LQD: 3.15% Real Yield, Low Costs Make It A Buy

Summary

  • Treasuries are considered the cheapest segment of financial markets, while investment-grade corporate bonds offering yields above 5.3%.
  • The iShares iBoxx $ Investment Grade Corporate Bond ETF is a solid choice for risk-conscious investors, providing exposure to a broad range of US investment-grade corporate bonds.
  • LQD's portfolio is not overly risky from a credit perspective, with a high weighting in BBB and A-rated corporate debt, and it offers strong inflation-adjusted income.
  • With seasonal tailwinds, I also outline key technical price levels to watch.
Fixed Income

DNY59

Along with checking out weekly sellside research reports, I enjoy perusing the monthly J.P. Morgan Asset Management Guide to Markets. JPM added a slide at the end of the deck showcasing asset class valuation Z-scores.

What is the supposed cheapest

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