Original Conversation
Timestamps
What Happened Last Week – 00:16
What’s Happening Next Week – 06:47
Original Portfolio Update
Original Comments
Original Conversation
Timestamps
What Happened Last Week – 00:16
What’s Happening Next Week – 06:47
Original Portfolio Update
Original Comments
15 Responses
Hi Nick. SPSB sounds good, but isn’t it more or less the same as SLQD? It’s not exactly the same duration, but very close. Thanks.
Actually, the average duration is 2y for both funds and the yield difference is minimal (the 30-day SEC yield is 4.31% for SPSB and 4.36% for SLQD). My Irish version of SLQD has tax advantages too. Is there any particular reason to go for SPSB instead that I may be missing, like some bonds being 5y while the curve steepens? If not, I’ll just add to “my SLQD”.
No, stick with what you know and like.
Hello, Hola, Miguel! What’s your irish version of SLQD? Interactive Brokers doesn’t allow me to trade US ETF’s, so I have to look for UCITS that replicate (or sort-of) the ETF’s in the 2GB portfolio. Thank you!
These are the ones I use. There are also EUR hedged versions if you need those.
https://www.nl.vanguard/professional/product/etf/bond/9592/usd-corporate-1-3-year-bond-ucits-etf-usd-accumulating
https://www.ishares.com/nl/particuliere-belegger/nl/producten/287335/ishares-short-duration-corp-bond-ucits-etf
Nick, do you like short term corp bonds over say 2 yr US treasuries right now due to the extra yield?
Yes. And the problem is with the US deficit, not the corporate sector. I am trying to find something where you have minimal negative carry/maximum yield and has low risk.
Thanks Nick, outstanding as always. In your original portfolio update you stated that when the market breaks the inversion levels on 2s-10s and 2s-30s from about two weeks ago it will be bad day for equities. I understand as bond yields increase it will cause problems for equities in general but was wondering if you could explain why specifically surpassing these recent levels would be a big catalyst.
It will cause reallocation amongst money managers, which causes volatility. Just like the first few days of August, when the same thing happened.
Nick, will you be updating the portfolio spreadsheet soon with the trades discussed over the weekend?
When I do them, yes. As I said in the video: you will get a notification when I do them. Targeting the 96.20 area TLT at the moment.
If you were to need clarification or ask a question from a mid-week update where would you do that?
Write me an email.
Where is the mid week update?
From the main menu, click on Original and then scroll down past the weekly updates.