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Not to the messenger; but to the writers of the article. Man, I'm glad I am not in this line of work; requiring to pump out something, anything.
Did it really require two people to put together this piece; and what did anyone learn???
We learned that junk bond holdings went down, along with the broad U.S. equity market recently when some folks were a little bit shaken. Apparently the marketplace remains on the 1-3 month investment return(s) range, eh? I also don't recall an explanation related to the title.
The title could have been, "What have your investments done for you in the past 1-3 months?" Holy crap. with this type of article; as Robin would say to Batman.
My 2 cents for HY vs, well; the SP-500/ SPY.
Typical for the HY versus the SPY measurements for the past 5 years is that for every 1% move in SPY, HY bond sectors (active managed) move .25 - .33%; up and down. Plain and simple. (These numbers are from personal experience with our holdings during this period.) Yes, there are times when these numbers do not follow this pattern.
A quick view of a plain jane HY bond fund; and not even the best of the bunch, is to review SPHIX vs SPY.
I was looking recently at a fund I vacated about 6 months ago, CVSIX. Yikes did it take a dive starting around September 1. YTD it's up a bit over a half percent.
What's interesting about this fund is that they call it a "Market Neutral" fund and market it as a conservative income-oriented offering. In addition, Calamos sees itself as one of the leaders in fixed income, convertible & high yield investing.
Not to the messenger; but to the writers of the article. Man, I'm glad I am not in this line of work; requiring to pump out something, anything.
Did it really require two people to put together this piece; and what did anyone learn???
We learned that junk bond holdings went down, along with the broad U.S. equity market recently when some folks were a little bit shaken. Apparently the marketplace remains on the 1-3 month investment return(s) range, eh? I also don't recall an explanation related to the title.
The title could have been, "What have your investments done for you in the past 1-3 months?" Holy crap. with this type of article; as Robin would say to Batman.
My 2 cents for HY vs, well; the SP-500/ SPY.
Typical for the HY versus the SPY measurements for the past 5 years is that for every 1% move in SPY, HY bond sectors (active managed) move .25 - .33%; up and down. Plain and simple. Yes, there are times when these numbers do not follow this pattern.
A quick view of a plain jane HY bond fund; and not even the best of the bunch, is to review SPHIX vs SPY.
Nice post catch. And not just since January 1999 but junk bonds have beaten (barely) the S&P since junk's infamous bottom in mid December 2008. All in all, junk bonds have been the place to be this century. The allure of junk bonds has always been their risk adjusted returns as compared to the S&P. I realize some aren't into risk adjusted returns but the volatility I have to endure in an asset class is paramount to how I trade/invest, i.e. the lesser the better.
Comments
Did it really require two people to put together this piece; and what did anyone learn???
We learned that junk bond holdings went down, along with the broad U.S. equity market recently when some folks were a little bit shaken. Apparently the marketplace remains on the 1-3 month investment return(s) range, eh? I also don't recall an explanation related to the title.
The title could have been, "What have your investments done for you in the past 1-3 months?" Holy crap. with this type of article; as Robin would say to Batman.
My 2 cents for HY vs, well; the SP-500/ SPY.
Typical for the HY versus the SPY measurements for the past 5 years is that for every 1% move in SPY, HY bond sectors (active managed) move .25 - .33%; up and down. Plain and simple. (These numbers are from personal experience with our holdings during this period.)
Yes, there are times when these numbers do not follow this pattern.
A quick view of a plain jane HY bond fund; and not even the best of the bunch, is to review SPHIX vs SPY.
Total returns:
Jan, 1999 - Oct 22, 2014
SPHIX = + 166%
SPY = + 107%
The nasty period, Oct 2007- March 19, 2009
SPHIX = - 24%
SPY = - 48%
Data source is Stockcharts.com.
Your mileage may vary.....
Regards,
Catch
What's interesting about this fund is that they call it a "Market Neutral" fund and market it as a conservative income-oriented offering. In addition, Calamos sees itself as one of the leaders in fixed income, convertible & high yield investing.
FWIW
Regards,
Ted