High Yield Is Not As High As You Think. WEA Vs. FALN, CEF Vs. ETF

2025-02-19 10:55:28 ET

Summary

• Recent trends show narrowing spreads between Treasuries and investment-grade bonds, pushing us to explore slightly below investment-grade bond portfolios for better yields.
• We analyze iShares Fallen Angels USD Bond ETF and Western Asset Premier Bond Fund for their yield potential and risk profiles.
• FALN offers a 6.88% yield to maturity with a "BB-" credit score equivalent, while WEA provides a 7.27% potential yield with a "BB+" credit score equivalent.
• Given current market conditions, WEA appears to be a better choice due to its higher-rated holdings and potential for Alpha while trading at a discount.

This article will be posted as an example of articles that will go directly to the public. There is no actionable trade idea in this article, and we are just sharing part of our research at Trade With Beta with the general public to gain more followers....

Read the full article on Seeking Alpha

For further details see: