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SPDR Barclays Capital Short Term Corporate Bond ETF (SCPB)

  • Jan. 18, 2013, 2:35 PM
    Investment-grade bonds continue to get a underweight allocation at Barclays, which says the spread to Treasurys isn't enough to compensate for the lack of liquidity, particularly so in higher-quality credits. The bank remains overweight high-yield - which also suffers from lower liquidity, but with a more adequate spread to make up for it. Chart of TLT vs. LQD vs. HYG YTD.
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  • Jan. 8, 2013, 5:09 PM
    Gundlach: By at least one measure - comparing the Merrill Corporate Index to the Treasury Index - corporate paper is as overvalued as it's ever been in the history of the data (going back to 1985). Another relatively overvalued fixed-income class is emerging market debt (EMB). "I would not be putting any new money into that."
  • Jan. 4, 2013, 12:51 PM
    Investors want yield and treasurers/underwriters are happy to give it to them. A full 41% of investment grade corporate bond issuance was BBB (the lowest IG rating) in 2012, the highest proportion going back to at least 1998. Just 19% of issuance rated AA or AAA - only 1998's 17% was lower in the last 15 years.
  • Dec. 7, 2012, 12:57 PM
    More from Hudachek's Overlooked ETFs: Investment-grade and high-yield debt investors may have interest in Guggenheim's Suite of products offering a range of maturities - from very short-term all the way out to 2020. The shortest term IG fund is BSCC, junk is BSJC. To go longer maturity, just swap the last "C'' in the fund symbol for "D," and so on, all the way out to "K."
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  • Dec. 7, 2012, 7:39 AM
    Duration risk in the investment grade bond market (LQD) is leading fund managers to reduce exposure. The average yield on IG bonds has fallen to 2.66% and bond math says it takes very little backup in yields from this point to wipe out a year (or years) of coupon payments. Corporate bonds often yield less than the equity of the same company - a rare situation, says Matt Eagan. "We think you have a better chance of preserving principal on the equity side." This from a bond man!
  • Nov. 28, 2012, 10:06 AM
    If a bond issued at par goes to 116, that's not a bubble, says original (bond) gangster Dan Fuss. "If it goes to 250, that's a bubble, and that doesn't tend to happen with bonds." The strong performance of fixed income reflects a strong market, he says, but one with room yet to grow.
  • Nov. 27, 2012, 3:26 PM
    With "liability driven investment" strategies - in which pensions attempt to match asset and liability duration - tilting managers away from stocks and to fixed income, corporate pension funds are expected to continue to be major buyers of corporate debt issuance. Robert Hunkeler with International Paper isn't playing, noting buying long-dated debt now just locks in yields too low to fund his plan.
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  • Nov. 27, 2012, 3:17 AM
    Amazon (AMZN) raised $3B in its bond offering, which comprised notes maturing in three, five and 10-years. The company will use the money to help it buy its Seattle headquarters in a $1.16B deal, as well as for general corporate purposes. Moody's rated the debt - the first that Amazon issued since 1999 - at Baa1, although S&P rated it four levels higher at AA-.
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  • Nov. 19, 2012, 1:40 PM
    "We are in the midst of a major deleveraging in the entire developed world," says BlackRockCIO Rick Rieder, with a rare kind word for those piling into "safe" assets like Treasurys and high-grade corporate debt. He points to an unprecedented aging of the population as keeping a lid on growth. Instead of losses, just maybe a backup in rates will bring forth another wave of cash now sitting on the sidelines.
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  • Nov. 12, 2012, 12:40 PM
    David Kotok turns "extraordinarily bullish," saying markets are ignoring easy-money politices being in place not just here, but worldwide, for a very long time. Stocks, investment-grade paper, high-grade municipal paper - they're all headed far higher.
  • Nov. 12, 2012, 12:07 PM
    U.S. credit risk appetite remains on the "cusp of euphoria," says Credit Suisse, as its proprietary indicator hits levels not seen since mid-2007 and late-2009. Typically, says the bank, now is about the time to start to look for signs of exhaustion.
  • Nov. 7, 2012, 9:11 AM
    The borderline-frothy corporate bond market may get another boost as the Basel Committee considers including A-rated paper as among assets held by banks allowed to be classified as "liquid." The move would have effect on the entire market, as banks swallowing up A-rated bonds would force "real-money" investors into weaker credits.
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  • Nov. 7, 2012, 6:28 AM
    A fall in the short-term bond yields of Exxon Mobil (XOM) and Johnson & Johnson (JNJ) to below those of comparable Treasurys - a rare phenomenon caused by soaring demand as investors seek safety and a bit of return - is prompting some investors to predict that top-rated companies could soon be able to issue debt at cheaper rates than the government. "It's only a matter of time," says Carret's Jason Graybill.
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  • Nov. 2, 2012, 5:44 AM
    Having been prevented from issuing bonds early this week because of Hurricane Sandy, companies jumped into the market with a vengeance yesterday, raising almost $12B worth of debt. BP (BP) with a $3B deal and GD (GD) with $2.4B led the way, although AbbVie - soon to be spun off from Abbott Labs (ABT) - delayed a $10B offering until next week.
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  • Oct. 25, 2012, 5:08 PM
    Taking advantage of the seemingly insatiable investor desire for yield, iShares, the proprietor of the $25B Investment Grade Corporate Bond ETF (LQD), files to launch the Corporate Bond ETF. The new fund will attempt to appeal to a more risk-averse investor in that it won't invest in the paper of financial firms (which tends to have wider spreads than other sectors).
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  • Oct. 22, 2012, 3:33 PM
    U.S. bond issuance topped $1T YTD last week, nearing 2007's all-time high as companies take advantage of low rates and yield-starved investors, and rush paper to market. "This is a Fed-engineered bubble," says a senior banker, who adds he sees no catalyst to derail things. Others say it's wholesome - businesses refinancing existing debt at lower rates. LQD +7.7% YTD.
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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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