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I've had a terrible craving for a really good hot dog all week. This story will have to suffice (for now), but is in keeping with David's August commentary theme: The Dog Days of Summer.
HomeFed issued $150 million in senior notes that mature in three years, with a coupon of 6.50%. The company chose not to pay for a rating. The money was used to buy a 1,400 acre property known as Otay Ranch, which according to Sherman was “contiguous to property HomeFed already owned.
That would be a tad over $107,000 / acre. It must be a Wall St. property !!!! ??? (California)5300 acre development. Derf
Many, including myself, considered RSIVX as the fund similar to OSTIX. However YTD OSTIX return exceeds 3% and RSIVX 4 times less. Both funds have comparable yields but the price of RSIVX bonds decline much worse eating up practically all income from its coupons. Is RSIVX really good for income investors with its 6% yield? Should investor expect the price reversal for the fund in the future and for what reason? Otherwise the total return near zero is not very attractive.
If you look back at David's profile, RSIVX aims for a 5 year investing period, during which it will aim to provide high income and at the end of the period at least break even on principle. So it accepts somewhat higher volatility. RPHYX is meant to be less volatile and lower return.
RSIVX has struggled this year, that's for sure. I see other funds as better alternatives for total return, such as DLINX, ASHDX and OSTIX.
+1. The funds Will mentioned have considerably better Sharpes and up-down capture than RSIVX. (It's in the same overall credit-risk category (~B) as those other funds, so it's an entirely appropriate comparison.)
Comments
That would be a tad over $107,000 / acre. It must be a Wall St. property !!!! ??? (California)5300 acre development.
Derf
Is RSIVX really good for income investors with its 6% yield? Should investor expect the price reversal for the fund in the future and for what reason? Otherwise the total return near zero is not very attractive.
I'd give it a little more time.