Implementing the Tactical Short Bond Position
Tuesday, April 27th, 2010hETFund submits:
Sector: Fixed Income
iShares Barclays 1-3 Year Credit Bond Fund (CSJ)
Rising interest rates are presently one of the most discussed investment risks. The market risk of long-term bonds can be hazardous to a portfolio if Treasury yields increase by a meaningful amount. Regardless, the present state of money market yields – which are near zero – have forced investors further along the yield curve to obtain income. Treasury bonds intuitively make sense as a safe investment to bolster yield but the duration component of these bonds can potentially be hazardous to your portfolio’s health. We examine several fixed income ETFs that can augment the yield of a portfolio in a two-step process 1) basic yield enhancement or 2) implementing a tactical fixed income short position.
