Pimco Investment Grade Price, Forecast, Insider, Ratings, Fundamentals & Signals

PIMCO's corporate bond ETF seeks to provide optimized exposure to investment grade corporate bonds with excess yield relative to government securities. The fund has over 1,500 holdings, with a focus on investment grade corporate bonds, particularly BBB-rated credits, and has a 6.2 years duration. The ETF has performed similarly to the larger iShares iBoxx $ Investment Grade Corporate Bond ETF, with a slight outperformance due to lower duration.

M&A was almost dormant in 2023. In the US, as a proportion of the market value of the benchmark equity indices, it fell to its lowest level in 20 years, according to McKinsey. Credit investors are not traditionally supposed to be fans of M&A, and it's true we are wary of leveraging M&A, where debt is loaded onto balance sheets to buy competitors. We are seeing a comeback for M&A that we think is likely to continue through 2024.

I review the PIMCO Investment Grade Corporate Bond Index ETF and compare it to the HYG ETF and FALN ETF, which invest in lower-rated corporate bonds. The article analyzes the risk and return of each ETF, highlighting the differences in ratings, yields, and portfolio strategies. Based on that analysis, my view is CORP is only for very conservative investors as the return lost is not justified by the risk avoided. At best, a Hold rating.

Recent uncertainty, instigated by the issues seen across the financial sector, has led to a change in investment flows seen across exchange traded funds. A change in investment flows can be seen over the month of March as equity market volatility has increased.

The Fed held interest rates steady at a near-zero level in its latest June meeting, but raised the rate hike expectations.

Let's take a look at some ETFs for current income and likely capital appreciation as the Fed officials project sooner-than-expected interest rate hikes.

As widely expected, the Fed held interest rates steady at a near-zero level in its latest meeting.

As widely expected, the Fed held interest rates steady at near-zero level in its latest meeting and maintained bond buying. However, the Fed beefed up growth projections for the U.S. economy.

The sudden stop to markets induced by COVID-19 caused a substantial repricing of credit risk globally, and central banks, treasuries, and ministries of finance around the world responded unequivocally.

We downgrade investment grade credit to neutral and increase our overweight in high yield as we see volatility rising after a rally in risk assets.