Investment Q&A

It is true that corporate bonds are likely a better credit risk than US debt, in that there are 'assets' to a corporation and the US debt can just be paid off with printed money if need be. Corporates carry credit risk still, however, and in a financial or other crisis we are sure US bonds and the US dollar will once again return as a bastion of safety. So we would not suggest a wholesale switch. But we would be comfortable owning corporate bonds. We do not specifically cover bonds: it comes down to the individual credit risk of the companies one is interested in. In addition, most brokers have a limited inventory of corporate bonds, and many do not trade actively. For this reason, we would prefer sector investment via an ETF. CBO can be suggested in Canada; VCIT in the US. We would prefer mid-term today.