127
    , contributor
    Comments (8) | Send Message
     
    According to Vanguard VCSH has a duration of 2.8 years and a risk potential of 1 out of 5. YTD yield 3.26%.
    13 Jul 2012, 07:58 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs