“We know that clients are still demanding yield in their portfolios, but introducing too much duration risk to get there is pretty impactful,” Mazza added. “We really think investors would be well served by having a blank slate in thinking about fixed income and understanding that there are different approach that we can take today.”
For instance, investors can move down the duration ladder with the SPDR Barclays Short Term Corporate Bond ETF (NYSEArca: SCPB) or the SPDR Barclays Short Term High Yield Bond ETF (NYSEArca: SJNK). Additionally, there is the SPDR Blackstone/GSO Senior Loan ETF (NYSEArca: SRLN), which offers yield and comes with a floating rate component.
Watch the video below to see the full interview with David Mazza.
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