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Short Term Bonds and/or Short Duration High Yield

Following on the informative and educational thread 'Long time owner of MWTRX'...

Looking to diversify into a few other areas of Fixed Income. A few of the funds I've looked at - ASDVX, SDMAX, FATRX, HYSAX, JSDHX to name a few...I realize the PGIM Global Multi Sector and Am Century funds are comparable but the HYSAX is a different vehicle as a Short duration High Yield fund. I'm looking for some ideas and also comments on what you folks use.

It's difficult to find US vs International % exposure on M* but I've been focusing on maturity, duration, diversification among fixed income, Int'l/US exposure 3& 5 year return...not the top returning product or riskiest either.


  • I use RPHYX and FPFIX for short-term bonds. Not expecting much at all - maybe 1.5% to 2% annual returns in the current interest rate environment. Better than nothing, but not by much.

    I balance these steady funds with higher risk (but low duration) vehicles RCTRX and JSVIX.

    Recently sold all of my MWFSX.
  • It's difficult to find US vs International % exposure on M*
    (substitute your favorite ticker for other funds)

    One does need to be careful with definitions, though. Apparently M* thinks that Macau is not part of China, and on the domestic front, that Puerto Rico is not part of the United States.

    % Bonds Category Avg
    United States 84.79 86.17
    Canada 6.18 3.44
    France 2.15 1.33
    Zambia 1.83 0.23
    United Kingdom 1.61 1.85
    Jamaica 1.14 0.19
    Germany 0.76 0.67
    Macao 0.42 0.25
    Ireland 0.36 0.58
    Puerto Rico 0.34 0.20
  • Both HK and Macau would like to think they're not part of China. We visited a relative in Macau in late 2018. We were waiting at a bus stop, and he pointed and said: "See? Just across the water there. That's CHINA! My understanding is that Macau has its own currency, just as HK has the HK dollar. But nobody else wants to deal with that Macau currency. HK dollar is readily exchangeable.
  • FWIW, in my withdrawal account, which I haven't had to use yet, I hold RPHYX as the cornerstone, about 35% of the account, but other short/ultra-short deration ETFs I use are JPST, FLRN and MINT.
  • The separate currency is a point in favor of viewing Macau bonds as different from Chinese bonds. (Puerto Rico's bonds are a different story.) On the other hand, Macau's government seems substantially subservient to mainland China, raising doubts about true economic independence.

    Both HK and Macau would like to think they're not part of China.

    Life is rarely that simple.
    [Macau's] Special Administrative Region ... uses the same political model as Hong Kong - "one country, two systems". ... But this is where the similarity between Hong Kong and Macau ends.
    Hong Kong is now into its sixth month of protests [Dec 2019], but Macau has mainly remained silent.

    "This dissent does not exist in Macau," Jason Chao, an activist and former president of the New Macau Association, a pro-democracy party, tells the BBC.

    "A major difference between Hong Kong and Macau is a wish for autonomy. Hong Kong people need autonomy, freedom and rights and they are fighting for it. This does not apply to Macau. The majority of the population are pro-China."

    Compare and contrast w/Taiwan:
    Macau said Wednesday it was closing its representative office in Taiwan, following neighbouring Hong Kong which made the same move last month in protest at Taipei's support for pro-democracy activists.
    Hong Kong and Macau abide by authoritarian China's view that democratic, self-ruled Taiwan is part of its territory and must be seized one day, by force if necessary.
    Beijing loathes [Taiwan's President Tsai Ing-wen] because she regards Taiwan as a de facto sovereign nation and not part of "one China".
    Agence France-Presse (AFP), June 16, 2021
  • MSF ...thanks for the link! I was using M* X-Ray but I'll have to find that withing there.
  • OSTIX, Osterweis Strategic Income (TF at most brokerage houses)…..or ZEOIX, Zeo Short Duration Income (also TF). Also RiverPark has RSIVX…somewhat longer duration than RPHYX, but performing relatively well this year it seems.

