Deep Value Investing When Interest Rates Are Zero

Deep Value Investing When Interest Rates Are Zero by Victor Wendl, Wendl Financial.

While sitting next to the chief executive officer (CEO) of Blackrock on a panel at the recent Delivering Alpha Conference, billionaire Carl Icahn commented on the risk associated with investing in a high-yield bond exchange traded fund (ETF). Making a negative comment on a financial product when its CEO is sitting right next to you might make some people feel a little uncomfortable, but billionaires are not average people. Icahn’s concern was regarding the lack of liquidity in high-yield bonds. If redemptions cannot be met in an ETF that holds junk bonds, investors could be forced into taking severe losses. However, blaming an institution...