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Dec. 1, 2014, 10:23 AM| 4 Comments
Oct. 1, 2014, 1:15 PM| Comment!
Sep. 29, 2014, 9:27 AM
- Also benefitting from the rush of money out of Pimco is DoubleLine Capital which saw its biggest inflow of the year on Friday, taking in "hundreds of millions of dollars," says CEO Jeff Gundlach.
- Mutual funds of note: DBLLX, DELNX, DBLEX, DLENX, DBFRX, DLFRX, XDSLX, DFLEX, DLINX, DBLSX, DLSNX, DBLFX, DLFNX, DMLAX, DMLIX, XDBLX, DBLTX, DLTNX
- DoubleLine CEFs: DSL, DBL
- In the wake of Bill Gross' departure, Pimco (OTCQX:AZSEY) is at pains to show the Total Return Fund (PTTAX, BOND) was always a team effort, and new managers Scott Mather, Mark Kiesel, and Mihir Worah put out their thoughts in a Sunday night update: “The fact is that no one individual could possibly know the ins and outs of every corner of the bond market," says Mark Kiesel. "Bill Gross relied on us - along with the firm's 240 other portfolio managers."
- Scott Mather: "It's important to keep in mind that most the really 'big' investment decisions at Pimco are not made by individual PMs or even PM teams, but by the Investment Committee."
- As for the new team's thoughts on the market, Mather says the "New Neutral continues to anchor our views."
Sep. 2, 2014, 10:24 AM| Comment!
Aug. 1, 2014, 9:31 AM| 1 Comment
Jun. 2, 2014, 9:32 AM| Comment!
May. 1, 2014, 9:09 AM| Comment!
Apr. 5, 2014, 9:10 AM
- The average discount on close-end bond funds is a historically large 6.5%, writes Brendan Conway in Barron's, and the discount on the roughly dozen funds launched in the last year is even higher at 8.6%. Investors are likely correct in being wary of new products - especially at a time when interest rates look to be headed higher - but a couple of funds from the class of 2013 may be worth a look.
- "We like fear, and we like dislocations in the marketplace," says Patrick Galley, CIO of RiverNorth Capital Management. He's a buyer of Pimco Dynamic Credit Income Fund (PCI), managed by rising star Dan Ivascyn. PCI is up 2.6% YTD, but NAV is higher by 4%, and buyers get a discount to NAV of 8% and a distribution rate of greater than 8%.
- Galley isn't alone on this one. Boaz Weinstein's hedge fund has piled in as well, becoming PCI's largest single owner. Weinstein has bought major chunks of other funds as well, and Pine River Capital picked up a big slice of another of the class of 2013 - the DoubleLine Income Solutions Fund (DSL). The entry of hedge funds into the $250B closed-end arena - a market too small for most institutional investors - is another sign of bargains to be had.
- David Tepper of Tepper Capital Management (not that Tepper) has identified the "1,000 x 1,000" club - bond CEFs trading at discounts of 10% or more which have seen NAVs rise by 10% or more over the last year. One of the class of 2013 makes the list - the BlackRock Multi-Sector Income Trust Fund (BIT).
Apr. 1, 2014, 12:43 PM| Comment!
Feb. 27, 2014, 3:29 PM
- Typically dominated by individual investors seeking a yield, closed-end debt funds have become the latest hedge fund playground as they seek to profit from assets trading at their widest discounts to NAV since the financial crisis.
- Behind the discounts was last year's big jump in interest rates which sent the value of fixed-income assets way down. Too far down, say the hedge funds.
- Boaz Weinstein's Saba Fund (known among other things for landing the London Whale), has amassed $847.3M in publicly traded funds since beginning to buy last year. Pine River Capital has loaded up on nearly $160M worth.
- Among Weinstein's purchases are $75.7M of Pimco's Dynamic Credit Income Fund (PCI +1%) - making Saba the largest holder - $78.5M of BlackRock's Corporate High Yield Fund (HYT +0.3%), and $41.5M of BlackRock's Credit Allocation Income Trust (BTZ +0.6%).
- Also a large owner of PCI and HYT, Pine River has 1.4M shares of DoubleLine's Income Solutions Fund (DSL +1.6%).
- The magnitude of these purchases is unprecedented, says Warren Antler who specializes in CEF analysis at AST Fund Solutions.
Dec. 10, 2013, 5:33 PM
- Rising interest rates have killed refinancing - eliminating prepayment risk - and home prices continue to move higher, a particularly bullish cocktail for non-agency MBS, says Gundlach (DBL, DSL), who finds those securities vastly more attractive than high-yield paper (HYG, JNK).
- Asked about Annaly (NLY) - an owner of agency MBS - Gundlach says he likes it and likes its management, but won't be buyer until after the dividend is cut to something more in line with what core earnings might be.
- "Something for Nothing" slides and webcast
- Non-agency MBS players include: MTGE, MFA, DX, TWO
- Related mREIT ETFs: REM, MORT, MORL
- High-yield ETFs: HYG, JNK, HYS, HYLD, SJNK, PHB, SJB, ANGL, XOVR, UJB, QLTC, SHYG
- Previous: "Freaking out" about interest rate risk
Nov. 1, 2013, 8:20 AM| Comment!
Sep. 30, 2013, 5:40 PM
DSL vs. ETF Alternatives
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