Macro Tsimmis

intelligently hedged investment

SELL iShares Investment Grade Corporate Bonds ETF (LQD)

Posted by intelledgement on Mon, 20 Dec 10

We were hoping to hold onto this long play on bonds for longer, but the deal between President Obama and the GOP Congressional leadership on taxes that was consummated over the weekend—significant cuts in revenue with no accompanying cuts in spending—has tipped the balance in favor of inflation and higher interest rates. Consequently, the value of bonds is falling faster than the payout from the interest rate we are being paid on our investment is filling our coffers, and we need to hit the eject button here now.

Previous LQD-related posts:


Leave a Reply

Please log in using one of these methods to post your comment: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: