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May be not yet. Just move to near the exit. The guy from JPM (Mark K) has not flipped yet. If he thinks he will lose his job if he goes against Dimon's pronouncements, and he may never flip.
I added to NAD and EVT in my taxable account...adding about 5% to each. Given their FI holdings, they will likely bump up when rates eventually recede along with 4.63% and 7.49% distribution respectively. In my IRA rollover I cashed out of RPMGX. 20 years ago I jumped through hoops to maintain this fund as I changed employer plans. I sold in order to gain additional fixed income exposure, currently sitting in SNVXX. I'm waiting for a pullback and then will initiate a new position in most likely an allocation fund...FMSDX and FPURX are in the mix at present.
Even though I’ve transitioned most of our short and intermediate bond index funds to individual t-bills, notes, and tips, I’ve still been DCAing into OSTIX and RSIIX.
TS is VOLATILE lately. (ADR.) Today, 22 May, is dividend payday. Jayzuz, the stock has been whip-sawing for days. I'm not buying. My cost basis is crazy-low compared to more recent share price. It's brutal lately, the ups and downs. I've seen a $40 handle on a 12-month target-price. Down to $33.68 at the moment.
Will BCE prove to be contrarian? It's up, while all else is down, today.
Reestablished position in NSRGY / 25 shares @ 101.91 This thing is either deep value or a head-fake. Even received a “buy” wreck rec in Barron’s this week.
For preferreds on this site, you would use “CMS-C”
This site gives initial terms of preferred, ex-date/payment date, and any updates if the issuing company gets bought out (or it switches to a floating rate, etc.).
Is this convertible? I suppose not, given the 6% stated Div. Is it uncommon among utilities to issue convertibles?
You're probably looking at the note (CMSC) that pays interest. I own the 'traditional' preferred stock (CMS-C) that pays QDI... odd they have such similar tickers!
@BaluBalu - I’ve dipped my toe in a callable indy agency bond last December, but still unsure of my footing. Vanguard doesn’t offer new agency bonds so I have to buy on the secondary market, which hurts my head trying to decipher the data prior to purchase. Also, the non-callable agencies don’t offer a significantly higher yield/coupon to treasuries now. So I’m staying in the treasury auction ballpark.
All good. I only buy new issue Agencies, which are available at Fidelity. Yes, Vanguard does not offer those. I do not buy secondaries in Agencies because I get enough entertainment from equities, not to mention the transaction fees for secondaries. I try my fixed income to be as boring as possible, unless home runs are available on rare occasions. I try to strike a balance by not buying anything that can be called in six months (also, I try not to buy continuously callable) - a matter of time allocation. My prior batch all got called. I restarted buying.
If the Agencies are AAA with similar terms, we should not expect a lot of spread over Treasuries. (Some States may exempt interest from some Agencies. I can shoot for 15% QDI Fed tax rate + 10% state tax or 25% Fed rate + 0% State rate. I just assume efficient market in evaluating all alternatives and pick the ones that best suit for my portfolio at any particular time.)
Sold SCHD out of the taxable today. Realized a tax loss of about $7.50 after several purchases since November 2021. Yippee yai kai yea, get along little doggies.
The money will be reinvested in FDVV. The D/E ratio for SCHD is 3.36 and 1.50 for FDVV.
The taxable has been slightly under-invested by my lights, so I will be starting a position in SPHQ, and buffing up some other positions. The D/E ratio for SPHQ is .83.
@BaluBalu, I have been looking for non-callable agency bonds at Fidelity. Have no luck so far. Secondary offerings are what I found. Please share your experience.
Selling (recent weeks): utility and commodity funds.
Buying: 6 and 12 months T bills and this week’s 2 year T note as part of rebuilding the ladder. Extending the duration now will alleviate the 6 month T bill reinvestment risk down the road.
Also adding to hedging for equity: LCR and FMIJX/ARTKX (better valuation than US stocks).
Placed an order for 2-yr t-notes in both IRAs. Considered 5 & 7-yr, but will wait till June since rates have slowly been rising, and will try not to kick myself if/when the rates drop.
Same here- going to move another 10% of Schwab SUTXX MMKT into 2 or 3 yr Treasuries- looking to get income spread to 50% MMKT / 50% fixed, out to 2028.
