SPDR Barclays Capital Short Term Corporate Bond ETF(SCPB)- NYSEARCA
  • Aug. 12, 2013, 9:35 AM
    • Mutual and ETFs (LQD) focused on investment grade corporate debt reported $639M of net inflows last week, the largest gain in over 2 months, according to BAML. In the 10 weeks previous, investors had pulled a net $8.3B out of these fixed-income funds. High yield funds (HYG, JNK) attracted $566M last week.
    • The move comes has the IG yield spread to Treasurys has slipped 19 bps since hitting a 9-month high of 172 in late June.
    • "There are signs of life," says one fund manager. "People are expecting tapering and are getting out of Treasurys" and into higher yielding assets.
    • Other high-yield ETFs: PHB, HYLD, HYS, SJB, UJB, SJNK, ANGL, BSJG, BSJH, BSJI, QLTC, XOVR.
    | Aug. 12, 2013, 9:35 AM
  • Jul. 9, 2013, 9:23 AM

    There are more losses ahead for corporate paper (LQD), says JPMorgan's Jan Loeys, noting corporates replaced Treasurys as the favored way to get exposure to duration. "Potential buyers don't have the same capacity to absorb credit risk." Credit spreads didn't protect against higher rates during the recent bond bust - corporates lost 3.4% since May 22 vs. a 2.6% decline in Treasurys, according to Bloomberg's Lisa Abramowicz.

    | Jul. 9, 2013, 9:23 AM
  • Jul. 1, 2013, 12:14 PM

    The exodus of money in June from emerging markets and (most) fixed income ETFs has been well documented, but did any funds garner new money? As a percentage of assets, 2 stand out - the iShares MSCI Germany ETF (EWG) and a leveraged-long Russell 2000 ETF (UWM). Also making the list of inflows are a number of short-term fixed income funds - SHY, SCPB, MINT - as investors shed duration risk.

    | Jul. 1, 2013, 12:14 PM
  • Jun. 26, 2013, 2:48 PM

    Attempting to answer the question of what the world would look like if the 10-year Treasury yield climbed to 4% while short rates remained about zero, Marty Fridson says spreads on high yield (HYG, JNK) and investment-grade (LQD) corporates would widen to levels seen at the time of the Lehman failure. He's quick to point out this is a stagflation scenario, but if the yields rose because of a booming economy, it would be a different result for corporate paper.

    | Jun. 26, 2013, 2:48 PM
  • Jun. 20, 2013, 1:27 PM

    Turning bearish on investment grade credit (LQD), BofA strategists recommend the purchase of CDS pegged to the paper. Redemptions from mutual funds and ETFs in response to lower prices is likely to accelerate the drop. "We think that in the short-term, investment grade credit spreads are biased wider."

    | Jun. 20, 2013, 1:27 PM
  • Jun. 11, 2013, 9:59 AM
    Apple's iBonds are showing up in the holdings of numerous bond ETFs, including total U.S. bond market ETFs like AGG and corporate bond ETFs like LAG - both tied to indexes. The paper is also held by corporate bond ETFs LQD, SCHZ, ITR, LWC, and SCPB. Notably not owing any of the debt are the Pimco IG Corporate Bond Index (CORP) and Bill Gross' Total Return ETF (BOND).
    | Jun. 11, 2013, 9:59 AM
  • Jun. 3, 2013, 8:47 AM

    Did Apple's (AAPLmammoth $17B bond sale mark the top for bonds? Ten-year Treasury yields bottomed for the year at about 1.62% right at the time of the offering and have gone vertical since (currently at 2.16%). A back-of-the-envelope calculation finds the company pocketing $724M in savings over the life of the paper by borrowing at the end of April vs. the end of May. TLT -7.6%, LQD -3.7% during May.

    | Jun. 3, 2013, 8:47 AM | 3 Comments
  • May 30, 2013, 3:31 PM

    Fidelity's plans for actively-managed ETFs takes shape, the firm registering the Fidelity Mortgage Securities ETF and the Fidelity Corporate Bond ETF. The mortgage product will invest in investment grade MBS and have a similar profile to the iShares MBS Bond Fund (MBB). The corporate fund will have similar interest rate risk to that of the iShares Credit Bond Fund (CFT). Getting with the times: They'll be the first new Fidelity ETFs in a decade.

