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Gundlach Leads Bond Funds Boosting Cash To Most Since 2008

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  • Howdy Ted,

    Thank you again for the "of value" writes you discover and link.

    From the article; I sure would like to know what this really means:

    The fixed-income portion of BlackRock’s Strategic Income Opportunities Fund has 43 percent of its assets in cash and cash equivalents. What constitutes a "cash equivalent" for Blackrock....TIPS ?

    Our house should have had our "cash equivalents" parked in a TIPS fund since the 1st of Feb.

    In spite of who or what is still crawling in the debt resolution bushes in DC, and my investment brain cells having perhaps only 5% of the skill sets of the bond fund managers mentioned in the article, I will maintain my intuition continues to cause me to feel that the 10 year T-bond has a better chance of finding a 2.55% yield VS a 3.55% yield for the remainer of 2011.

    Regards,
    Catch
  • edited July 2011
    Catch, if you can figure out anything in that portfolio, you should start on your "financial explainer" website. Apparently part of the cash equivalents (which, by some reckonings, are 60%) are "over-the-counter put swaptions" (which are different from their OTC put options) and TBA sales commitments on FNMA CMBS 30 years.

    The complete portfolio is in the annual report at the BlackRock website and Morningstar. I tried linking directly to it, but the link is complex enough that it keeps erroring-out. Start at http://www2.blackrock.com/US/individual-investors/.

    David
  • Howdy David,

    Thank you for your time and efforts. AND, too hot and humid today; even for the big Maple tree with lounger;and sprinkler...:)
    I kinda miss the way back days when mutual funds were mutual funds; and one didn't need a PhD if some area of analysis to understand the machinations within a prospectus.

    Take care of you and yours,
    Catch
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