@Junkster
Still holding my Junk. The new Core-Plus fund is just 1.5% of portfolio. WCPNX. Enjoying the ride, though my junk funds are by no means leading the pack.

@Crash, I give you credit for your persistence and glad it is working out for you.

@Junkster
Still holding my Junk. The new Core-Plus fund is just 1.5% of portfolio. WCPNX. Enjoying the ride, though my junk funds are by no means leading the pack.

Still not sure the need to lower rates aggressively from here. S@P hit an all time high this morning. Junk bonds at all time highs. Several firms revising third quarter GDP higher. An interesting tidbit from market technician Ryan Detrick. Since 1980 the Fed has cut rates 20 times when the S@P was at or within 2% of all time highs. All 20 times the market was higher 12 months later with an average return of 13.9%.

Bought a few more of ET on the share price dip after that crazy well-head or valve fire in Deer Park, TX, outside Houston. Should have burned off by now. Now 5.45% of portfolio. BHB is behaving nicely, anticipating rate cuts. Tiny position in BCE is finally looking up. Canadian rate cuts...
https://www.reuters.com/business/energy/energy-transfer-pipeline-continues-burn-la-porte-texas-2024-09-17/
From the Schwab website:
"...a massive pipeline explosion after a vehicle drove through a fence and struck an above-ground valve, officials said....The statement by Deer Park said Energy Transfer, the Dallas-based owner of the pipeline, expects the fire to burn itself out later Tuesday...."
(Drunk driver??? We don't do suicide bombings in THIS country.... YET! There is no info on the driver yet, either.)
"Harris County Judge Lina Hidalgo said in a statement that 20 miles (32 kilometers) of pipeline between the two closed valves had to burn off before the fire would stop."
OMG.

@ FD. For several years the total return on CD’s killed bond funds for everyone but you. The situation was shorted lived but lots of risk free cash flow was fun while it lasted.

First, the question is about now.
Second, in the last 2 years the right bond funds killed CD...CBLDX made 15+%...OSTIX 20+%. There are better ones. The right bond funds have more to go. 2024 has been one of the easiest one to make money.
Third, I know others who have done well too.
But, if you like CD, by all means use them.

It used to be that computer-generated ratings were flagged by Q-symbols. Morningstar generates genuine analyst ratings for about 15-20% of the fund universe it covers. Now there is additional work as each fund class has its own analyst rating (not just the oldest class).
But earlier THIS year, Morningstar removed the Q-symbols claiming that its computer-generated ratings are now as good as the analyst-generated one, or one could say that analyst-generated ratings are just as bad as the computer-generated ones.
So now, the only indication of computer-generated rating may be from the text that may have more indecipherable gobbledygook in the computer-generated ratings.

Huh. I was just on M* a few weeks ago and still saw Q-symbols for a bunch of tickers. Maybe they were the last ones to go.
I strongly disagree with how they now term their AI-based 'analysis' as "Morningstar Manager Analysis" or something like that (I forget the actual title). The takeaway is, unless you see an (allegedly) real person's name on an article or analysis, it may well be computer-generated. DYODD, caveat reader, and all that.

It used to be that computer-generated ratings were flagged by Q-symbols. Morningstar generates genuine analyst ratings for about 15-20% of the fund universe it covers. Now there is additional work as each fund class has its own analyst rating (not just the oldest class).
But earlier THIS year, Morningstar removed the Q-symbols claiming that its computer-generated ratings are now as good as the analyst-generated one, or one could say that analyst-generated ratings are just as bad as the computer-generated ones.
So now, the only indication of computer-generated rating may be from the text that may have more indecipherable gobbledygook in the computer-generated ratings.

Hi FD1000. Thank you for commenting and joining the discussion. No, I am not a trader. The only funds that I own in the list I provided are CBLDX and PYLD. I, like you, like to invest with special managers in the bond arena. Who would you recommend beyond Mr. Sherman and Mr. Ivascyn? I appreciate your thoughts. Thank you.
Mike

Unfortunately, I don't recommend funds, and I know some :-), long story why.

I had a similar question recently having started a position in MLN last fall. MLN is riskier than I like although even "conservative" higher yield munis lost 15% or more in 2022. MLN has bounced back so I kept it not wanting more capital gains.
After looking at a number of funds I finally settled on PRFHX and PHMIX. They have higher APRs than the peer group, with a St Dev and DD similar to others and the usual "Lower risk high yield fund everyone mentions" VWAHX)

rsorden, thanks for your input! Any thoughts on why he moved to First Eagle? NHMAX was very volatile per high SD (12+) under Miller with mixed results; very good long-term, not so much shorter-term.
NVHAX doesn't seem overly impressive to me either. SD was below category, returns a bit mixed, but the up/down ratio's were not bad.
I wonder if FEHAX is going to become another NHMAX? What's your guess?
What's your overall feeling about Mr. Miller? I believe you buy the PM and the objective, so it's important to me that the PM is stable, consistent and reliable. Thx!

