IUSB Has Minimal Credit Risk, But Duration Is A Problem

Summary

  • You know rates are rising, so don't invest in something where it appears further rate hikes aren't priced in.
  • IUSB hasn't any credit risk, but it does have duration risk.
  • 10% decline implies something like a 2% rate hike since the beginning of the year. They could go further, so we'd not risk it here.
  • Looking for a helping hand in the market? Members of The Value Lab get exclusive ideas and guidance to navigate any climate. Learn More »

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cagkansayin

The iShares Core Total USD Bond Market ETF (NASDAQ:IUSB) is one of those bond ETFs that the concerned investor might be considering right now to defend against the oncoming recession. Employment is on stilts while consumer confidence collapses. Economic conditions

IUSB credit type

Credit Profile (iShares.com)

IUSB maturity

Maturities (iShares.com)

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This article was written by

Author of The Value Lab
A long-only voice with eclipsing growth through 2020 and 2022 bear markets.

Valkyrie Trading Society seeks to provide a consistent and honest voice through this blog and our Marketplace Service, the Value Lab, with a focus on high conviction and obscure developed market ideas.

DISCLOSURE: All of our articles and communications, including on the Value Lab, are only opinions and should not be treated as investment advice. We are not investment advisors. Consult an investment professional and take care to do your own due diligence.

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