    Honestly, if you’re ok with courting risk, IOFIX is as steady as they come (the once-in-a-decade, plus, COVID crash notwithstanding….). 4-5% yield and it generally goes up or stays flat most days. I know it’s not high yield! Don’t kill me for suggesting it haha.
  • I prefer VNLA in the short duration space, though having a poor year. That being said, my general thinking is why take any risk when you can get 1% in an online account? T-Mobile money (through customers bank) is offering 1% right now, FYI.
  • HIX is one I started this week. Low cost and I like the Western Asset I have owned a long time.
  • HIX is an interesting choice. I was contemplating BGH myself.
  • edited October 2021
    Graust said:

    . Also RiverPark has RSIVX…somewhat longer duration than RPHYX, but performing relatively well this year it seems.

    Honestly, if you’re ok with courting risk, IOFIX is as steady as they come ....

    RSIVX is doing great this year; hadn't thought about it in a long, long time. It's been a dog for most of its life, but must be doing something right this year. Will look into it.

    Agree on IOFIX too. Several other securitized OEFs have fallen off the pace lately, but it's keeping on keeping on.

    JD's RCTRX suggestion looks pretty good in securitized, too - never heard of it till this thread.
  • Agree AndyJ...great idea sharing as always!!1 It's just great to get different perspectives and research products you never looked at before.
  • edited October 2021
    After LOTS of screening and test driving in these areas:

    Own ST/ST HY: LALDX (thanks to another poster, and that also lead me to research and own MS LBNDX) and RPHYX, both provide consistently boring, consistently positive TRs for monies awaiting a better home. IMO, these are two of, if not the very best for the job I assigned them: inch forward and don't lose me any money. RPHYX of course now closed.

    Likely the next to be added to that group with similar pedigree: PFIIX/PFIAX.

    Also own HY: BGHIX (owned it a while as DHHIX), VWEHX and FAGIX.

    Others in ST/ST HY cat's that may come aboard: IOFIX, BUHFX, TUHYX, RCTIX.
  • RPHYX of course now closed.

    Here's the August 24, 2021 supplement to the fund prospectus:
    August 27, 2021 (the "Revised Closing Date") ...

    After the Revised Closing Date, the following eligible investors may also open new accounts:

    · New shareholders may open Fund accounts and purchase shares directly from the Fund (i.e. not through a financial intermediary).

    · Any trustee of RiverPark Funds Trust, or employee of RiverPark Advisors, LLC or Cohanzick Management, LLC, or an investor who is an immediate family member of any of these individuals.
  • edited October 2021
    Terminology becomes a confusing issue in these kind of threads. "Short Term Bonds" is a category of M* and permeates search functions at various brokerage houses for competing funds in that category. Short Duration/Limited Duration is often a descriptive term, in titles of various funds, and can often apply to almost any category in which duration is being emphasized. Even the term High Yield can be confusing, often describing credit status references of junk bonds, but occasionally describing the amount of yield within any category of funds. In my cash alternative account, used as an alternative to bank accounts, I often use DHEAX (from the M* category of short term bonds), but it is predominantly a securitized asset fund that is very risky for the category, but I relate to it more as a nontraditional bond oef, with short duration. I often use RPHIX/RPHYX, which M* categorizes as a High Yield bond fund, but with very short duration--one of the least volatile and smooth performing funds I own and I consider it a good alternative to the category of Short Term Bond funds which generally offers too little yield with higher investment grade bonds. (RPHIX/RPHYX has restricted/limited access) Another fund I often use for alternatives for bank accounts, is FPFIX, a short duration low risk from the nontraditional category. I prefer FPFIX over its more well known cousin, FPNIX, which is a very good and low risk short term bond category fund. (note FPNIX is in a limited access status).

    With all of that said, I also use a lot of short duration bond oefs in my more risky IRA holdings, that mostly have junkier credit ratings, but often in more of a "trade" role. In 2021 I have use IOFIX, SEMMX, several FL/BR funds, etc. which often provides higher yield and higher total return. In the multisector bond category, even venerable funds like PIMIX are very short duration, along with it's PIMCO relative PEGIX. At any rate, terminology can often be confusing, so the OP may want to more specifically define what he is looking for, and what role he wants those funds to fill in his portfolio.

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