Watch the middle part of yield curve moving up in recent week tells a different story about the bond market. I move part of intermediate investment grade bond funds back to T notes. I much prefer treasuries over CDs in taxable accounts on their after tax-return.
@Sven, I do not recall seeing new issue non-callable Agencies in the past two years. I suspect, if they exist, the spreads over comparable Treasuries would be miniscule (10-20 bps) and may not be worth chasing such Agencies, especially because of their lower liquidity and transaction cost to sell - not to mention the potential to get caught in the DC political football.
So, what I am doing is banking on the callable Agencies offering higher yield at least through the first call date and any extension is gravy but with the risk that rates might go up and at some point I might end up owning an agency that yields less than a comparable Treasury. I am assuming the probability of that risk is low relative to the extra yield I am picking up.
Thanks for the auction schedule. I do not see an auction for 1 yr or later Treasuries until June 10.
@BaluBalu, thanks for sharing your experience on agency bonds. I will stay with Tbills and notes for now.
One year T note auction occurs once a month while 2 yr and longer ones are less frequent. The 2-yr Treasury auction is still open today and will execute tomorrow since stock market is close today. The schedule helps one to build a longer ladder beyond 6 months, so to avoid of not able to get equivalent (or higher) yield when the short duration treasury matures.
Comments
t-bills, notes, and tips, I’ve still been DCAing into OSTIX and RSIIX.
Will BCE prove to be contrarian? It's up, while all else is down, today.
wreckrec in Barron’s this week.For preferreds on this site, you would use “CMS-C”
This site gives initial terms of preferred, ex-date/payment date, and any updates if the issuing company gets bought out (or it switches to a floating rate, etc.).
@Level5,
All good. I only buy new issue Agencies, which are available at Fidelity. Yes, Vanguard does not offer those. I do not buy secondaries in Agencies because I get enough entertainment from equities, not to mention the transaction fees for secondaries. I try my fixed income to be as boring as possible, unless home runs are available on rare occasions. I try to strike a balance by not buying anything that can be called in six months (also, I try not to buy continuously callable) - a matter of time allocation. My prior batch all got called. I restarted buying.
If the Agencies are AAA with similar terms, we should not expect a lot of spread over Treasuries. (Some States may exempt interest from some Agencies. I can shoot for 15% QDI Fed tax rate + 10% state tax or 25% Fed rate + 0% State rate. I just assume efficient market in evaluating all alternatives and pick the ones that best suit for my portfolio at any particular time.)
The money will be reinvested in FDVV. The D/E ratio for SCHD is 3.36 and 1.50 for FDVV.
The taxable has been slightly under-invested by my lights, so I will be starting a position in SPHQ, and buffing up some other positions. The D/E ratio for SPHQ is .83.
Yes, there is a theme here.
Selling today. Shopping next week.
Addendum: I think it’s Debt/Equity
Then there was one about EV, and I thought to myself "Exit velocity? Electric vehicles?"
You and Crash are right, it's debt/equity. I want less of it.
Selling (recent weeks): utility and commodity funds.
Buying: 6 and 12 months T bills and this week’s 2 year T note as part of rebuilding the ladder. Extending the duration now will alleviate the 6 month T bill reinvestment risk down the road.
Also adding to hedging for equity: LCR and FMIJX/ARTKX (better valuation than US stocks).
Here is the schedule for Tbills and notes for this year. Enjoy.
https://home.treasury.gov/system/files/221/Tentative-Auction-Schedule.pdf
So, what I am doing is banking on the callable Agencies offering higher yield at least through the first call date and any extension is gravy but with the risk that rates might go up and at some point I might end up owning an agency that yields less than a comparable Treasury. I am assuming the probability of that risk is low relative to the extra yield I am picking up.
Thanks for the auction schedule. I do not see an auction for 1 yr or later Treasuries until June 10.
One year T note auction occurs once a month while 2 yr and longer ones are less frequent. The 2-yr Treasury auction is still open today and will execute tomorrow since stock market is close today. The schedule helps one to build a longer ladder beyond 6 months, so to avoid of not able to get equivalent (or higher) yield when the short duration treasury matures.