Play Critical Minerals The Bond Way

By now we are all aware of America’s push for rare-earths and critical minerals independence. Similar to the oil shock of the 70’s, and the resulting drive for energy independence (and the attainment of oil producer #1 … USA USA USA!!), China’s douchey hoarding of critical metals (needed for aerospace, defense, and high-tech) has led the US on a quest to break this critical minerals dependence.

From an equity side, there are a number of ways to play this and various stocks to own and/or follow. UAMY, UUU, MP, PPTA, ALOY, NB, and USAR are just a few of many.

But what about the fixed income side? What if an investor wanted to buy some fixed income names with credit exposure to critical minerals?

The Dr Rhesus Secret Algo recently constructed for us a sample fixed income portfolio, with the following constraints:

1. The bonds must be liquid, with securities available via an electronic platform. Since many of the names in this space are equity funded, or with limited fixed income float, this constraint narrows down our investable universe quite dramatically.

2. The bonds generated by the Secret Algo must be rated CCC+ or higher.

3. The bonds must mature inside of 10 years.

The Dr Rhesus Secret Algo suggested the following names to play the rare-earths initiative:

Chemours Corp (CC) 7.875% due 3/15/2034. Rated B1/BB-. Yield 7.80%. Cusip: 16309AL77.

Cleveland Cliffs (CLF) 4.875% due 3/1/2031. Rated B2. Yield 6.96%. Cusip: 1852LAL9.

Chemours is one of the world’s leading producers of titanium dioxide and operates a significant mineral sands business through its Titanium Technologies and Advanced Performance Materials segments. Its mining operations produce heavy mineral concentrates containing titanium-bearing minerals and monazite, a mineral that can serve as a source of rare earth elements. Chemours’ mineral resources and processing expertise position the company as an important upstream participant in strategic materials markets. The company’s credit profile therefore offers investors exposure to growing demand for critical mineral feedstocks while maintaining the diversification benefits of a broader specialty chemicals platform.

Cleveland-Cliffs complements this exposure through its role as the largest producer of flat-rolled steel in North America and a critical supplier of high-quality iron ore and steel products used in infrastructure, automotive manufacturing, energy systems, and defense applications. Although steel itself is not classified as a rare earth material, it remains an essential foundational input for virtually all critical mineral extraction, processing, transportation, and end-use applications. The company’s vertically integrated domestic production footprint aligns closely with U.S. industrial policy objectives focused on reshoring strategic manufacturing and strengthening critical mineral supply chains. The Dr Rhesus Secret Algo states that Chemours and Cleveland-Cliffs provide bond investors with diversified exposure to the physical materials ecosystem supporting critical minerals development.

So, take it from Dr Rhesus: no matter how packed with jet fuel your portfolio may be, a little slice of fixed income is never a bad idea. Why not add some strategic credit exposure?