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.
You might want to monitor other types of "trolling" on other MFO threads. There are several examples of this on other threads, where there are some very inflammatory use of derogatory statements and name calling. Those threads quickly deteriorate …
You two really deserve each other.
The animosity between Stillers and FD is very longstanding, but the original post on this thread, directed to FD specifically, was not worded in a very inviting or constructive tone. I am a bit surprised FD replie…
When analyzing bond oefs, I would suggest you become very aware of their derivative holdings, especially when pushing PIMCO funds. PIMIX holds 11+% in derivatives, along with long term treasuries. Those large negative "Other" categories are not in…
I have read so many opinions and projections about the interest rate environment and inflation. I am encouraged that there are signs that inflation might be slowing, which was the goal of aggressive interest rate hikes. On the other hand the Fed r…
I have depended on M* for many years, as part of my bond oef investing experience. I took full advantage of the analytical data associated with bond oefs. I have built a pretty effective "watchlist" system at M*, focusing on "bond category" listi…
Hey Fred, how far out are you going with your CD selections?
Max. of two years, dt, and only from large national banks (i.e., "too big to fail"). During that period I expect there to be a stock market correction and, perhaps, some additional oppo…
As a retired and conservative investor, and as long as the Fed keeps raising interest rates, I am staying in risk-free MM's and CD's. In the future, I might be looking at bond OEF's like CBLDX, RCTIX and TSIIX, for example.
But, in the meantime, I …
https://www.reuters.com/markets/rates-bonds/fed-seen-raising-rates-this-month-traders-less-sure-further-hike-2023-07-07/
At least one reputable news source thinks that it is almost certain the Feds will raise rates in July, but less certain about a…
@dtconroe, @Old_Joe, in your guys opinions, how much more risky is a corporate bond issued from a bank with a A+ rating? Without a lot of experience it sounds pretty safe to me. Schwab shows the Bank of Montreal giving 6% on a 2 year bond. Yes, call…
@dtconroe- Hey, thanks much for your follow-up. I'll be watching closely to see if the Fed does in fact raise rates again soon... if they do, that might up the rates a bit.
OJ
Projecting what the FEDs will do next, is a complex aspect of CD investi…
I use Stock Rover too, and it's helpful. But not much for FUNDS. :)
That is my concern as well! I will attempt to manipulate my brokerage available data, but so far, it is far less detailed than what has previously been offered by M*.
@dtconroe- Could you advise time to maturity on those? Can't find anything on Schwab better than 5% going out to 2025.
Thanks- OJ
I just checked CD rates at Schwab. They do offer a 18 month CD, that matures in January 2025, that pays 5.2%. It is …
Old_Joe, 2 of them were 6 month CDs, and 1 of them was a 9 month CD. CDs maturing in 2025 were paying less than 5.3%. If the FEDs do raise rates 2 more times this year, there may be an opportunity to pick up longer term CDs with a little higher ra…
I chose to reinvest CD money, from recent maturing CDs, into several new CDs. I was able to purchase several new CDs for 5.3% rates. That may become more challenging in the future, if the FEDs do not choose to raise rates at their next meeting.
Anyone think to recall that students are all chasing summer jobs????? Anyhow, when every kind of anything gets counted, it's no wonder there's consternation all around. A full-time breadwinner is way different that a 3-month summer thing...
Crash, a…
I have been out of bond oefs since 2022, but maintain watchlists of various bond categories. Just a few observations I have had is the overall 2023 performance strength of FR/BL funds. If I should decide to transfer some of my CD money back to bo…
OldJoe:"Absolutely. Lots of stuff to choose from- whatever works best for you. At 84, with wife not into financial stuff, I'm keeping it simple. Just trying to maintain a little income to offset inflation (at least partially). About half in CDs/Trea…
Again, where exactly does WABAC say that he sold them before they matured?
@WABAC- perhaps you could clarify this?
Thanks- OJ
Old Joe, my interpretation of the post by WABAC, was that he still owns his CDs, doesn't like the experience, and he is "…
Looking forward to getting money out of short-term CD's. I tried it. Didn't like it. Will stick to money markets and floating rate T-Bills.
