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Wealthtrack: Peter Fisher and Dan Fuss – scouring the world for income

beebee
edited January 2012 in Fund Discussions
Peter Fisher of Blackrock and Dan Fuss (LSBRX and other Loomis Sayles funds) discuss income strategies:

http://www.wealthtrack.com/

Comments

  • TedTed
    Dear Bee: Thanks !
    Regards,
    Ted
  • beebee
    edited January 2012
    It sound like they are both in agreement with respect to holding Morgan Stanley and BOA bonds...Peter Fisher's suggestion of Eaton Vance Floating Rate Income fund (EFT)...yielding 9%...selling at a discount... which hold a large stake in both companies (bonds) as well as :

    Top 25 Holdings:
    http://portfolios.morningstar.com/fund/holdings?t=EFT&region=USA&culture=en-us
  • fundalarmfundalarm
    Reply to @bee: current distribution rate on share price, from the page you attachd, is 6.85%. I have for years trusted Nuveen with their closed-end fund offerings. A similar floating rate fund there (they have a few) would be JRO. It has a higher yield. Both EFT, JRO and other cef's in this universe are leveraged. As a result, they move higher in an up-market, but loose much more in the down market (just check 2008 performance). If you're currently in a search of the senior /floating loan fund and would settle for less yield, but no leverage, use fidelity's or vanguard's offerings.
  • beebee
    Reply to @fundalarm:

    Thanks...need to do my due diligence. Thanks for the suggestions.
  • Sven
    Reply to @fundalarm: Thanks for heads-up with closed-end funds on floating rate funds. Although Fidelity has one in this asset class, Vanguard does not. Do you have the trading symbol ? thanks.
  • fundalarmfundalarm
    Reply to @Sven: i have to apologize -- i assumed Vanguard has one, but have not checked. I have my hubby invested in Fidelity's FFRHX, since he doesn't have time nor desire to track investments. I however am a bit more active (often to my detriment, lol) and choose the closed end funds. The cost of leverage is very low due to historically low interest rates and this helps increase the yield. Also, what I like about the cef universe is that at times of panic the manager is not affected by the outflows and doesn't have to dump securities at the worth possible time -- instead investors dumps them on exchanges thereby increasing discounts to NAV. If you can take the volatility, then cef's are a better buy.
  • Sven
    Transcript of this week's interview is enclosed below. Enjoy.

    http://www.wealthtrack.com/transcript_01-13-2012.php
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