MFOHome About Commentary Discussions Funds The Best Resources Support Us!

Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

Sign In Register

Categories

In this Discussion

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.

    Support MFO

  • Donate through PayPal

A shortage of junk munis and a warning sign from junk corporates

JunksterJunkster
in Fund Discussions
http://www.bloomberg.com/news/2014-07-15/invesco-closing-high-yield-muni-fund-as-supply-dries-up.html

A friend sent me the above link the other night. Very telling. As for junk corporates, they seem to have gone flat to down during the current push of stocks to new highs. Every pundit and their mother has been calling for a top in junk and being pundits are invariably wrong, not sure if this is the sign of the inevitable top or not. I've been scrambling back into NHMRX in junk munis as well as two bank loan funds - HFRZX (an old fave from last year) and the more sedate LSFYX. Hold some DLENX which has been a steady eddie. Thought I would try something in RSIVX but the feeling passed and sold a starter postion there to free up funds for better areas in bondland. If and when junk corporates do top, there will be no place to hide including RSIVX and OSTIX.

Comments

  • Old_Skeet
    Hi Junkster,
    Thanks for stopping by and providing your thoughts on the high yields. I find good value in reading your perspectives.
    Old_Skeet
  • Old_JoeOld_Joe
    Same sort of thing with RPHYX- unable to find enough very short-term corporate HY junk, so they closed except to existing holders. They are presently holding about 9% cash.
  • expatsp
    Yes, Junkster, thanks, your insight is much appreciated.
  • Mona
    Junkster,

    Much appreciated!

    Mona
  • clacy
    It will be interesting to watch high yield funds over the next few weeks/months. I feel like junk can be a good proxy for what's to come for equities. Canary in the coal mine, so to speak.
  • CharlesCharles
    I'll chime in here also...thanks for sharing Junkster.
  • JunksterJunkster
    Diversification never seems to work for me. After today all I hold is NHMRX (90%) and LSFYX in my IRA and ABTYX in my taxable. I am not one for sitting tight (when a position is moving against me) but in hindsight (where we are all brilliant) should have just sat tight with my original position in NHMRX. I am liking the action in junk corporates even less than before. Hopefully all this negative international news is much ado about nothing (the S&P futures tonight, at least so far are getting hit hard) but recall how in 1990 the market declined 20% off its highs in a couple months on negative international news.
  • Kaspa
    I bailed out of most of my NHMAX position earlier this month. As you say, I may have been too early. Let's see.
Sign In or Register to comment.