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Hi, I'm looking for some exposure to high yield corporate mutual funds or even closed end funds. I'm looking for some income. I know I missed a the recent decline and advance but I think the current move has gotten ahead of itself. I want several funds to spread out the risk and get various yields such as HYLD and FAGIX Thank you
HYLD is a beyond bad junk bond ETF and even worse it is thinly traded with wide bid/ask spreads. FAGIX is not a pure junk bond fund as they always have more exposure to equities than other junk bond funds. If you are an investor (not a trader) you should find an open end junk bond fund (no junk bond ETFs) with a *consistent* record and not look for the flavor of the day. The Morningstar junk bond database is a good place to begin your research. You have to do your own research and not invest based on the opinions of others.
Summary From an article earlier this week from Seeking Alpfa looking @ E T Fs in this space authored byFundGuru Mar. 3, 2016 8:40 AM ET
High yield bonds have performed poorly of late, despite historically delivering equity-like returns with lower volatility.
We believe the recent sell-off provides an attractive entry point for long-term investors.
E T Fs At A Glance
The high yield bond E T F space is currently dominated by four large players:
iShares iBoxx $ High Yield Corporate Bond E T F (:HYG) SPDR Barclays High Yield Bond E T F (:JNK) SPDR Barclays Short Term High Yield Bond E T F (SJNK) PIMCO 0-5 Year High Yield Corporate Bond Index E T F (:HYS)
The key distinguishing feature between the four E T Fs is their duration. The HYG and JNK are normal duration ETFs, while SJNK and HYS are shorter duration ETFs.
@Junkster said on March 1 We both started on 2/12. This may surprise you. I hold 4 junk funds - my largest is PYHRX (doesn't accumulate daily) PHYDX, EIHIX ( I said never again a fee fund but) and JAHYX (not banned there in my taxable. You will notice no MWHYX. It's action last Tuesday was enough for me. A fun ride let's hope we don't have to cut and run and oil behaves itself. @SlowLane said March 1 Flag I meant to say "Did you instigate this exodus from Treasuries to junk?"
You pick some good funds. I am in ABHIX, along with PHYDX and EIHIX.
Edit I own BGH (% of Assets*) Bond Ratings Baa 1.29 Ba 5.63 B 77.25 Caa and below 10.43 Not Rated 0.75 Cash and Accrued Income 4.65 TOTAL 100.00 Country Diversification United States 59.71 United Kingdom 16.71 Germany 3.35 France 2.94 Netherlands 2.13 TOTAL 84.84 Top Holdings Oil and Gas 13.33 Healthcare, Education and Childcare 10.48 Jan 31 2016 Fact Sheet http://www.babsoncapital.com/assets/user/media/Babson_Capital_Global_Short_Duration_High_Yield_Fund_Factsheet1.pdf
Thank you for the replies. I am an investor, not a trader. Ted, I looked at those rankings earlier. I'm hoping for leads like Shipwreckandalone provided even if one was a foreign bond fund - funds that don't show up in the normal rankings.
Summary From an article earlier this week from Seeking Alpfa looking @ E T Fs in this space authored byFundGuru Mar. 3, 2016 8:40 AM ET
High yield bonds have performed poorly of late, despite historically delivering equity-like returns with lower volatility.
We believe the recent sell-off provides an attractive entry point for long-term investors.
Recent selloff???Have performed poorly of late??? Junk bonds were in the midst of their largest rally in years when that article was published. They are now positive YTD.
I like and old FHTIX (you can find brokerages with low minimum initial investments); VWEAX and HYB. Have held many others over the years and these are the survivors.
