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There are rumors on Twitter that Fitch may go ahead with the US downgrade, deal or no-deal.
S&P did that AFTER the resolution of debt-crisis in 2011 & suffered mightily for it - McGraw Hill is now pvt shadow of the former self after spinnin…
My guess is that Vanguard is playing a low-cost hardball with subadvisors.
ONE subadvisor may be lured by big AUM initially, or may be in the early stages of its business, but it may later want more money or may just close the funds (e.g. PRIMECAM …
The US politicians and the public who grew up with "reserve currency" dollar and "high/stable" credit rating don't realize their importance. So, there is this unusual game playing or brinkmanship in the DC that leaves foreigners dumbfounded.
But ot…
Vanguard Quantitative Group is small - only 2-3 dozen total employees. It manages alternatives, factor-based ETFs, some non-VG funds, and when needed, portions of some VG mutual funds. At some point, VG has to decide whether to expand it or use its …
That 0.625% T-Note is trading at 94.11 with YTM of 5.1682%. G/L would depend on when one bought it. https://www.boerse-frankfurt.de/bond/us91282cdb46-united-states-of-america-0-625-21-24
Those are older Treasuries nearing maturities. Coupon shown is that at the time of issue.
For example, 10-yr T-Note issued almost 10 years ago would be nearing maturity now, but will show coupon from 10 years ago. Current price would reflect a chan…
USAA was sold in 2 parts.
USAA mutual funds, etc were sold to Victory Capital/VCTR. Victory even moved its HQ from Cleveland, OH to San Antonio, TX (the old USAA facilities).
USAA Brokerages, wealth management, etc were sold to Schwab/SCHW for $1.…
S&P/SPGI scale is AAA, AA+,... etc; within AA, there are AA+, AA, AA-. It downgraded the US from AAA to AA+ in 2011. Moreover, ALL US financials were also downgraded then with the logic that no US financial can have better rating than the US. So…
...
Let’s great this party started:
VGHCX = VHT
I have often wondered why EFTs don’t hyperlink like mutual funds do on this site.
Healthcare VGHCX / VGHAX is an active mutual fund and doesn't have a related ETF.
However, healthcare VHCIX is ind…
Generative AI (ChatGPT, Bard etc) is benefitting the big techs - MSFT, GOOGL, NVDA, etc. Of course, NVDA (semi-chip designer) jumped today on huge beat on sales and profits due to high demand from AI, and the related stocks TSM (semi-chip manufactur…
Congress is on Memorial Recess now, but may be recalled on short notice. More precious days to the debt-ceiling deadline wasted.
Meanwhile, very short-term T-Bills yields are acting up, while the dollar is getting stronger. This may be getting comp…
Moody's is just watching for now (this article was before the Fitch's new).
https://www.reuters.com/markets/us/change-tone-us-debt-talks-could-prompt-rating-action-before-default-moodys-2023-05-24/
S&P has been quiet - it did the damage already…
@larryB, thanks for the info. I just browsed Schwab Bank site w/o login & didn't see any CDs offered. Next time I log into Schwab, I will check out Schwab Bank CDs too.
In the past I have used Schwab Brokerage to buy other bank CDs.
My main po…
@dtconroe, Schwab Bank is part of Schwab (holding co), and it is Schwab (holding co) that undergoes Fed stress-tests. There is no reason for Schwab to overcapitalize Schwab Bank so long as it is on the hook. Schwab Bank doesn't offer its own CDs - t…
"Permanent" DC deal may be a debt-ceiling to some 2024 post-election day. And then, this fiasco will begin all over again.
One of the sticking point in the current negotiations is that there seems agreement for extension to some pre-election date …
Is a bid/ask/spread of over 19% a big deal on a bond ETF?
Bid-ask are reliable only during the market hours. At other times, stub/placeholder bid-ask may be shown that look outrageous.
Pimco multisector bond funds are;
OEF PONAX / PIMIX
CEFs PDI, PDO, PAXS
etc.
The same group of people will be managing this new ETF:
"PIMCO serves as the investment adviser for the Fund. The Fund’s portfolio is jointly and primarily managed by Dani…
At Schwab, I just use the linked Schwab Bank that has Bill Pay (as backup, as I use another Bill Pay as primary); it is also linked to some other accounts. If you sell Schwab m-mkt fund, the money is available for transfer to Schwab Bank the next mo…
I am familiar with broader definitions/interpretations of "cash". People can call anything whatever they feel like.
But in this thread, with the OP operating under regulatory constraints, and often repeating that his funds are NOT cash-alternative…
There was indeed a Japan Fund (SJPNX, etc; its catchy logo was stylish JF) that had many subadvisors over its life, 1990s-2014, Scudder, Fido, Nomura. In 2014, it was merged into Matthew's Japan MJFOX.
https://www.businesswire.com/news/home/20141007…
Low-cost active Capital Group ETF CGDV (newer, 02/2022- ) is more div-growth (e.g. VIG, etc) than current-div (VYM, SCHD, etc). The latter have been hurt by higher exposures to financials in this regional banking crisis.
I think it is the parent/holding co (for Brokerage, Bank, etc), or SCHW, that issued the bonds. Nonbank financials can own banks only with a holding co structure.
I have Fido, Schwab & also Vanguard brokerages. I try to follow what is going on with all of them.
It looks like at all players in the DC have now said that US debt default if off the table - McCarthy was dragging his feet. So, something will b…
Fido has several m-mkt funds. SPAXX is among core/settlement funds. But Fido has other higher yielding m-mkt funds with higher min & restrictions. Fido draws automatically from SPAXX first, & then from other Fido m-mkt funds.
Barron's article title says all: "Schwab Raises $2.5 Billion in Bonds to Shore Up Finances"
Nothing new in the article that is likely behind a paywall.
https://www.barrons.com/articles/charles-schwab-bond-offering-5be6b0a0?mod=bol-social-tw
Only m-mkt funds and T-Bills are "cash" alternatives. No other fund, including the ultra-ST bond funds, can formally serve that purpose.
But many posters do use ultra-ST and short-terms bond funds for liquidity. I was surprised that several ST bond…
May be it was just talk or hubris that Schwab could handle the flight of all uninsured deposits from its current liquidity (counting access to Fed BTFP & Fed Discount Window). It is issuing these bonds now at much higher rate than it could last …
M* has invested a lot in ESG - it owns the ESG rating firm Sustainalytics that has also generated some controversy over its rating methodology. The ESG ratings for funds are displayed in a tab on fund quote pages.
This seems a part of M* ESG/sust…
I have read that in case of no/delayed debt-ceiling resolution, the T-Bill may hit 8-10%. Just imagine the mark-to-market (MTM) chaos that will cause for m-mkt funds, bank capital, loan collaterals. May be the government will declare some MTM holida…
Several fund families now have 0% ER funds for advisory accounts only. Fido version is Fido Flex, TIAA version is class W, etc. I am sure that the firms get some cut from the advisory fees although this isn't visible to clients.
Fido also has retai…
Dollar diversification is one of the reasons for foreign exposure. Dollar has been strong for last several years, but may have peaked in September 2022. Since then, the pattern is of a decline (look at declining 50d-MA and 200-dMA) with wiggles up/d…
Good to know that this reclassification to "Gift" is possible after the fact. Of course, in your case, it was a mistake, but the solution could have been more messy.
Some used the Gift route while the I-Bond rates were high, but the rate now may no…
SPACs have been disasters, and the general IPO market is almost dead.
Premerger-SPACs is a niche area that benefits from the problems of SPACs - they have about a 2-yr window to find something OR refund the money. It is the latter part that benefi…
Regional bank KRE is in mid-30s again (as in early-May). I think that is good price for it - but after an initial position in early-May, I am not adding to it here. The downside is 2020/pandemic-low in mid-20s. The upside is if there is a comprehens…
The problem is that almost everyone thinks that a solution for the debt-ceiling problem will be found at the last minute. But then, most think (at least in the DC) that it is for others to fix it. A meeting of the main players scheduled for Friday w…
@Mark, congratulations.
In 3 months when he gets his Social Security number, open a grandparent 529 to get a head start on college. Recent changes have eliminated previous roadblocks for this.
Twitter is buzz with rumors - she is establishment, with high-level WEF connections, etc, while Musk is so anti-establishment. I think she is smart enough to make sure that any spur-of-the-moment actions or firing by Musk will be very costly to Musk…
