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.
Generative AI (ChatGPT, Bard etc) is benefitting the big techs - MSFT, GOOGL, NVDA, etc. Of course, NVDA (semi-chip designer) jumped today on huge beat on sales and profits due to high demand from AI, and the related stocks TSM (semi-chip manufactur…
Congress is on Memorial Recess now, but may be recalled on short notice. More precious days to the debt-ceiling deadline wasted.
Meanwhile, very short-term T-Bills yields are acting up, while the dollar is getting stronger. This may be getting comp…
Moody's is just watching for now (this article was before the Fitch's new).
https://www.reuters.com/markets/us/change-tone-us-debt-talks-could-prompt-rating-action-before-default-moodys-2023-05-24/
S&P has been quiet - it did the damage already…
@larryB, thanks for the info. I just browsed Schwab Bank site w/o login & didn't see any CDs offered. Next time I log into Schwab, I will check out Schwab Bank CDs too.
In the past I have used Schwab Brokerage to buy other bank CDs.
My main po…
@dtconroe, Schwab Bank is part of Schwab (holding co), and it is Schwab (holding co) that undergoes Fed stress-tests. There is no reason for Schwab to overcapitalize Schwab Bank so long as it is on the hook. Schwab Bank doesn't offer its own CDs - t…
"Permanent" DC deal may be a debt-ceiling to some 2024 post-election day. And then, this fiasco will begin all over again.
One of the sticking point in the current negotiations is that there seems agreement for extension to some pre-election date …
Is a bid/ask/spread of over 19% a big deal on a bond ETF?
Bid-ask are reliable only during the market hours. At other times, stub/placeholder bid-ask may be shown that look outrageous.
Pimco multisector bond funds are;
OEF PONAX / PIMIX
CEFs PDI, PDO, PAXS
etc.
The same group of people will be managing this new ETF:
"PIMCO serves as the investment adviser for the Fund. The Fund’s portfolio is jointly and primarily managed by Dani…
At Schwab, I just use the linked Schwab Bank that has Bill Pay (as backup, as I use another Bill Pay as primary); it is also linked to some other accounts. If you sell Schwab m-mkt fund, the money is available for transfer to Schwab Bank the next mo…
I am familiar with broader definitions/interpretations of "cash". People can call anything whatever they feel like.
But in this thread, with the OP operating under regulatory constraints, and often repeating that his funds are NOT cash-alternative…
There was indeed a Japan Fund (SJPNX, etc; its catchy logo was stylish JF) that had many subadvisors over its life, 1990s-2014, Scudder, Fido, Nomura. In 2014, it was merged into Matthew's Japan MJFOX.
https://www.businesswire.com/news/home/20141007…
Low-cost active Capital Group ETF CGDV (newer, 02/2022- ) is more div-growth (e.g. VIG, etc) than current-div (VYM, SCHD, etc). The latter have been hurt by higher exposures to financials in this regional banking crisis.
I think it is the parent/holding co (for Brokerage, Bank, etc), or SCHW, that issued the bonds. Nonbank financials can own banks only with a holding co structure.
I have Fido, Schwab & also Vanguard brokerages. I try to follow what is going on with all of them.
It looks like at all players in the DC have now said that US debt default if off the table - McCarthy was dragging his feet. So, something will b…
Fido has several m-mkt funds. SPAXX is among core/settlement funds. But Fido has other higher yielding m-mkt funds with higher min & restrictions. Fido draws automatically from SPAXX first, & then from other Fido m-mkt funds.
Barron's article title says all: "Schwab Raises $2.5 Billion in Bonds to Shore Up Finances"
Nothing new in the article that is likely behind a paywall.
https://www.barrons.com/articles/charles-schwab-bond-offering-5be6b0a0?mod=bol-social-tw
Only m-mkt funds and T-Bills are "cash" alternatives. No other fund, including the ultra-ST bond funds, can formally serve that purpose.
But many posters do use ultra-ST and short-terms bond funds for liquidity. I was surprised that several ST bond…
May be it was just talk or hubris that Schwab could handle the flight of all uninsured deposits from its current liquidity (counting access to Fed BTFP & Fed Discount Window). It is issuing these bonds now at much higher rate than it could last …
M* has invested a lot in ESG - it owns the ESG rating firm Sustainalytics that has also generated some controversy over its rating methodology. The ESG ratings for funds are displayed in a tab on fund quote pages.
