ISHARES SHORT MAT BOND ETF NEAR
March 19, 2020 - 3:12pm EST by
casper719
2020 2021
Price: 44.30 EPS 0 0
Shares Out. (in M): 6,500 P/E 0 0
Market Cap (in $M): 6,500 P/FCF 0 0
Net Debt (in $M): 0 EBIT 0 0
TEV (in $M): 0 TEV/EBIT 0 0

Sign up for free guest access to view investment idea with a 45 days delay.

Description

This will be an extremely brief write up as the opportunity is very straight forward and likely fleeting.

NEAR is a short maturity bond ETF managed by BlackRock holding a highly diversified portfolio of blue-chip credits (see here: https://www.ishares.com/us/products/239854/ishares-short-maturity-bond-etf). There are 444 different securities in the fund as of March 18, 2020. The avg weighted coupon is 2.62% and the effective duration is 0.59 years and yet it is down approximately 8% today, an approximate discount of 10% of NAV. Considering this is a fund comprised of the highest quality, short duration paper, I think it is fair to say someone is getting liquidated and just indiscriminately selling at these prices.

If these issuers are about to have a wave of defaults, you have bigger problems than taking a hit in this “cash at a discount trade”.

 

 

I do not hold a position with the issuer such as employment, directorship, or consultancy.
I and/or others I advise hold a material investment in the issuer's securities.

Catalyst

Whoever is puking stops

    show   sort by    
      Back to top