Tomahawk, WI 10/01/2013 (BasicsMedia) – The iShares Barclays 20+ Yr Treas.Bond (ETF) (NYSEARCA:TLT) is one of the stocks which most analysts are paying close attention to. The stock is quiet attractive at the moment and appears to be attracting a number of new investors. The risks associated with this stock are quite high, than what you would expect to get with similar stock, but it is all for good reasons. This stock’s market cap is valued at around $2.9 billion showing just how important of a player it is in the industry served by ETFs. It remains attractive for a number of reasons as shown here.

 A few of the other ETFs which are found as part of iShares Barclays 20+ Yr Treas. Bond include Lehman Brothers 20+ Year U.S Treasury Index, and the U.S Treasury Securities. Therefore, it is a stock which can give a good and quite accurate indication of how the ETFs are likely to perform. It is also a stock which can be used to accurately determine the direction which the U.S. Treasury Bonds will take going forward. There is no doubt that this stock plays a massive role in the provision of information which investors need to make decision on U.S Treasury Bonds.

 How TLT Helps to Identify Risks

 The bodies which monitor the performance of TLT indicate that the stock is expected to grow to an impressive 1.3% which is way above the average of 1.2% in the industry. This is according to the Federal Open Market Committee. This committee had suggested that there was going to be some sort of slowdown in terms if the bonds being bought by investors and the public alike. One of the bonds in question was the one which falls under TLT’s jurisdiction. Wall Street and a number of investors had used this outlook by FOMC as the basis of making their decisions.

 Instead of the slowdown, there seems to be a spike in the amount of bonds being purchased by the public and investors. TLT is at a place where it plays a very important role in many segments. It has the capacity to lead to U.S default, which would not augur well for the industry and the national economy as well. Moreover, this U.S default would probably not be good news for the global economy as well. Some people have even suggested that there should be as little discussion about TLT in the public domain so as not to trigger the likelihood of a U.S default.

 Sovereign Risk Has Increased

 The risks of default are quite higher for TLT. Sovereign default is the new danger and risk we have to live with in this day and age. Identifying such risks would have been next to impossible in the past, and many times this was done after the fact, rather than before. However, TLT now makes it easier to identify the risk in advance and take action early enough before they get worse and affect a larger pool of investors, investments and economies. It is for these reasons that TLT is one stock which has a lot of risks but is considered attractive, nevertheless.

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