LQD - LQD: Quality Bonds Still Face Inflation And Fed Headwinds

2024-04-19 15:01:38 ET

Summary

• The article evaluates the iShares iBoxx Investment Grade Corporate Bond ETF as an investment option at its current market price.
• I correctly predicted a good buy opportunity for bonds in late 2023, but believe the opportunity for IG-rated corporate bonds in 2024 is limited.
• IG-rated corporates have narrow spreads and remain challenged by inflation and Fed inaction.

Main Thesis & Background

The purpose of this article is to evaluate the iShares iBoxx Investment Grade Corporate Bond ETF ( LQD ) as an investment option at its current market price. This fund has a stated objective "to track the investment results of an index composed of U.S. dollar-denominated, investment grade corporate bonds"....

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