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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.

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  • Thanks Derf. First time I've read the Schwab insights section, and indeed anything at all from Schwab. A very considered article there from Kathy Jones.
  • This is a very insightful article.
    Thanks for posting the link!
  • That was a very good read. Thank you very much, indeed!
  • Schwab has a team of professionals that puts out these pieces. More familiar may be Liz Ann Sonders, Carrie Schwab-Pomerantez, Cathy Jones.
    https://www.schwab.com/schwab-experts
  • FWIW, I am bond-illiterate I admit. With this I've pretty much eliminated all categorized bond funds from my self-managed portfolio. My balanced and some alternative type funds of course carry their load of fixed income and I'm fine with that. I still keep ultra and short duration funds/etfs in my withdrawal bucket account.

    Just curious what the knowledgeable bond people here think going forward. If you were to use the information from a "fixed income outlook" piece like this would you increase, decrease or stay the same with your bond holdings moving into 2022 and beyond? Would anyone consider inverse bond ETFs?
  • edited November 19
    Inverse bond ETF. No... Because I'm not professionally paid to be in Finance, and that sounds about as convoluted as it can get..... I read that linked item last night, after having a tooth pulled, earlier. But my takeaway is that to be profitably in bonds, one should incrementally start adding to mid-and-longer duration paper. And it won't pay-off immediately...Of course.

    RPSIX is a fund of TRP bond funds. I'm going to let it ride.
    PRSNX ranks very highly against peers right now. Global reach, but dollar-hedged.
    PTIAX is mostly Munis and MBS, and is listed by Morningstar as "Core-plus."

    PTIAX is my newest bond holding, since 2018. I do not fly in and out of funds often. Deliberately. These three are not lighting the world on fire, but are holding up pretty darn well. The lowest ranked right now is RPSIX. But it's still in the top half, among Morningstar peers. I know that M* is faulty, mistaken and tardy a lot. But it's my handy reference.

    I was planning to take a chunk from RPSIX and buy a bunch of TUHYX (TRP junk.). That very lucid article from Schwab asserts--- gently---- that I'd already be late to the party, on that score. So, I'll let what I'm already holding just ride. No changes, except that after the New Year, I'll be adding to my bonds: PRSNX, particularly. PTIAX can take care of itself, I've got a tiny trickle going in there every month, already, automatically. The goal is to continue to further insulate the portfolio from volatility and risk. I want to get to 35 stock and 65 bonds... But the stock market is making that difficult to achieve. A nice problem to have.
  • edited November 20
    Good article from Kathy Jones again. Not sure why but there are seven missing figures in it.

    My bond funds are having hard time already this year. There will be sizable headwind going into 2022 with several rate hikes.

    @crash, I exited PRSNX in spring this year and added it to OSTIX (short duration high yield bond). High yield bonds tend to do okay in rising rate environment providing they are gradual, i.e. 25 bps at a time.
  • Crash said:

    Inverse bond ETF. No... Because I'm not professionally paid to be in Finance, and that sounds about as convoluted as it can get..... I read that linked item last night, after having a tooth pulled, earlier. But my takeaway is that to be profitably in bonds, one should incrementally start adding to mid-and-longer duration paper. And it won't pay-off immediately...Of course.

    RPSIX is a fund of TRP bond funds. I'm going to let it ride.
    PRSNX ranks very highly against peers right now. Global reach, but dollar-hedged.
    PTIAX is mostly Munis and MBS, and is listed by Morningstar as "Core-plus."

    PTIAX is my newest bond holding, since 2018. I do not fly in and out of funds often. Deliberately. These three are not lighting the world on fire, but are holding up pretty darn well. The lowest ranked right now is RPSIX. But it's still in the top half, among Morningstar peers. I know that M* is faulty, mistaken and tardy a lot. But it's my handy reference.

    I was planning to take a chunk from RPSIX and buy a bunch of TUHYX (TRP junk.). That very lucid article from Schwab asserts--- gently---- that I'd already be late to the party, on that score. So, I'll let what I'm already holding just ride. No changes, except that after the New Year, I'll be adding to my bonds: PRSNX, particularly. PTIAX can take care of itself, I've got a tiny trickle going in there every month, already, automatically. The goal is to continue to further insulate the portfolio from volatility and risk. I want to get to 35 stock and 65 bonds... But the stock market is making that difficult to achieve. A nice problem to have.

    Thank you, @Crash, your comments are certainly informative. What are your stock holdings if you don't mind me asking?
  • edited November 21
    Mav123 said:

    Crash said:

    Inverse bond ETF. No... Because I'm not professionally paid to be in Finance, and that sounds about as convoluted as it can get..... I read that linked item last night, after having a tooth pulled, earlier. But my takeaway is that to be profitably in bonds, one should incrementally start adding to mid-and-longer duration paper. And it won't pay-off immediately...Of course.

    RPSIX is a fund of TRP bond funds. I'm going to let it ride.
    PRSNX ranks very highly against peers right now. Global reach, but dollar-hedged.
    PTIAX is mostly Munis and MBS, and is listed by Morningstar as "Core-plus."

    PTIAX is my newest bond holding, since 2018. I do not fly in and out of funds often. Deliberately. These three are not lighting the world on fire, but are holding up pretty darn well. The lowest ranked right now is RPSIX. But it's still in the top half, among Morningstar peers. I know that M* is faulty, mistaken and tardy a lot. But it's my handy reference.

    I was planning to take a chunk from RPSIX and buy a bunch of TUHYX (TRP junk.). That very lucid article from Schwab asserts--- gently---- that I'd already be late to the party, on that score. So, I'll let what I'm already holding just ride. No changes, except that after the New Year, I'll be adding to my bonds: PRSNX, particularly. PTIAX can take care of itself, I've got a tiny trickle going in there every month, already, automatically. The goal is to continue to further insulate the portfolio from volatility and risk. I want to get to 35 stock and 65 bonds... But the stock market is making that difficult to achieve. A nice problem to have.

    Thank you, @Crash, your comments are certainly informative. What are your stock holdings if you don't mind me asking?
    Hello, @Mav123.
    My only single stock holding amounts to a tiny sliver of one percent of my total: ENIC. Chilean electric utility. I'm looking at a loss these days which in percentage terms is big. But there's been lots of political junk happening, and on Sunday, 21st Nov. there is to be an election....

    Fund-wise: PRWCX. PRIDX PRDSX and wife's IRA is in BRUFX. Both PRWCX (closed, still?) and BRUFX are allocation funds, holding both stocks and bonds. :)


  • edited November 21
    Sven said:

    Good article from Kathy Jones again. Not sure why but there are seven missing figures in it.

    My bond funds are having hard time already this year. There will be sizable headwind going into 2022 with several rate hikes.

    @crash, I exited PRSNX in spring this year and added it to OSTIX (short duration high yield bond). High yield bonds tend to do okay in rising rate environment providing they are gradual, i.e. 25 bps at a time.

    @sven. Thank you for that information! "Never say never," eh?

  • Hello, @Mav123.
    My only single stock holding amounts to a tiny sliver of one percent of my total: ENIC. Chilean electric utility. I'm looking at a loss these days which in percentage terms is big. But there's been lots of political junk happening, and on Sunday, 21st Nov. there is to be an election....

    Fund-wise: PRWCX. PRIDX PRDSX and wife's IRA is in BRUFX. Both PRWCX (closed, still?) and BRUFX are allocation funds, holding both stocks and bonds. :)



    Thank you @Crash. I was able to get in to PRWCX through my work, yes, it is closed.

    I'll look at the funds you mentioned. Thank you
  • edited November 22
    @Mav123.
    +1.
    oops, Looks like PRIDX is closed, still, too. And BRUFX is still a father/son operation. Because of its very thin batting order, there are many who don't like it, including some here at MFO. But I have tracked DODBX --- same flavor of fund --- and it's too streaky, even if 2021 is quite a good year for it, so far. YTD, it's virtually tied with PRWCX in terms of performance. (19 Nov, '21.)
  • Crash, I think you meant DODBX, rather than DODIX? Note that DODBX would be heavily weighted to value and tends to be at the high end of equity percentage. That clearly impacts the performance this year. Plus, PRWCX has pulled in its horns for months now. That comparison might be a bit strained, imo. I personally like FBALX with PRWCX at the moment.
  • @crash, may be you meant international DODFX instead of closed PRIDX? DODIX is a bond fund. PRWCX (closed at 3rd party brokers), DODBX, FBALX, BRUFX may be comparable and multi-asset FMSDX is also a candidate.
  • Crash, I think you meant DODBX, rather than DODIX? Note that DODBX would be heavily weighted to value and tends to be at the high end of equity percentage. That clearly impacts the performance this year. Plus, PRWCX has pulled in its horns for months now. That comparison might be a bit strained, imo. I personally like FBALX with PRWCX at the moment.

    @racqueteer. You're correct. It was my typo. I intended DODBX, there. I'll correct it. Thank you.
  • ...And I thank you for the reply, too, @yogibearbull. Quite some distance drifting now, from Fixed Income. Sorry, all. I was replying to @Mav123.
  • Anyone looking again at PCI and PDI and such? M* gives low ratings, but still they perform.
  • edited November 24
    There are discussions on the merger of PKO and PCI into PDI at other sites. This has been a long convergence theme with the merger finally effective on December 10, 2021 (about 3 weeks). https://community.morningstar.com/s/feed/0D53o00005UznTdCAJ
  • It seems if you go short PDI and long on PCI for the same notional amount, you are guaranteed to make 1.5% (not annualized) in three weeks.
  • I have an update on PDI in the M* link above.

    "PDI is starting to look interesting. It is under pressure from the upcoming merger and tax-loss selling. I am watching $24-25 area in trading ahead of Friday, December 10 merger date (PKO and PCI will fold into PDI). This is the end of convergence theme on them that has been in play since 2016.

    My usual caution on the understated leverage for CEFs applies. So, the stated leverage for PDI is 41.23% that is debt/total assets. But the PDI holders experience 70.15% that is debt/net assets, or 1.7015x that is the ratio of total assets/net assets.

    PDI at Stockcharts https://stockcharts.com/h-sc/ui?s=PDI&p=D&yr=1&mn=0&dy=0&id=p07707774075

    PDI at CEFConnect https://www.cefconnect.com/fund/PDI "
  • I have been long PCI & PDI since forever and at this moment I intend to do squat. As far as I can tell they aren't broke so I have no need to fix them.
  • I established a partial position in PDI near the close today. The rest may be on/before Dec 10.
  • I do not own any fixed income CEFs but wating for the NAV changes for the day.
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