@Junkster.Only presented the S A link as a primer for high yield options and comparisons. Here is another chart from the S A article that clearly shows your call of a bottom on February 11th.Even the much maligned FPACX is up 7.69% since then !
also @JunksterRisk-off to continue ? More for your perusal. MLPs had another ripping week as higher oil prices and E&P equity issuance attracted new capital propelling the benchmark index higher +7.21%, and a -8.72% YTD loss. Crude rose 10.2% for the week as lower production numbers were reported by EIA (table below) which seemed to trump the higher crude storage reported, along with more cooperative comments from OPEC members and Russia. The reality of lower crude production has been good news for MLP's, despite what those lower volumes may mean for some midstream assets http://mlpdata.com/mlp_newsevents/article_details?article_id=282&mbTrackingId=1
"If you are Exxon, you have to be looking around at all of the wreckage in the energy sector these days and feel like a kid in a candy store,” said Spencer Cutter, an analyst at Bloomberg Intelligence. The debt offer is a sign that Exxon may "start picking up great assets at fire-sale prices" and "take advantage of the downturn and start shopping," he said. http://www.bloomberg.com/news/articles/2016-02-29/exxon-said-to-plan-bond-offering-after-rating-downgrade-threat Oil jumps as traders close short positions, U.S. producers cut rig count http://news.yahoo.com/oil-rises-traders-close-short-positions-u-producers-015805943--finance.html http://www.tradingeconomics.com/commodities Asian shares hit two-month highs on Monday, extending sharp gains from last week, following upbeat U.S. jobs data and a rebound in oil and commodity prices. http://news.yahoo.com/asian-shares-hit-two-month-high-solid-u-004607584--business.html Add 3/07 Latest From Otter Creek L/S Fund -2.32% since Feb 11th On the Bearish Side .From OTCRX March 7th posting of Feb Fact Sheet Market Commentary We continue to be mindful of both credit growth and credit conditions. Financial conditions remain tighter than several months ago and access to the high yield market has become more challenging since last year. In addition, despite the rise in equity markets recently, the spread on the 2 year and 10 year treasuries is the lowest since 2008 which does not bode well for future credit growth. We believe these dynamics are worth monitoring closely. Equity market valuations remain relatively unattractive, in our view. We estimate the S&P 500 is trading at approximately 16x-17x earnings – modestly above its historical average – despite fairly tepid sales and earnings growth. Given the ongoing deterioration in global growth trends, we see more downside than upside to earnings near-term. We are closely monitoring the potential for consumer spending to accelerate on the back of an improved labor market, better wage growth and low gas prices. A potential acceleration in consumer spending coupled with a further stabilization in the dollar and commodities could help drive improved earnings growth later in the year. Our long portfolio is structured around owning high quality companies benefiting from secular tailwinds, idiosyncratic ideas that should perform well regardless of the market environment, and special situations. Our short portfolio is structured to take advantage of companies overearning due to ultra-low interest rates and companies with a high likelihood of missing sales forecasts due to a weaker macro environment. As we enter March, we have approximately 20% of the Fund in cash. Considering the rise in equity markets over the past several weeks and the collapse in volatility, we have taken the opportunity to add to our highest conviction ideas by adding both common stock shorts and out of the money puts http://www.ottercreekfunds.com/media/pdfs/OCL_Factsheet.pdf
My high yield pick is PHYZX - low expenses of .58, seasoned management, and rated 5 stars by M*.
Among the better junk bond funds and wondered why it has never been on a my radar screen. Now I remember. At Scottrade where I trade it is only available to clients of registered investment advisers only. Maybe not so at other firms. Thanks for the heads up to the forum on a consistently good junk bond fund.
TSP_Transfer Appreciate your posts and keep em coming. But you know me, I never act on what I read but price and only price. But nonetheless I still read all I can on the markets if for any reason to see if there is becoming a consensus. The experts are almost wrong when there is a universal consensus are where particular markets are heading and often times I factor that into price action. Obviously the consensus is still that there is another shoe to drop in that bond category. Jeffrey Gundlach (who many follow blindly because he is an expert and manages billions) was still predicting a collapse in the junk bond market in early February just a few days before it took off on its biggest rally in years. The jury is still out on that call.
Actually before I get grief about it, the Jeffrey Gundlach DoubleLine bond funds mentioned (DBLTX and DLTNX have been among the best of the best over the past 1, 3, and 5 years. And obviously had you *blindly* put your money in the trust of DoubleLine you would be sitting pretty in that bond category if a diversified portfolio is your thing. I am as eager as anyone to hear Mr. Gundlach's views on 3/8 if only to see how the markets react.
Just to clarify AWF is a global fund in which 70% is invested in the USA. DSL has 40% foreign debt. Both of them reached near 15% discounts during the oil panic.