I fully understand. Brokerage CDs are pretty illiquid options, that will often lose significant amounts of m…
I bought a 6 month CD today from Wells Fargo, that pays 5.3%. I do still have some money remaining from the recent CDs that matured, and have 2 additional CDs maturing in a few weeks, but I have not made a decision what I will do with those monies…
@dt. I have been been overweight CD’s since early 22 as well. I have become very comfortable with a risk free 5% and find that it suits me well. I am torn between going out as far as I can and still be real close to 5% or slowly returning to a mor…
Not a fan of Rekenthaler. With 401, 403, 457, it is just another employer option of a variety of mutual funds, some risky and some less risky. When I retired, I transferred all of my 401, 403, 457 holdings into a rollover IRA, so they would be co…
Junkster: "My suggestion and what I do depending on the environment is trade hybrid junk bond funds. Meaning they have a 20% to 30%+ allotment to bank loans with the rest in junk corporates. It tampers down the volatility a bit. Being the superstiti…
The subject of this thread is specifically focused on Floating Rate/Bank Loan funds, in varying kinds of interest rate environments. The thread was started by Junkster, a very well known trader. Several other posters commented, with a variety of i…
Below are 3 posts about FR/BL, that I made on another MFO thread last week:
"I would just note that Floating Rate/Bank Loan category of bond funds, has been doing pretty well this calendar year. I continue to maintain a watchlist of about a dozen f…
As I said earlier, I have a watchlist of about a dozen BL/FR funds. Everyone of them are positive for 1 week, 1 month, 3 month, and YTD. "If" I choose to put some money to work in this category, I would consider some of the lower risk options (a…
Yogi: "FR/BL are great for rising rates. But when rates are steady or declining, they act just like risky short-term HY (FR/BL are low-rated). That party is/maybe ending soon too."
There is always a risk/reward decision to be made in investing in b…
@Sven, @Observant1, Sara DEVEREUX has a feature in the current Barron's. From my Summary, Part 2 (some excerpts also posted earlier by @Observant1),
Sara DEVEREUX, Vanguard Fixed-Income Head. She joined Vanguard in 2019 from Goldman Sachs/GS. After…
@FD1000,
You began a 90 day "sabbatical" from the BIG BANG! Investors forum less than 12 hours ago.
I'm shocked (shocked!) since I thought you would temporarily refrain from posting while on sabbatical.
Then again, you must heed the urgent need to …
Lots of negativity on bonds here. I can understand the allure of cash when you can get 5.08% at firms like Schwab. Yet many bond funds are on pace for double digit returns in 2023. Albeit much of those gains were front loaded in January/February.…
Read the YBB thread above. Doesn't bode well for bonds if Treasuries higher yield flood the market.
As I said in a post on the Treasury thread, I don't agree with the terminology of Treasuries flooding the market. I read the Treasury article as a s…
Looks like the bond market will take a hit as a consequence. Gains made this year could be in jeopardy. Great...
I agree with Derf's comments above that "flood" is not an accurate descriptive term. This statement, "Treasury plans to increase issua…
DT: Good on ya. Can't tie up my $$$ for very long like that. Of course, I'm investing, and that's long-term. What you're doing with CDs, I'n doing with bond OEFs.
Crash, I understand. I am retired and focused on preserving principal, while making a …
Purchased a 6 month CD through Schwab brokerage yesterday, paying 5.3%. CD rates above 5% are commonplace from 3 months to 18 months. Anything longer, falls below 5%. If longer term CDs inch above 5%, I would be tempted to consider them, to repla…
I am still not ready to re-enter the traditional bond oef market. Rising rates seem to still be a strong possibility in bond market considerations. Even FR/BLs are not doing as well as I expected in a rising rate market. I look at MMs paying arou…
"Schwab Brokerage CDs are paying 5.3%"
@dtconroe- Did you mean various bank CDs available through Schwab Brokerage, or Schwab Bank CDs, which are also available at Schwab Brokerage? As far as I know, brokerages themselves cannot offer CDs, at least…
Now that the debt/default crisis is over, I am starting to look at CDs again. I have some cash in MMs, because of the debt/default fiasco, that I looking to invest in higher yielding options. I have also got 2 large CDs maturing in a few weeks,and …
