Some economic data points support upside for corporate bonds this year.
“U.S. manufacturing was unexpectedly strong in January, and employer hiring last month jumped by the most in almost a year,” according to Bloomberg. “Any signs of slowing growth could keep the Fed at bay even as earnings stay relatively strong, in a replay of the post-crisis, bad-news-is-good-news investing strategy.”
SPXB’s 30-day SEC yield of 4.10% is about 55 basis points above the yield on the widely followed Markit iBoxx USD Liquid Investment Grade Index. As of the end of 2018, about 47% of SPXB’s holdings were rated between AAA and A-. The fund’s effective duration is 7.37 years.
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