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Sage's Smith: Cool It, Bonds Will Be Fine

FYI: Sage is the world’s leading fixed-income ETF strategist. Based in Austin, Texas, it’s made a name for itself by offering institutional-grade insights and portfolios that consistently stay one step ahead of where fixed income is going.
Regards,
Ted
http://www.etf.com/sections/features-and-news/sages-smith-cool-it-bonds-will-be-fine?nopaging=1

Comments

  • A totally reasonable position:

    "We are basically overweight investment-grade credit. We have reduced ... our exposure to high yield. We have ... eliminated our exposure to bank loans. We have a small position in preferred stocks.

    "We're starting to roll up, if you will, our credit exposure, and we're starting to get more concerned about not getting paid as well as we used to get paid for some of that risk.

    ...

    "While we've been reducing credit risk, we've also been somewhat moderating our duration exposure and being more careful about the fact that rates may start to trend a little bit higher here, although not significantly. ... not eliminating credit risk in totality, but preferring more investment grade as opposed to high yield."
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