Bank of America strategies, though, are still “long-term bullish on credit and remain strategically overweight.” They also recommend buying credit-default swap protection “until we get comfortable with the coming acceleration of outflows. The recent sell-off and any further weakness only work to make for more attractive entry points from the perspective of long-term, patient, investors.”
Currently, there are no credit default swap ETFs available on the U.S.-listed markets, but ProShares is working on a suit of CDS related funds. [Because You Need a CDS ETF]
Investment-grade debt related ETFs include:
- iShares Barclays 7-10 Year Treasury Bond Fund (NYSEArca: IEF): down 4.7% year-to-date
- iShares Barclays 20 Year Treasury Bond Fund (NYSEArca: TLT): down 9.2 year-to-date
- iShares iBoxx $ Investment Grade Corporate Bond Fund (NYSEArca: LQD): down 6.4 year-to-date
- iShares Barclays Credit Bond Fund (NYSEArca: CFT): down 5.0 year-to-date
For more information on debt securities, visit our bond ETFs category.
Max Chen contributed to this article.