The Latest News:
- CIU has attracted over $700 million in assets so far this Month and ranks among the top ten best selling ETFs over May.
- Investment grade corporate bond prices have been falling alongside Treasuries as yields inch higher, reports Michael Aneiro for Barron’s.
- Benchmark 10-year Treasuries currently yield about 2.12%.
- “It could be some scary times” in the investment-grade market, Dan Hannis, a corporate-bond trader at William Blair, said in a Wall Street Journal article.
- Hannis warns that prices could dip further if investors rush to sell investment-grade mutual funds after witnessing negative returns.
- “We think a lot of retail investors will look at these numbers and increasingly allocate away from investment grade corporate bonds – especially higher rated industrials,” Bank of America Merrill Lynch said, Barron’s reports. “This especially if interest rates rise further, leading to more pronounced NAV losses in IG bond funds.”
iShares Barclays Intermediate Credit Bond Fund
For past stories in this series, visit our ETF Spotlight category.
Max Chen contributed to this article.