iShares 5-10 Year Investment Grade Corporate Bond ETF

IGIB

Valor de mercado US$ 18,9 bi

Bonds are paying the best yields in years and still dragging portfolios into the red, leaving investors scrambling for a defensive asset that actually defends. A growing group of Wall Street managers thinks the answer involves shorting Treasuries outright.

U.S. bond yields are rising, providing an increasingly attractive alternative to pricey stocks. Trump's unorthodox policy may be causing this trend to accelerate.

iShares 5-10 Year Investment Grade Corporate Bond ETF (IGIB) currently faces a pronounced downtrend, with price below key moving averages and weak momentum. IGIB's recent depreciation is driven by rising interest rates, not credit stress, as spreads remain tight and credit quality stable. The fund offers a compelling 5.9% yield, low expense ratio (0.04%), strong liquidity, and monthly distributions, but price pressure persists amid rate volatility.

The global competition for capital remains the key dynamic keeping yields elevated. Notably, all of the September increase in 10-year Treasury yields came from real yields, as implied by the TIPS market.

Japan, Europe, and the U.S. were feeling the fallout from France, where yields on its benchmark 10-year note climbed closer to 5%, the highest since 2002.

Rolling coverage of the latest economic and financial news

US Treasuries rebounded from the global bond selloff that raced through European markets on Thursday, pulling 10-year yields back from a 24-year high. Bloomberg's Ira Jersey joins to discuss.

Retail investors buy corporate bond ETFs expecting steady coupons and ballast against stock market volatility. Traditionally, fixed-income portfolios were anchored by defensive issuers like banks, industrials and utilities.

Oil soared above $107 a barrel on Monday on news President Trump rejected an Iranian peace proposal and expects to resume US strikes after the November midterms – threatening to keep inflation higher for longer.

With Treasury yields climbing to their highest since 2007, the AI infrastructure buildout is about to get even more expensive. JPMorgan Chase estimated in June that $4.1 trillion in AI-related debt will be issued through 2030, as data center companies and others tied to the AI boom race to build up capacity.