    | May 30, 2013, 3:31 PM
  • May 20, 2013, 1:10 PM

    With borrowers racing to market before demand dries up or interest rates rise, corporate bond (LQD) sales this month are on pace for their busiest May ever, according to Bloomberg. The previous record of $162.6B was hit in 2008. Warnings from Buffett and Gross about the likelihood of higher rates are ignored as "investors have cash to spend yet fewer alternatives to buy," writes a Morgan Stanley team.

    | May 20, 2013, 1:10 PM
  • May 10, 2013, 5:57 AM

    Don't panic, Moody's says, there's "no strong evidence that recent [corporate debt] issuance levels presage a damaging correction." The notion that a bubble is building in the corporate bond market isn't reflected in credit spreads which, for both investment grade (LQD) and high yield (HYG, JNK), are closer to long-run averages than they are to alarmingly tight. Furthermore, the ratings agency says a surge in issuance reflects the "disintermediation of the banking sector" and notes that the proportion of total corporate liabilities comprised of debt securities hasn't significantly increased over the past two years." We can all rest easy now. (previous)

    | May 10, 2013, 5:57 AM | 2 Comments
  • May 8, 2013, 11:20 AM
    Coupons continue to shrink on fixed-rate U.S. corporate bonds reports Fitch, with the average falling to 5.6% in March, down from 5.7% at year end, and 6.1% a year ago. Investment-grade paper (LQD) came in at 3%, speculative (HYG, JNK) at 6.3%. New issuance in Q1 was $259.5B, putting 2013 on pace with 2012's record activity. Rating activity remains subdued, with downgrades affecting just 1% of issuance, upgrades 1.8%.
    | May 8, 2013, 11:20 AM
  • Apr. 12, 2013, 12:28 PM

    Fixed-income may not be being given away as it was in 2010, but there's still value, says Jeff Gundlach, scoffing at talk of a bond bubble. "Raise your hand" if you own Treasurys for yourself or a client, he asked a room full of advisors (none went up). Bonds are not "over-owned" in the U.S., he says, showing cash and fixed income make up  a higher percentage of household financial assets in other countries.

    | Apr. 12, 2013, 12:28 PM | 5 Comments
  • Feb. 27, 2013, 11:10 AM
    Leading off his latest outlook with Alan Greenspan's "irrational exuberance" line, Bill Gross (BOND) ponders its application to credit markets (LQD, HYG, JNK) today. Conclusion: Not yet. Labeling credit irrationality a 6 on a scale of 1-10, Gross suggests not selling, but instead lowering expectations.
    | Feb. 27, 2013, 11:10 AM | 1 Comment
  • Feb. 13, 2013, 9:15 AM
    Corporate debt has duration risk as well, and worries over higher rates have BlackRock planning two actively-managed ETFs focused on short-term paper. Average duration of IG debt stands at a near-record 6.8 years, according to BAML. The long-end has been the place to be, but shorter-duration is "gaining traction." LQD -1.4% YTD.
    | Feb. 13, 2013, 9:15 AM
  • Feb. 5, 2013, 2:49 PM

    Money for nothing. IBM plans a sale of $2B in floating-rate debt, with the 2-year paper maybe priced at Libor minus 2 basis points. The 5-year notes look to yield 47 bps more than 5-year Treasurys. Coca-Cola and P&G both issued debt paying less than the benchmark rate last year.

    | Feb. 5, 2013, 2:49 PM | 1 Comment
  • Jan. 31, 2013, 4:37 PM
    Are funds flowing out of junk bonds? The noticeable turn lower in HYG and JNK in the past couple of sessions has been accompanied by surging volume, notes John Spence. Both of the ETFs have returned to about flat YTD. The IG corporate bond ETF (LQD) is now red. Dan Fuss describes today's high yield values as "ridiculous."
    | Jan. 31, 2013, 4:37 PM
SCPB Description
The SPDR® Barclays Capital Short Term Corporate Bond ETF seeks to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of an index that tracks the short term US corporate bond market.
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Country: United States
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