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

It's Not A Chase For Yields, It's A Chase For Fees

TedTed
edited August 2014 in Fund Discussions
FYI: “One lesson from 2008 is that if it’s very complicated and you don’t understand it, maybe you shouldn’t buy it.” – Harry Markowitz

It appears some people didn’t learn their lesson from the CDO debacle of the last financial crisis. This comes from a story in last week’s Wall Street Journal on a new fixed income derivative product that’s being rolled out by Goldman Sachs (emphasis mine):
Regards,
Ted
http://awealthofcommonsense.com/chasing-yield-looks-like/


Click On Article Title Top Of Google Search)
Yield Hunters' New Tune Echoes Financial Engineering's Past
https://www.google.com/#q=yield+hunters+wsj

Comments

  • heezsafe
    Several months ago, I posted on the same thing happening, in a sizable way, with CLOs, but no one found it noteworthy. Little from 2007 way-of-doing-business has changed, just more non-rule rules.

    http://www.mutualfundobserver.com/discuss/discussion/13910/clos-come-on-down-again#latest

    "Some of the best investment decisions you ever make will be the opportunities you turn down." Couldn't agree more. And if ya see your MF managers starting to put these things into his/your portfolio, ya might begin to question their sanity.
Sign In or Register to comment.