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PTIAX. I see the fund has a buncha money in "NJ Economic Development Authority." How can that make any money, at 0%, I wonder? Or does it mean it's a zero-coupon for a specified term?
M* (quote page) shows that this bond matures 2/15/2025, so in all likelihood it is CUSIP 645913BD5. As you said, a zero.
According to EMMA, it is currently trading at a YTW of about 4.2% (priced about 77 where 100 is par). While the underlying bond is rated BBB+, its insurance wrapper raises it to somewhere between A and AA (depending on the rating agency).
That seems like a pretty reasonable yield on a six year taxable bond of that quality. (Fidelity shows AA corporates maturing in five years to be yielding around 4%.). Otherwise I'd be wondering what a muni bond is doing in a taxable bond fund. 30% of the fund is in munis (even though M* doesn't show munis among the fund's top sectors).
The quote page is just a summary, while the final analyses are on the detail pages (performance, portfolio, etc.). I found the 30% figure on M*'s portfolio analysis page.
As with reading any data, it's a matter of knowing the definitions, what the numbers represent.
M* divides fixed income into six "super sectors" (groupings of sectors): government, municipal, corporate, securitized, cash, and derivatives. You see these on the portfolio page, except for derivatives. In its place M* shows "other".
M* does not report super sectors in its top sectors summary on the quotes page. It reports sectors. On the detailed portfolio page, there are no sectors under munis, so there's no muni sector to report on the quotes page.
That's what's happening with sectors on the quotes page. What shows up on the portfolio page under each super sector is a bit more messy.
For example, M*'s "official" list of sectors defines an inflation protected bonds sector within the government super sector. These inflation protected bonds can come from any country. M* gives British inflation-linked gilts as an example. Yet on the portfolio page for a fund, you see U.S. TIPS. It appears that these gilts would be lumped together with "regular" sovereign bonds as "Non-U.S. Government" bonds on the portfolio page.
Then there's the muni super sector that is supposed to contain two primary sectors: municipal tax-exempt (which is further broken down into secondary sectors), and municipal taxable (bonds subject to AMT). As noted above, the portfolio page doesn't show these sectors, or any muni sectors at all (just the super sector).
So I don't know where M* came up with the "sectors" it shows on the portfolio page. They don't match any set of definitions from M* that I've been able to find.
Thanks for the run-down. You're spelling-out the sort of stuff I have been only "sniffing-out." There's statistics, more statistics, then damned statistics. M* could be lots more accurate. I also note this, while we're on the subject: TRP PRSNX calls its fund: "Global Multi-Asset" Bond fund. M* labels it, "World Bonds." Same with MAINX. Matthews "Asia Strategic Income." That name would point to a specialized sort of approach. But M* says it's a "World Bond" fund. And it's virtually all in Asia, too. I understand Teresa Kong plays with Treasury futures, some.
Comments
According to EMMA, it is currently trading at a YTW of about 4.2% (priced about 77 where 100 is par). While the underlying bond is rated BBB+, its insurance wrapper raises it to somewhere between A and AA (depending on the rating agency).
That seems like a pretty reasonable yield on a six year taxable bond of that quality. (Fidelity shows AA corporates maturing in five years to be yielding around 4%.). Otherwise I'd be wondering what a muni bond is doing in a taxable bond fund. 30% of the fund is in munis (even though M* doesn't show munis among the fund's top sectors).
As with reading any data, it's a matter of knowing the definitions, what the numbers represent.
M* divides fixed income into six "super sectors" (groupings of sectors): government, municipal, corporate, securitized, cash, and derivatives. You see these on the portfolio page, except for derivatives. In its place M* shows "other".
M* does not report super sectors in its top sectors summary on the quotes page. It reports sectors. On the detailed portfolio page, there are no sectors under munis, so there's no muni sector to report on the quotes page.
That's what's happening with sectors on the quotes page. What shows up on the portfolio page under each super sector is a bit more messy.
For example, M*'s "official" list of sectors defines an inflation protected bonds sector within the government super sector. These inflation protected bonds can come from any country. M* gives British inflation-linked gilts as an example. Yet on the portfolio page for a fund, you see U.S. TIPS. It appears that these gilts would be lumped together with "regular" sovereign bonds as "Non-U.S. Government" bonds on the portfolio page.
Then there's the muni super sector that is supposed to contain two primary sectors: municipal tax-exempt (which is further broken down into secondary sectors), and municipal taxable (bonds subject to AMT). As noted above, the portfolio page doesn't show these sectors, or any muni sectors at all (just the super sector).
So I don't know where M* came up with the "sectors" it shows on the portfolio page. They don't match any set of definitions from M* that I've been able to find.
Morningstar Global Fixed Income Classification, 2012.
Maybe there's a US-only version that I haven't been able to locate.