Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
hi Junkster. Muni bonds are not necessarily predicting the whole credit market performance. They are unique in the sense that they were subject to panic selling late in 2010 - early 2011 when their tax exempt yields produced 120% of the equivalent…
nothing unusual here either beside some tax-related moves. continue to massage my 20% credit bucket by replacing and/or rebalancing some of the line items. but that's not dependent on the calendar.
Reply to @MoneyGrubber: with PTTRX you get active management of a very sceptical mind. They will jump more to credit, short duration or EM debt if warranted. Do not worry, really. Also, if you are adding via your 401K allocation, you will be buyi…
your distribution for the total amount of shares you held at yesterday's close will be reinvested at today's NAV. there is really no impact on your holding except if it is in a taxable account, you'll have to pay tax on the full amount of the distr…
"transfer in-kind" from your current account should not cause the $75 fee. Purchasing additional shares might cost $5, which is nothing unless you're dealing with tiny amounts. Reinvest the dividends and capital gains which is also free and leads …
Reply to @MoneyGrubber: if you're comfortable with your market timing abilities, then of course. However, many people argued that the rates can go only up from here in 2009, 2010, 2011 and 2012. i saw people get clobbered investing in TBT. The sp…
Reply to @catch22: i think, catch, that a lot of bond funds, PONDX included, accrue income on a daily basis and it is part of their daily NAV while it is paid monthly. For example if you sell PONDX before the record day (usually month-end), you wil…
1. your calculations are correct. and your assumption is correct. maximum tax rate on qualified dividends is 15% in 2012. (scheduled to expire dec 31st and move to ordinary tax rates if no deal passes.)
2. "qualified dividends" is different from "c…
Reply to @claimui: yes, vanguard has been on a very concervative side. during a market rout it will hold better. but since there is no free lunch, its yields are lower.
Reply to @bee: i am not stating 'stay short duration'. what i am saying -- know what you own and what the risks are. each porfolio needs some equity risk (US and non-US), some interest rate risk, and some credit risk -- diversify your risk sources.…
"if I buy a US Treasury Bond Index fund...", the fund is marked to market every day and you and other investors can redeem at each day's NAV, which means you can loose a small (or large) fortune should interest rates rise. If a fund is called somet…
Reply to @David_Snowball: Agree. and thank you for instroducing the fund to the board. this is my cash equivalent yielding much more than cash. Very fitting for the emergency stash.
Reply to @AndyJ: you're right about the cash driving down the yield, but it is also a function of capital appreciation. if you buy a fund investing in bonds paying (i am simplifying here) fixed coupons at inception, let's say $100 monthly, and the …
Reply to @AndyJ: they are not slowing down because of cash flows but rather because of valuations. bonds are not stocks and can't go up forever but to par value of $100. if a manager started buying those at 60c on a dollar and they went to 80c, th…
Reply to @ron: i am going to get crucified for this, but what's wrong with derivatives or a bit of leverage in an environment when leverage and financing don't cost much (except Dodd-Frank reporting)? It is often the most efficient way of trading f…
Reply to @ron: PIMCO just produced semiannual report for PDI (equivalent of PONDX) where they speak of performance contributors and detractors. Contributors are mostly non-agency MBS, financial and insurance companies' bonds, etc.... and the fact t…
Reply to @Hiyield007: just WOW... good for you and your family... my mom is taking more pills daily than normal food i think. and she is the oldest surviving sibling of four @ 74yo with two gone by 61. Genetics are not in my favor, but i do what i…
Reply to @Investor: i am with you, Investor, but we had a long discussion a few months back, and some people are just not comfortable with brokerages.. unfortunately, the price is high, especially in tax inefficiencies.
look for funds that invest in non-agency (private) mortgage bonds: PMZDX from Pimco or closed-end funds from Nuveen such as JMT and JLS. Alternatively, there are 'go anywhere' bond funds that currently hold 60-70% of such securities: PONDX, PDI an…
Reply to @bee: don't forget PDI which, amaizingly, is still trading at a discount. Dan Ivascyn (not David Ivaseyn, dear Ted) has been buying his own fund.
Reply to @Investor: i think Max is dealing directly with the fund companies... this way if his IRA is with Matthewss Asia, it would make it impossible to do what you suggest (and what all of us are doing in our brokerage accounts).
Reply to @hawkmountain: i had a very good run with JJA. no reportable income unless IRS rules something else which they haven't (just cap gains). i took a profit when it moved above $66 just because i don't believe in miracles. once it goes into l…
Reply to @Charles: Cliff Asness is the opposite of the stock picker. "Stock picker" term is usually reserved for fundamental investors, not the quants.
naming convention police. :)
Reply to @Investor: nope. pure tax-related decisions. taking long-term gains this year is almost done. much of re-investment is on hold until clarity in further tax developments.
Reply to @Derf: the best response would be the link Scott attached. JG is positioning the fund for the ultimate inflation but only invests in assets that are currently cheap -- hence a lot of cash. Just like with any active fund, you need to trust…
umm. i sold and reinvested some, but mostly went to cash... i don't know where to reinvest in a taxable account, so cash is my only choice until things clear up. munis? could become taxable. dividends? not so much... i have more to sell by dec 31st.…
dear alpha... for children ages 1-12 to hold? i would go with at least 80% equity. the cheapest kind. something like vanguard total market. i like many funds offered, but they are for us -- those well over 40 and those near or at retirement age. …
Carl Levin seems to be on a personal crusade to kill mutual funds investing in commodities. I am not sure about his motives.. leaving commodities investments to 'sophisticated investors and actual commodity producers'? stop increase in commodities' …
Reply to @bee: Some of them already trade at zero or negative spread to treasuries (hi quality companies). i would not count on capital gains here. the asset class will be lucky to collect its interest payments. it will go straight down with incre…
by looking at cefconnect.com, i can see right away that over 50% of this fund's quarterly distribution is a return of capital. this would make it a no go for me right away. also, the history of the fund is very short. I am sure there are other gl…
Reply to @Hiyield007: they filed a 4a - amendment - the next day to correct to a purchase. he owns over$5mil of this stuff now, and that's a fairly new fund.
Reply to @Old_Joe: because lower quality companies have better chance of surviving, growing and paying their debt when the economy is good? c'mon OJ. hence there is about 70% correlation to equities. when the economy is bad, and treasuries are doi…
Reply to @Investor: "Some products such as closed-end funds". May i correct to "some closed-end funds"? There are many CEFs whose total return beat their open end competitors -- mostly due to the negligeble cost of leverage in the last 4 years...…