It's here for M* Medal Rating changes,
https://www.morningstar.com/funds/why-were-enhancing-morningstar-medalist-rating
Timing of the Change
We expect the Medalist Rating change to go into effect on Oct. 29, 2024. The exact timing of when the change will be reflected in Medalist Ratings will vary depending on how the rating is assigned, as explained further below.
Medalist Ratings Not Assigned by Analysts
We expect the change to be incorporated into the Medalist Ratings of all funds not covered by an analyst on Oct. 29, 2024. These ratings are updated monthly and therefore we expect the change to be a part of the monthly production process that’s scheduled for that day.
Medalist Ratings Assigned by Analysts
We expect the Medalist Rating change to be incorporated more gradually into the funds covered by analysts. For the change to be incorporated into a fund covered by an analyst, the analyst must update the rating of that fund. Analysts update these ratings about every 14 months as part of their regular coverage schedule. As such, we expect it will take around a year or so for the Medalist Rating change to be fully reflected in the ratings of funds covered by analysts.

The Week in Charts (09/16/24)
The most important charts and themes in markets and investing, including:
00:00 Intro
00:21 Free Wealth Path Analysis
01:06 Topics
02:42 The Inflation Downtrend Continues
07:57 The Most Absurd Number in CPI
10:46 What Should/Will the Fed Do?
18:45 Don't Try This at Home
23:47 Big Tech's Incredible Run
28:11 The Watch Bubble Has Burst
31:22 Americans Falling Behind on Their Bills
36:11 The Path to Prosperity
Video
Blog - 09/16 blog not currently available

Anxious to see how the bond markets respond to Fed day Wednesday as well as the following day, I usually have an opinion (which thankfully I never base my trades on) but haven’t the slightest idea of how the markets will react Wednesday and Thursday. If forced to wager a guess, still looking for a move down to 3.50% in the ten year and lower by end of 2024.
The past few months have been nirvana for bond traders and investors. And YTD many bond funds are already up double digits. How long can this continue? Besides the two funds I mentioned last month as well as my MBS fund, I also hold an emerging markets debt fund. Rising gold, falling dollar, lower Fed funds ahead of us and investor apathy on the various boards towards emerging markets are just a few of the reasons. I also wanted a fund with more fixed rate debt as much of what I own are funds with a larger proportion to floating rate. The CLOs bond ETFs just keep rolling on as does HOSIX, a CLO OEF. The later has also been great substitute for cash. Curious to see how the CLOs respond this week.
Lastly, wanted some exposure to the subprime non agency RMBS market much akin to IOFIX. But wouldn’t touch that one with a ten foot pole. So found a fund that has a foothold there but with a far better track record YTD than IOFIX.
Edit. To contradict my feelings about the 10 year above. If the economy was weakening why are junk bonds at all time historic highs. Not what you would see if a recession is on the horizon.
https://fred.stlouisfed.org/series/BAMLHYH0A0HYM2TRIV

With many possible changes to tax code coming in the next year, I thought a tax thread discussion might be worth creating.
Here's an article from Forbes on the topic:
your-first-look-at-2025-tax-rates-projected-brackets-standard-deductions-and-more
Comparing 2024 to Projected 2025 numbers:
https://thefinancebuff.com/tax-brackets-standard-deduction-0-capital-gains.html

Been adding to home builder stocks, DHI (DR Horton) and PHM (Pultegroup). Still pretty small positions overall but I want to play the trend. My biggest holding in that arena is BLDR (Builders Firstsource) which I've bought and sold a few times over the years. Also been moving more MM cash to existing bond funds, CSOAX (Credit Suisse strategic income) and IGIB (iShares 5-10 Year Investment Grade Corporate Bond)... FWIW.

With the impending FED rate cut(s), I have been dipping my toe into the bond arena.
I'm currently interested in the MUNI area to augment the intermediate-term muni MF I already hold. I'm finding it somewhat difficult to narrow down the way I would like to. I'm looking for a solid fund with very good risk/reward, solid returns and reasonable SD (under 10) and a more "conservative" downside capture ratio with a good upside ratio (if this makes sense).
**I am open to MF or ETF (prefer active) and to this point have identified three candidates.
FEHAX (First Eagle High Yield Municipal): might be a bit performance chasing, but doing extremely well with the new PM of 6 or 7 months. It's metrics are impressive, but again new PM with a very short track record with this fund
ABHFX (American High-Income Municipal): very good metrics and returns and track record
CGHM (Capital Group Municipal High-Income): Brand NEW ETF, about three months new. From what I can tell, It appears to be a cousin of ABHFX. I believe the share they same managers, objectives and some metrics that I can find.
Any thoughts, ideas, other suggestions are very welcome! Thx. Matt

Hi FD1000. Thank you for commenting and joining the discussion. No, I am not a trader. The only funds that I own in the list I provided are CBLDX and PYLD. I, like you, like to invest with special managers in the bond arena. Who would you recommend beyond Mr. Sherman and Mr. Ivascyn? I appreciate your thoughts. Thank you.
Mike

update:
https://www.sec.gov/Archives/edgar/data/1028621/000182912624006290/tcwmetwest_497.htm

September rebalance of XLK won't be much in the news for a good reason. It changed to proportional reduction in weights of the largest 5%+ holdings, rather the the old stupid "stick it to smallest of the 5%+ bunch". This is GOOD.
Edit/Add. Rebalance date 9/20/24 after market close. Effective date 9/23/24.
https://x.com/YBB_Finance/status/1835671248182862197