Sell BIV and buy Intermediate Investment Grade Corporates?

[hcs77135]

Hi, I’m getting spooked by the prospect of a default on US government debt and have an impulse to want to sell my Vanguard Intermediate Bond Fund (where all my bond allocation is), which is 58% treasuries, and buy an investment grade corporate bond fund or etf. Can someone help me see all the flaws in this clearly emotionally-driven investment strategy? Or agree with it, and tell me why? It goes against everything I’ve been doing since I joined the site, and against my investment plan. Im sure I won’t do it, but I’m jittery. Thanks!

[exodusNH]

Hi, I’m getting spooked by the prospect of a default on US government debt and have an impulse to want to sell my Vanguard Intermediate Bond Fund (where all my bond allocation is), which is 58% treasuries, and buy an investment grade corporate bond fund or etf. Can someone help me see all the flaws in this clearly emotionally-driven investment strategy? Or agree with it, and tell me why? It goes against everything I’ve been doing since I joined the site, and against my investment plan. Im sure I won’t do it, but I’m jittery. Thanks!

If US Treasuries default, don't you think that corporate bonds will be safe? You're talking about the basis of the post-WWII economy being completely disrupted.

[Dave55]

If the government "defaults" on its debt and does not fix the default quickly, all asset classes will suffer. Investment grade corporates will get hit too. I hold a very large slug of treasuries and I am not sweating it. We had a few close calls, 2011 and 2013.

Dave

[secondopinion]

Oh no, another thread about this.

[Dave55]

delete

[123]

So you feel that there will be more confidence in Corporate bonds than the credit worthiness of the currency they're based on?