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T. Rowe Price U.S. High Yield Fund in registration
I am currently invested in a T.Rowe price hi yield fund. Without looking carefully I assume it holds emerging bonds or similar but a key difference and probably the reason this new fund was created is because my fund is closed.
Just wondering. ... Is this a clone of their existing one (PRHYX) which has been closed for several years?
I doubt you'd get the same bond composition that PRHYX has, so I'd be leery of chasing performance in the hopes that this fund will emulate/duplicate the success and quality run of PRHYX. Still keeping it on my radar even though I'm not really interested in FI anytime soon, though.
New fund is "US High Yield". PRHYX currently "only" about 71% US bonds. Foreign bonds definitely not EM or Frontier heavy. Not sure if now is the right time, but in 30 years I doubt anyone will say the fund would have been better if only they had launched it 5 years earlier/later... unless it fails and someone on MFO remembers this thread. Maybe Ted will be around then to post it.
TRP may have missed the boat in closing PRHYX prematurely - expecting a bear market that failed to develop. On the other hand, perhaps it just became too large and unwieldy. @Junkster is the expert here. I know very little about the high yield market. What little exposure I have is indirectly through allocation funds like RPSIX. And I've no desire to jump into this or any high yield fund.
If I follow correctly, Price will have (at least) 3 high yield funds:
High Yield, International High Yield U.S. High Yield
Mark Vaselkov made PRHYX what it became. I'd be reluctant to invest in a Price high yield fund without his being at the helm. From my experience their fixed income people are hit and miss - but Vaselkov is a great one.
@hank said Mark Vaselkov made PRHYX what it became. I'd be reluctant to invest in a Price high yield fund without his being at the helm. From my experience their fixed income people are hit and miss - but Vaselkov is a great one.
Sounds like you do know junk bonds being spot on in your statement above. Not sure about junk bond experts of which I am certainly not. I recall when "experts" such as Icahn and Gundlach were looking for a junk bond market meltdown late 2015/early 2016. But instead of a meltdown we get a 20%+ meltup. Marty Fridson the most acclaimed junk expert said early last summer the overvaluation in junk was "staggering". Funny how the market rarely listens to the experts.
Hi @Junkster You noted: "Marty Fridson the most acclaimed junk expert said early last summer the overvaluation in junk was "staggering". Funny how the market rarely listens to the experts."
Ha.........yes. I read Mr. Fridson comments/thoughts.
But, I do believe that larger monies apparently are dictating this market place, too; not unlike other "surprise" areas. I suspect algos in place for trading purposes, although adjustable/modifiable by humans; are causing directional moves/trends that come and go without apparent fundamental reasons for we regular retail humans. These functions also catch the "experts" by the butt, too.
One may select any market area from the http://finviz.com/futures.ashx list, let alone the thousands of other market choices that are tradeable and find those who have such a passion and knowledge of a particular investment area who make a fine monetary living. There are many traders on the planet earning a decent income trading coffee, sugar and bond CDS contracts.
A first person view for me into this strange world (at the time) comes from my "way back" machine. While traveling through Europe for 1 year, in 1973, with a female companion; we had the opportunity to stay with a Frenchman and his family for several days. His self employment was being the middle man for sellers and buyers of produce products throughout Europe. I observed his work during the very early morning hours for two days. He spoke several languages and used his land line phone making deals between customers in Italy or Poland or whatever country for apples, lettuce or what was needed. I recall he did have a teleprinter (online) for product pricing. This of course, was before the technology of today and also dealing with currency pricing of various countries (pre-Euro). This was a most interesting experience for this traveler of a young age into this unknown world of commerce and money making.
An overview for me is that so much money is moving without regard to so-called fundamental aspects; that technical aspects do have an important meaning for those with the passion, understanding and time of the technical trending in play for a given investment. If one wants to be a pure value investor and is patient; create a list and monitor whatever investment area is of interest with a relative strength value below 30. Do one's best to discover why the RSI is at or below 30 for what you are monitoring. An RSI below 30 may be in place for a very good reason(s). @Junkster.........noted that you use price channels, yes? Not unlike those who were thrilled with returns in 2016 from the domestic value equity area; now find the rotation back to the growth side of these large, mid and small caps. Obviously, very broad market sectors have playable sectors. I don't suggest trading investment area patterns for the majority and is not the aspect of MFO. This house continues to move away from this.......from time constraints and passion; and moving more to a keep it simple. As to a most simple basic example: 50% in a broad U.S fund, index or etf and 50% in a bond fund, index or etf of one's choice. Samples: VTI and PIMIX ---YTD combo 3.7% (annualized forward for 2017 of 22.2%, w/o market blowups) ---1 year average combo = 19.7% ---3 year average combo = 8.2% ---5 year average combo = 11.2%
Okay, I've rambled way past this HY thread and far exceeding my annual dues rate.
Comments
1) name of new fund is same as name of existing fund ?!?!?! and
2) Today is good time to start a high yield fund?
what am i missing?
Not sure if now is the right time, but in 30 years I doubt anyone will say the fund would have been better if only they had launched it 5 years earlier/later... unless it fails and someone on MFO remembers this thread. Maybe Ted will be around then to post it.
TRP may have missed the boat in closing PRHYX prematurely - expecting a bear market that failed to develop. On the other hand, perhaps it just became too large and unwieldy. @Junkster is the expert here. I know very little about the high yield market. What little exposure I have is indirectly through allocation funds like RPSIX. And I've no desire to jump into this or any high yield fund.
If I follow correctly, Price will have (at least) 3 high yield funds:
High Yield,
International High Yield
U.S. High Yield
Mark Vaselkov made PRHYX what it became. I'd be reluctant to invest in a Price high yield fund without his being at the helm. From my experience their fixed income people are hit and miss - but Vaselkov is a great one.
Sounds like you do know junk bonds being spot on in your statement above. Not sure about junk bond experts of which I am certainly not. I recall when "experts" such as Icahn and Gundlach were looking for a junk bond market meltdown late 2015/early 2016. But instead of a meltdown we get a 20%+ meltup. Marty Fridson the most acclaimed junk expert said early last summer the overvaluation in junk was "staggering". Funny how the market rarely listens to the experts.
You noted: "Marty Fridson the most acclaimed junk expert said early last summer the overvaluation in junk was "staggering". Funny how the market rarely listens to the experts."
Ha.........yes. I read Mr. Fridson comments/thoughts.
But, I do believe that larger monies apparently are dictating this market place, too; not unlike other "surprise" areas.
I suspect algos in place for trading purposes, although adjustable/modifiable by humans; are causing directional moves/trends that come and go without apparent fundamental reasons for we regular retail humans. These functions also catch the "experts" by the butt, too.
One may select any market area from the http://finviz.com/futures.ashx list, let alone the thousands of other market choices that are tradeable and find those who have such a passion and knowledge of a particular investment area who make a fine monetary living. There are many traders on the planet earning a decent income trading coffee, sugar and bond CDS contracts.
A first person view for me into this strange world (at the time) comes from my "way back" machine. While traveling through Europe for 1 year, in 1973, with a female companion; we had the opportunity to stay with a Frenchman and his family for several days. His self employment was being the middle man for sellers and buyers of produce products throughout Europe. I observed his work during the very early morning hours for two days. He spoke several languages and used his land line phone making deals between customers in Italy or Poland or whatever country for apples, lettuce or what was needed. I recall he did have a teleprinter (online) for product pricing.
This of course, was before the technology of today and also dealing with currency pricing of various countries (pre-Euro). This was a most interesting experience for this traveler of a young age into this unknown world of commerce and money making.
An overview for me is that so much money is moving without regard to so-called fundamental aspects; that technical aspects do have an important meaning for those with the passion, understanding and time of the technical trending in play for a given investment. If one wants to be a pure value investor and is patient; create a list and monitor whatever investment area is of interest with a relative strength value below 30. Do one's best to discover why the RSI is at or below 30 for what you are monitoring. An RSI below 30 may be in place for a very good reason(s). @Junkster.........noted that you use price channels, yes?
Not unlike those who were thrilled with returns in 2016 from the domestic value equity area; now find the rotation back to the growth side of these large, mid and small caps. Obviously, very broad market sectors have playable sectors.
I don't suggest trading investment area patterns for the majority and is not the aspect of MFO. This house continues to move away from this.......from time constraints and passion; and moving more to a keep it simple.
As to a most simple basic example: 50% in a broad U.S fund, index or etf and 50% in a bond fund, index or etf of one's choice.
Samples: VTI and PIMIX
---YTD combo 3.7% (annualized forward for 2017 of 22.2%, w/o market blowups)
---1 year average combo = 19.7%
---3 year average combo = 8.2%
---5 year average combo = 11.2%
Okay, I've rambled way past this HY thread and far exceeding my annual dues rate.
Take care,
Catch
David