The iShares Core Total U.S. Bond Market ETF (the “Fund”) seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Barclays U.S. Aggregate Bond Index.
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Monday, March 11, 4:19 PM
Bill Gross cut Treasury holdings to 28% from 30% in his Total Return Fund in February, reports CNBC. He also took down his MBS holdings by a hair. Late last week, Pimco bumped its 2013 U.S. growth forecast to 3% from 1.25%-1.75% made at December's end. BOND is the ETF version of the Total Return Fund - here it is vs. AGG and BND since its April 2012 inception.
Comment![Financials]
Friday, March 8, 3:08 AM
The Fed is considering abandoning its plan to eventually sell the trillions of dollars of bonds it's bought and just let them mature instead. The move would prevent the disruption of markets that might come with big sales, and it would prevent any losses if and when interest rates rise, not to mention any subsequent criticism from Capitol Hill. There might be some economic benefits too.
8 Comments[U.S. Economy]
Tuesday, March 5, 10:28 AM
"Cash in the developed world is a terrible asset," writes Bridgewater in its (300-page) year-end investor note. "We would be short cash of all the major currencies," in continues - hedge fund shorthand for borrowing to buy risky assets. Previous: Ray Dalio and his co-CIO have made no secret of their bullishness this year.
1 Comment
Saturday, March 2, 8:43 AM
Along with the bull market are wealth managers continuing to ratchet up their exposure to equites at the expense of bonds and cash, according to Penta's latest survey which shows recommended stock allocations rising to 48% from 45% a year ago. Also of interest are the swings in foreign stock holdings - in favor in 2011, out in 2012, and popular again this year.
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Friday, March 1, 9:52 AMiShares Core Total U.S. Bond Market ETF (AGG)announces monthly distribution of $0.209. 30-day SEC yield of 1.73%. For shareholders of record Mar. 05. Payable Mar. 07. Ex-div date Mar. 01.
Comment![Dividends]
Tuesday, February 19, 11:24 AM
Very bearish on credit (see earlier), Howard Marks tells Bloomberg TV he's more constructive on equities, calling stocks less-loved than bonds. He's not seeing much opportunity in his forte - distressed credit - as the expected deluge in cheap assets from Europe never materialized.
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Friday, February 15, 11:18 AMEquity flows into domestic stock funds trickled to near-zero last week, far from the $3B-$8B range seen during January. World equity funds, however, continued to see large flows, $5.1B last week. BlackRock nixes the "great rotation" idea, noting large stock fund inflows are coming out of cash balances, not bond funds.
6 Comments
Tuesday, February 12, 11:52 AM
"You want to be borrowing cash and hold almost anything against it," says Bridgewater co-CIO Bob Prince on a client conference call. While not Tepper's "balls to the wall" line, it's a pretty loud statement from a master asset-allocator shop like Bridgewater. Previously Ray Dalio called this year a "game-changer" in which money would reallocated to risk assets.
2 Comments
Thursday, February 7, 8:13 AM
More from Grantham: Courtesy of the donkey-beatings, all global assets are once again becoming overpriced, but not uniformly so. Pockets of value can be found in emerging markets (EEM) and Japan (DXJ), and the great global franchise companies. Much of everything else is "brutally overpriced," with U.S. stocks selling at an implied negative 7-year imputed return ... As for fixed income - fugetaboutit!."
5 Comments[Global & FX, U.S. Economy]
Wednesday, February 6, 5:04 PM
Vanguard plans the launch of an international aggregate bond ETF - the Vanguard Total International Bond Index Fund - by the end of Q2. More enticing, the fund will have a 0.20% expense ratio - less than the originally slated 0.30% - and a planned 0.25% purchase fee has been eliminated.
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Tuesday, February 5, 9:58 PM
All Markel (MKL) CIO Tom Gayner ever seems to do is handily beat both equity and fixed-income benchmarks over time. 2012 was no exception, and his theme for 2013 (CC transcript) is the avoidance of credit and rate risk. He's taken the duration of Markel's bond portfolio down to a record-low 3 years and invested in only the highest-rated credits. "Taking credit risk for small amounts of basis points - it doesn't seem like that good an idea to me."
3 Comments[Financials]
Monday, February 4, 12:24 PM
Not buying the so-called "great rotation" out of bonds into stocks is JPMorgan's Eric Bernstein, who says fixed income's biggest fans - pension funds, insurance companies, and central banks - aren't just suddenly going to become stock investors. He expects continued moderate tightening of spreads.
3 Comments[U.S. Economy]
Saturday, February 2, 8:45 AMThe most exciting returns are to be had from an asset class where those who know it best love it least. What does it say when the first pick by Bill Gross at the Barron's Roundtable is gold? Gross isn't calling for an imminent bond bear market, but he doesn't see much upside either. For a fixed-income substitute, he recommends (what else) his BOND ETF, which trounced the competition in its first year and just added the use of derivatives to its toolbox.
21 Comments[Quick Ideas]
Friday, February 1, 3:34 PM
Like Dan Fuss, UBS apparently believes the fixed-income rally has run its course. The company reportedly plans to inform many of its brokerage clients - most of whom believe they're sitting in conservatively structured bond portfolios - that they're being reclassified as "aggressive investors." This should make for some interesting conversations between wealth managers and clients.
Comment![Financials, U.S. Economy, Global & FX]
Wednesday, January 30, 3:08 PM
Fixed-income is the most overbought in his 55-year career, says Dan Fuss, preparing to open a fund to U.K. investors (what a salesman). He's busy slashing duration along with exposure to emerging markets and junk bonds ("from a valuation point, ridiculous"). "For heaven's sakes, don't go out and borrow money to buy bonds right now."
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Saturday, January 19, 12:30 PM
"High-yield bond yields are lower than the S&P's earning yield for the first time ever," says a very bullish Oscar Schafer at the Barron's Roundtable (earlier). He says no one is talking about stocks at cocktail parties, but he does hear conversation about fixed income (that's some party). Pension funds hiding in bonds for "riskless returns" are in for a surprise.
7 Comments[Quick Ideas]