by winston » Tue Jun 30, 2015 8:22 pm
not vested
iShares 20+ Year Treasury Bond ETF (TLT)
Concerns over a rate hike have plagued bond ETF investments as of late, but the Greek situation could be just the kick to get things moving back in the right direction.
After all, given the uncertainty in Europe, the demand for safe American bonds will increase, helping to push yields lower in the process.
We have already seen part of this take place with TLT as lower rates help to boost the prices in this fund, as it added about 2% in Monday trading.
And if Greece slides closer to default look for the gains to continue here as more investors pile into American debt (see Grexit Fears and Fed Meeting Put These ETFs in Focus).
It should be noted that there are a variety of bond ETFs trading in the market right now but TLT and other long-dated securities look to be the biggest winners. That is because they are the most sensitive to changes in rates so a big drop stands to make these securities benefit more than most in the fixed income world.
Source: Yahoo Finance
It's all about "how much you made when you were right" & "how little you lost when you were wrong"