Q: If Congress fails to increase the debt limit, how do you think it will impact the price of TLT and XLB? Thank you.
5i Research Answer:
TLT would like fall as investors fear a full US default. XLB may not fall as much as the Canadian dollar would not be directly impacted, but would just see as sentiment change. But of the two XLB would be preferred in such a scenario because the C$ would likely rise in value versus the US$,
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in TLT.