SPLB: High Duration Investment Grade Bond Fund, 5.4% Yield

Binary Tree Analytics
5.15K Followers

Summary

  • The SPDR Portfolio Long Term Corporate Bond ETF is a fixed income ETF that focuses on investment grade corporate bonds.
  • SPLB has a longer duration of 12.9 years, compared to the iShares iBoxx Investment Grade Corporate Bond ETF with 8.5 years.
  • The main risk factors for SPLB are interest rates and credit spreads.
  • 10-year yields have now reached a balance point, with many strategists expecting them to remain at the 4% level for 2024.
  • IG corporate bonds credit spreads are very narrow when compared to their historic range.
American cash money and yellow post it note with text Bonds

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Thesis

The SPDR Portfolio Long Term Corporate Bond ETF (NYSEARCA:SPLB) is a fixed income exchange traded fund. The vehicle focuses on investment grade corporate bonds, and represents an alternative to the much better known iShares iBoxx Investment Grade Corporate Bond

This article was written by

5.15K Followers
With an investment banking cash and derivatives trading background, Binary Tree Analytics ('BTA') aims to provide transparency and analytics in respect to capital markets instruments and trades. BTA focuses on CEFs, ETFs and Special Situations, and aims to deliver high annualized returns with a low volatility profile. We have been investing for over 20 years after obtaining a Finance major at a top university.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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