This seems a part of M* ESG/sust…
I have read that in case of no/delayed debt-ceiling resolution, the T-Bill may hit 8-10%. Just imagine the mark-to-market (MTM) chaos that will cause for m-mkt funds, bank capital, loan collaterals. May be the government will declare some MTM holida…
Several fund families now have 0% ER funds for advisory accounts only. Fido version is Fido Flex, TIAA version is class W, etc. I am sure that the firms get some cut from the advisory fees although this isn't visible to clients.
Fido also has retai…
Dollar diversification is one of the reasons for foreign exposure. Dollar has been strong for last several years, but may have peaked in September 2022. Since then, the pattern is of a decline (look at declining 50d-MA and 200-dMA) with wiggles up/d…
Good to know that this reclassification to "Gift" is possible after the fact. Of course, in your case, it was a mistake, but the solution could have been more messy.
Some used the Gift route while the I-Bond rates were high, but the rate now may no…
SPACs have been disasters, and the general IPO market is almost dead.
Premerger-SPACs is a niche area that benefits from the problems of SPACs - they have about a 2-yr window to find something OR refund the money. It is the latter part that benefi…
Regional bank KRE is in mid-30s again (as in early-May). I think that is good price for it - but after an initial position in early-May, I am not adding to it here. The downside is 2020/pandemic-low in mid-20s. The upside is if there is a comprehens…
The problem is that almost everyone thinks that a solution for the debt-ceiling problem will be found at the last minute. But then, most think (at least in the DC) that it is for others to fix it. A meeting of the main players scheduled for Friday w…
@Mark, congratulations.
In 3 months when he gets his Social Security number, open a grandparent 529 to get a head start on college. Recent changes have eliminated previous roadblocks for this.
Twitter is buzz with rumors - she is establishment, with high-level WEF connections, etc, while Musk is so anti-establishment. I think she is smart enough to make sure that any spur-of-the-moment actions or firing by Musk will be very costly to Musk…
@hank, strange thing about StockCharts is that custom settings carryon for a while, but after some time, they default to 1-year. So, my comment about resetting the date. Good that you could see custom 9/22/22 as intended.
All major indexes are similar since 9/22/22, except R2000. In the chart link below, enter date 2022-09-22. However, there were other dips in Oct, Nov, Dec 2022.
https://stockcharts.com/h-perf/ui?s=$INDU&compare=$COMPQ,$SPX,$TRAN,IWM&id=p5371…
This FDIC proposal is under the US government agency's rule-making authority. So, the proposal is published, people & businesses can comment for 60 days, the agency may tinker with the proposal (or not), and the proposal goes into effect as a ru…
This is almost a soft expansion of the FDIC insurance, although not stated explicitly.
First, the FDIC covers ALL deposits at 3 failed banks (SVB, Signature, First Republic). Second, to recover its costs, it imposes this 12.5 bps fee for 8 quarter…
One problem is that legislative Acts that are passed are applicable for years/decades and many are touted to be budget-neutral when passed. But that is based on wild guesstimates of future economy, taxes, consumer and business behaviors. Many Acts a…
Which VIX?
There are now several VIXs. The default VIX is really VIX30D.
The newest VIX1D is showing very high daily volatility as it is affected by volatility-decay as the 0DTE (near day-start) approach expiry and more 1DTE (near day-end) are pi…
See FDIC FAQs on First Republic & brokered CDs. Delays may be because only the broker has customer details & Cede may be involved as an intermediary.
"WHAT HAPPENS WITH MY BROKERED DEPOSITS?
All brokered deposits, excluding the Cede & …
HTM Treasuries/MBS are in longer-dated or investment portfolio. They won't be in the "cash" portion. Also, the CUs are much simpler in structure than banks. I haven't read about this being an issue for the CUs.
Bank ratings and supervision have to adjust to the underwater HTM Treasuries/MBS and CREs on bank balance sheets. These have been the cause of recent bank runs and many more are vulnerable. I learned recently that this problem of not/delayed mark-to…
@Bobpa, moderate-allocation BALFX (60-40) is NTF at Schwab. You may use it in combination with m-mkt or ultra-ST/ST bond fund to adjust allocation to comparable 38-62 for VWINX.
