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Posted by Rich Carreiro on April 8, 2008, 4:38 pm
It's not often that an ultra-short term bond fund manages
to lose 24% in 3.5 months...
http://www.portfolio.com/views/blogs/market-movers/2008/04/07/the-plunging-schwab-bond-funds
Though the potential opportunity re: Schwab's Short-Term fund
is intriguing (not that I'm going to touch it).
--
Rich Carreiro rlc-news@rlcarr.com
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Posted by FranksPlace2 on April 9, 2008, 9:38 am
> It's not often that an ultra-short term bond fund manages
> to lose 24% in 3.5 months...
>
> http://www.portfolio.com/views/blogs/market-movers/2008/04/07/the-plu...
>
I think bond funds are like medicine. I don't like them but I am told
I have to have a "balanced" portfolio. Over the past 10 years I
probably could have doubled the size of my portfolio if I didn't own
any bond funds.
Frank
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Posted by rick++ on April 9, 2008, 10:10 am
Was that based on "auction rate bonds"?
These paid slightly more than other short paper,
but became illiquid this year. They may recover
as the Fed increases liquidity.
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Posted by Will Trice on April 9, 2008, 8:10 pm
Rich Carreiro wrote:
> Though the potential opportunity re: Schwab's Short-Term fund
> is intriguing (not that I'm going to touch it).
It's only an opportunity if they're still holding the assets that lost
so much money...
-Will
william dot trice at ngc dot com
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Posted by on April 10, 2008, 8:25 am
> Rich Carreiro wrote:
>
> > Though the potential opportunity re: Schwab's Short-Term fund
> > is intriguing (not that I'm going to touch it).
>
> It's only an opportunity if they're still holding the assets that lost
> so much money...
It's possible that some of the great bargains may be
had in a situation like this via a *closed* end fund
rather than an open-ended one. CEFs have the advantage
during market turmoil of not having to sell stuff off
at the worst possible time in order to pay out redemptions,
so they may be able, in fact, to continue to hold the
securities in question.
--
Plain Bread alone for e-mail, thanks. The rest gets trashed.
No HTML in E-Mail! -- http://www.expita.com/nomime.html Are you posting responses that are easy for others to follow?
http://www.greenend.org.uk/rjk/2000/06/14/quoting
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