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That's correct. It depends on your style, age and goals. I use mostly bond funds and doing pretty good.BigTom, I do see this fund as aggressive for a bond holding, but I think there is room for aggressive bond funds within an overall portfolio, especially when managers like Scott Minerd are saying stocks are priced for perfection but there is still value in certain sectors of fixed income.
Here we go again. We haven't seen you for a while.This is exactly the type of fund I love to own. Great managers, new fund, small AUM, under the radar fund. In the Multi sector bond category it has the best year to date performance + great volatility + very high yield. The fund has about 50% in MBS/securitized and about 55% in IG(investment grade) bonds, duration about 2.7.
My numbers are from TCW(
Why are you still 'pumping' risky funds with low SD?
SD deviation does not necessarily equate to risk.
Haven't you learned from the other funds you 'pumped' like SEMMX, IOFFX, JMUTX and PUCZX because they have short term 'momentum' with low SD?
Some of these funds were down 17% in one month.
Promoting a fund which has a small AUM, risky assets and low liquidity is irresponsible.
If investors flee from small AUM funds, it will put pressure on the fund to sell illiquid assets. The fund will be selling these illiquid assets at huge discounts resulting in significant losses.
An investor only has to look at what happened to Third Avenue Focus Credit fund to see the result.
https://www.cnbc.com/2015/12/11/third-avenue-to-liquidate-junk-bond-fund-that-bet-big-on-illiquid-assets.html
This is exactly the type of fund I love to own. Great managers, new fund, small AUM, under the radar fund. In the Multi sector bond category it has the best year to date performance + great volatility + very high yield. The fund has about 50% in MBS/securitized and about 55% in IG(investment grade) bonds, duration about 2.7.
My numbers are from TCW(
My numbers are from TCW(link) then Portfolio Composition.This is exactly the type of fund I love to own. Great managers, new fund, small AUM, under the radar fund. In the Multi sector bond category it has the best year to date performance + great volatility + very high yield. The fund has about 50% in MBS/securitized and about 55% in IG(investment grade) bonds, duration about 2.7.
The Federal Reserve spent $428 million buying debt in individual companies in the first wave of its corporate bond-buying programme, data released Sunday showed.
It bought the corporate bonds in households names such as Walmart, Coca-Cola, McDonald's, and Warren Buffett's Berkshire Hathaway, the data showed.
The Fed spent $5.7 million on debt in Berkshire Hathaway Energy, a subsidiary of Buffett's conglomerate.
$6.8 billion worth of corporate debt ETFs were also bought by the Fed, with the central bank pouring $1.8 billion into a single ETF.
@Junkster - Are you drinking from this punch bowl?
1.High yield rates “should be” trading closer to 11.0% than 6.4% to compensate for default risk. And that’s for today’s default rate — we haven’t even hit the peak yet. A no-brainer assessment of how mispriced this asset class is at the moment. In fact, when you look at the 50-year history of the data, you will see that the norm is for the average coupon in the high yield market to be about 500 basis points above the prevailing default rate at any given moment of time. Today, the two levels are dead-even — and another case to be made that appropriate compensation for the inherent default risk is much closer to 11% than it is to 6%.
2.The high yield market seems to be pricing in a default rate of 3.25%, which is half today’s level. Instead of discounting a recessionary default rate, the market is pricing in a default rate we typically see three years into the economic recovery.
and,
To be sure, the stock market is way too overpriced for my liking. But the future earnings outlook is a source of debate, and the bulls have stated their case.And I get it. But high yield bonds —come on, it’s as plain as day. It’s about default risk and getting the compensation you deserve as an investor. But you see — it is the debtor, the borrower, that the Fed is most concerned about... creating this massive gap between the current artificial price and true intrinsic value will not, in the end, serve anyone very well.
Wealth-Track_Breakfast_with_Dave_2020_06_24.pdfFrom where I sit, there are things I do like even if I’m not a buyer of the Dow, S&P 500 or Nasdaq outright. I still like growth over value; I like essentials over cyclicals; I like “Big Safety”; I like the “homebody” stay-at-home stocks; I like the long end of the Treasury curve; I like Japan as a secular Abe-led turnaround story; I like secular themes tied to medical technology and cyber security investments; ESG is here to stay; and my strongest conviction is in gold and gold stocks (silver too — “ poor man’s gold”). While the Fed may be backstopping the outer limits of the corporate bond market, I wouldn’t touch it. They are so mispriced for the current and prospective default wave, it’s not even funny. If you’re that bullish, just buy stocks. If you want to invest defensively and seek yield, look at preferreds, or the solid dividend yields in selective REITs, telecom with financial depth, and utilities.
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