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Posted by
Two Blokes Jul 11 -
Filed in
Stock
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SPDR Portfolio Corporate Bond ETF offers a diversified investment-grade corporate bond portfolio with a 7-year duration and a 5.2% yield, but credit spreads are historically tight. Potential upside from rate cuts is limited, with only modest capital gains possible if 7-year rates fall to their neutral range. Credit spread risk is skewed to the downside; current spreads are at the bottom of their historical range, leaving significant room for widening in a downturn.
