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Tip for the TIPs, & Loomis Multi-Sector bond...LSBDX & other classes...........

catch22catch22
edited June 2012 in Fund Discussions
A note for those holding TIPs bond funds, to keep a watchful eye.
It appears, including today's close in 15 minutes or so; that the average TIPs fund will give up about .8% in these last two days of the week. I can not provide any great insight into this move. One personal theory may relate to the Fed. chat about continuing the "Twist" operation and theorectically would sell the short dated Treasury issues and buy the longer date issues, but I don't suspect this includes TIPs. Perhaps some big money has moved out of TIPs and into bets towards the longer dated Treasury issues. Tis me best guess.

However, if you have held TIPs funds for the past several years; you can not whine.
TIPs average YTD = 4%, 1 year = 12% and the 3 year total return/cap. apprec. =11%.

As to LSBDX or LSBRX and other share classes of this fund. LSBDX produced a -.55% on Thursday. This could have been a distribution, as June 21 was the dist. date in 2011. This is not the case at this time. One may suspect that if the fund is holding an allowed 20% in equity, that the price on Thursday was a result of the equity sell-down. Pricing may be further confused today (Friday), through the weekend or on Monday; as this fund normally has distributions between the 21st and 26th of a given month.

OK, just in case you were wondering.

Take care,
Catch

Comments

  • fundalarmfundalarm
    it seems that the markets were disappointed with the Fed and ALL inflation protection got clobbered. actually, TIPs suffered much less than commodities. Also, don't forget that nominal treasuries fell this week. They are the basis for TIPS pricing.
  • kv968
    My guess would be that people sold off seeing that there may not be much CPI inflation coming down the pike. At this point that's where you're getting practically all the yield on TIPS since the currenet fixed rate is 0.75% for the 5-yr and 0.25% for the 2-yr.
  • catch22catch22
    LSBDX and LSBRX did provide distributions on June, 22 of $0.0605 and $0.0566 per share, respectively; and just recently posted. Both funds show very sloppy action at this time; and again, perhaps this is due to equity exposure of the funds.
    Watching.......
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