Comments
Regards,
Ted
High Yield Mutual Funds:
http://money.usnews.com/funds/mutual-funds/rankings/high-yield-bond
ETF High Yield Funds:
http://money.usnews.com/funds/etfs/rankings/high-yield-bond
CEF High Yield Funds:(Under Classification Scroll & Click High-Yield)
http://www.cefa.com/FundSelector/AdvancedSearch.fs#SearchResults
http://news.morningstar.com/fund-category-returns/high-yield-bond/$FOCA$HY.aspx
authored byFundGuru Mar. 3, 2016 8:40 AM ET
High yield bonds have performed poorly of late, despite historically delivering equity-like returns with lower volatility.
We believe the recent sell-off provides an attractive entry point for long-term investors.
E T Fs At A Glance
The high yield bond E T F space is currently dominated by four large players:
iShares iBoxx $ High Yield Corporate Bond E T F (:HYG)
SPDR Barclays High Yield Bond E T F (:JNK)
SPDR Barclays Short Term High Yield Bond E T F (SJNK)
PIMCO 0-5 Year High Yield Corporate Bond Index E T F (:HYS)
The key distinguishing feature between the four E T Fs is their duration. The HYG and JNK are normal duration ETFs, while SJNK and HYS are shorter duration ETFs.
http://seekingalpha.com/article/3950906-buy-hyg-high-yielding-lower-risk-equities
@Junkster said on March 1
We both started on 2/12. This may surprise you. I hold 4 junk funds - my largest is PYHRX (doesn't accumulate daily) PHYDX, EIHIX ( I said never again a fee fund but) and JAHYX (not banned there in my taxable. You will notice no MWHYX. It's action last Tuesday was enough for me. A fun ride let's hope we don't have to cut and run and oil behaves itself.
@SlowLane said
March 1 Flag
I meant to say "Did you instigate this exodus from Treasuries to junk?"
You pick some good funds. I am in ABHIX, along with PHYDX and EIHIX.
http://www.mutualfundobserver.com/discuss/discussion/comment/75775/#Comment_75775
Edit
I own BGH
(% of Assets*)
Bond Ratings
Baa 1.29
Ba 5.63
B 77.25
Caa and below 10.43
Not Rated 0.75
Cash and Accrued Income 4.65
TOTAL 100.00
Country Diversification
United States 59.71
United Kingdom 16.71
Germany 3.35
France 2.94
Netherlands 2.13
TOTAL 84.84
Top Holdings
Oil and Gas 13.33
Healthcare, Education and Childcare 10.48
Jan 31 2016 Fact Sheet
http://www.babsoncapital.com/assets/user/media/Babson_Capital_Global_Short_Duration_High_Yield_Fund_Factsheet1.pdf
authored byFundGuru Mar. 3, 2016 8:40 AM ET
High yield bonds have performed poorly of late, despite historically delivering equity-like returns with lower volatility.
We believe the recent sell-off provides an attractive entry point for long-term investors.
Recent selloff??? Have performed poorly of late??? Junk bonds were in the midst of their largest rally in years when that article was published. They are now positive YTD.
Here is another chart from the S A article that clearly shows your call of a bottom on February 11th.Even the much maligned FPACX is up 7.69% since then !
also @Junkster Risk-off to continue ? More for your perusal.
MLPs had another ripping week as higher oil prices and E&P equity issuance attracted new capital propelling the benchmark index higher +7.21%, and a -8.72% YTD loss. Crude rose 10.2% for the week as lower production numbers were reported by EIA (table below) which seemed to trump the higher crude storage reported, along with more cooperative comments from OPEC members and Russia. The reality of lower crude production has been good news for MLP's, despite what those lower volumes may mean for some midstream assets
http://mlpdata.com/mlp_newsevents/article_details?article_id=282&mbTrackingId=1
"If you are Exxon, you have to be looking around at all of the wreckage in the energy sector these days and feel like a kid in a candy store,” said Spencer Cutter, an analyst at Bloomberg Intelligence. The debt offer is a sign that Exxon may "start picking up great assets at fire-sale prices" and "take advantage of the downturn and start shopping," he said.
