Q: What do you think about swapping dxv for zst for 1% higher yield.
Thank you
Thank you
5i Research Answer:
DXV is much smaller, but has an indicated yield of 4.77%. ZST is 3.80%. We would note that DXV has a much higher average duration (3.1 years vs 0.3 years) so there is additional interest rate risk. But considering the rate outlook, we would be OK with a switch.