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Posted by
Two Blokes May 22, 2025 -
Filed in
Stock
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4 views
VTC offers broad, investment-grade corporate bond exposure with a low expense ratio, but is overweight BBB credits and has a 6.7-year duration. Current credit spreads and rates are not attractive for entry; spreads are near historic lows and rates may move structurally higher due to inflation and deficits. We expect VTC to become attractive only after a significant widening in credit spreads, ideally above 150-200 bps, or during a recession scenario.
