Opportunities in bond markets

US Dollar bonds opportunities are arising

US Government bond yields have risen substantially lately, Short maturities yields have risen more than longer maturity ones, by definition the curve has flattened, see both graphs below

As you can notice, 3 years yields have risen more than the rest of the curve. This is creating opportunities, now you can invest in relatively short-dated bonds which now offer decent yields (in USD), which have not seen in many years.
In fact 3 years US Government bond is now yielding 2.4%, which is equal to 2008 levels.

Given that Corporate bonds have behaved well during the past 2 weeks of relatively stressful markets, it conceivable to think that now there are good opportunities in Short-dated bonds in USD. Some which are from solid companies and which now pay very good returns

For example L Brands, the maker of Victoria Secret brand, its 2021 bond is now paying a yield of 4.35%, vs 3.3% just two months ago.

I hope you will find this analysis useful.

• If you have questions please comment my post

bear in mind that this is not a recommendation, for investments you should always see professional advise that is tailor to your profile

Bests,

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Resources:

• Bloomberg terminal