FLOT: It's The Perfect Time For Floaters, In My View

Real rates are firmly positive at the short-end and I can't see that changing anytime soon. I think FLOT presents cost-effective exposure to floaters, allowing portfolios to set-up a barbell alongside duration. I also deem equity valuations high and don't think it's a bad time for a cash plus vehicle such as FLOT. Credit risk exposure usually remains contained unless a six sigma event hits. I am however concerned about its near 50% exposure to corporate issuers in the banking industry during a period of heightened fiscal risk.

I decided to do a write-up about iShares Floating Rate Bond ETF ( FLOT ) for two reasons. Firstly, I think it's a good time to own floaters, in light of favourable short-term real rates. Secondly, I recently covered duration via This article was written by Pearl Gray Equity and Research 4.93K Followers Follow Readers can expect cross-asset coverage built on macro, risk, and qualitative fundamental analysis. Analysis generally assess top-down, which naturally leads to reports being stronger up-top. The primary areas of focus include FICC, portfolio management (active ETFs), financial sector, and real estate commons & preferreds.