🕊️   VCLT: Corporate Bond Investors Need To Look At This Chart - Seeking Alpha

I will get to my point right away. My thesis is that now is a really bad time to buy corporate bonds, especially long-term bonds like those in the Vanguard Long-Term Corporate Bond Index Fund ETF Shares (NASDAQ:VCLT). In the remainder of this article, I will detail my argument. But the gist is all summarized in the following chart – a chart I urge all corporate bond investors to look at. As a bond investor myself, a key parameter I monitor closely is the yield spread between BAA corporate bonds and Treasury Rates (referred to as SBAA hereafter). It is a key parameter I use to gauge the risk premiums of corporate bonds relative to risk-free interest ...

seekingalpha.com     Mar 27, 2024