http://www.bloomberg.com/news/articles/2016-02-29/exxon-said-to-plan-bond-offering-after-rating-downgrade-threat
Oil jumps as traders close short positions, U.S. producers cut rig count
http://news.yahoo.com/oil-rises-traders-close-short-positions-u-producers-015805943--finance.html
http://www.tradingeconomics.com/commodities
Asian shares hit two-month highs on Monday, extending sharp gains from last week, following upbeat U.S. jobs data and a rebound in oil and commodity prices.
http://news.yahoo.com/asian-shares-hit-two-month-high-solid-u-004607584--business.html
Add 3/07 Latest From Otter Creek L/S Fund -2.32% since Feb 11th
On the Bearish Side .From OTCRX March 7th posting of Feb Fact Sheet
Market Commentary
We continue to be mindful of both credit growth and credit conditions. Financial conditions remain tighter than several months ago and access to the high yield
market has become more challenging since last year. In addition, despite the rise in equity markets recently, the spread on the 2 year and 10 year treasuries is
the lowest since 2008 which does not bode well for future credit growth. We believe these dynamics are worth monitoring closely.
Equity market valuations remain relatively unattractive, in our view. We estimate the S&P 500 is trading at approximately 16x-17x earnings – modestly above its
historical average – despite fairly tepid sales and earnings growth. Given the ongoing deterioration in global growth trends, we see more downside than upside
to earnings near-term. We are closely monitoring the potential for consumer spending to accelerate on the back of an improved labor market, better wage
growth and low gas prices. A potential acceleration in consumer spending coupled with a further stabilization in the dollar and commodities could help drive
improved earnings growth later in the year.
Our long portfolio is structured around owning high quality companies benefiting from secular tailwinds, idiosyncratic ideas that should perform well regardless of
the market environment, and special situations. Our short portfolio is structured to take advantage of companies overearning due to ultra-low interest rates and
companies with a high likelihood of missing sales forecasts due to a weaker macro environment.
As we enter March, we have approximately 20% of the Fund in cash. Considering the rise in equity markets over the past several weeks and the collapse in
volatility, we have taken the opportunity to add to our highest conviction ideas by adding both common stock shorts and out of the money puts
http://www.ottercreekfunds.com/media/pdfs/OCL_Factsheet.pdf
TSP_Transfer Appreciate your posts and keep em coming. But you know me, I never act on what I read but price and only price. But nonetheless I still read all I can on the markets if for any reason to see if there is becoming a consensus. The experts are almost wrong when there is a universal consensus are where particular markets are heading and often times I factor that into price action. Obviously the consensus is still that there is another shoe to drop in that bond category. Jeffrey Gundlach (who many follow blindly because he is an expert and manages billions) was still predicting a collapse in the junk bond market in early February just a few days before it took off on its biggest rally in years. The jury is still out on that call.
Jeffrey Gundlach (who many follow blindly because he is an expert and manages billions)
http://www.mutualfundobserver.com/discuss/discussion/26347/another-open-mic-for-doubleline-s-jeffery-gundach-connect-the-dots-3-8-2016-webcast
Thanks also @rabockma @Junkster
Schwab
Symbol
PHYZX (Minimum: $100.00)
PHYZX - Prudential High Yield Fund Cl Z As of 03/04/2016
NAV: 5.06 +0.03
POP: 0.00
52 Week High: 5.63
52 Week Low: 4.78
Trans. Fee Fund: No
Sales Load: None
as is ETHIX @ Schwab (Minimum: $100.00)
Jeffrey Gundlach (who many follow blindly because he is an expert and manages billions)
http://www.mutualfundobserver.com/discuss/discussion/26347/another-open-mic-for-doubleline-s-jeffery-gundach-connect-the-dots-3-8-2016-webcast
Actually before I get grief about it, the Jeffrey Gundlach DoubleLine bond funds mentioned (DBLTX and DLTNX have been among the best of the best over the past 1, 3, and 5 years. And obviously had you *blindly* put your money in the trust of DoubleLine you would be sitting pretty in that bond category if a diversified portfolio is your thing. I am as eager as anyone to hear Mr. Gundlach's views on 3/8 if only to see how the markets react.