ACBF Flash Update - Corporate bonds are becoming attractive again

Current Levels are extremely attractive for short dated bonds potentially offering investors over 10% yields for one year risk

Corporate bonds have not been attractive for many years with rates at zero because of extraordinary central bank support but the winds are now blowing from a different direction and “the times they are a-changin”.

ACBF has made 5% a year for five years and was a top 10% performer over this period running a short duration strategy with negligible interest rate risk. So, we believe this is a great time to buy quality high yielding bonds, especially at the short end of the credit curve, that are pricing in a depression not a recession.

In the Flash Update we look at four bonds we believe offer potential 10% returns. These bargains are largely technically driven and triggered by liquidations of easier-to-sell bonds by funds needing to finance investor redemptions. Consequently, the opportunities will not last long given these bonds short-term maturity and pull to par profile.

Please download the full ACBF Flash Update July 2022 here: