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The "ETF bid" in which indexed parts of the high-yield bond market (likely to be owned by HYG...

The "ETF bid" in which indexed parts of the high-yield bond market (likely to be owned by HYG and JNK) rise faster than the rest when times are good works in reverse too as May saw the ETFs decline far more than NAV. What about for preferred shares? Investors pulled a relatively modest $300M from the $12B PFF in May and the fund was down 2.8%, but it's off another 1.6% since. "It stands to reason the same yield-seeking investors dumping HYG (and REM) are turning on PFF too," writes Brendan Conway.
Comments (3)
  • DeepValueLover
    , contributor
    Comments (8160) | Send Message
     
    (REM) remains a hidden gem and a major buying opportunity here.
    11 Jun 2013, 04:03 PM Reply Like
  • 153972
    , contributor
    Comments (692) | Send Message
     
    Bonds of companies are different from preferred shares of banks.
    11 Jun 2013, 06:45 PM Reply Like
  • Dave Kress
    , contributor
    Comments (5) | Send Message
     
    PFF was a large disappointment along with HIX, PCI, PAUAX and
    other yield rich "safe", "conservative plays whether bonds or preferreds. Even short matuity term bond funds like CSJ are misbehaving as the interest rate scare has
    permeated ANYTHING that spells like a yield play. Also note
    SJNK, and JNK. What is an investor to do? Sit on Cash which is
    also not worth holding? Retired investors are screwed taking even
    conservative risk to get some payout to live on.
    12 Jun 2013, 10:43 AM Reply Like
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