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The SPDR® Barclays Capital Aggregate Bond ETF seeks to provide investment results that, before fees and expenses, correspond generally to the price and yield performance the Barclays Capital U.S. Aggregate Index. Our approach is designed to provide portfolios with low portfolio turnover, accurate tracking, and lower costs.
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Country: United States
Friday, Aug 238:49 AMBullard: No reason to hurry taper
Friday, Aug 238:49 AM| 4 Comments
- The Fed can afford to be deliberate, St. Louis Fed chief Jim Bullard - speaking from Jackson Hole - tells CNBC. His dovish stance on the taper isn't news, but stands in contrast to Dennis Lockhart. Speaking earlier from the resort, Lockhart indicated his comfort with commencing the taper in September.
- Bullard's concern (a valid one, it appears) is that - in the market's mind - tapering and tightening are seen as one and the same. Indeed. Short-term interest rate markets are pricing in a Fed Funds rate 125 bps higher in September 2015 than now - either a great buying opportunity in fixed-income or the FOMC is not to be believed in its insistence of ZIRP deep into 2015.
- Short-duration Treasury ETFs: SHY, SHV, IEI, BIL, TUZ, FIVZ, DTUL, VGSH, DTUS, DFVS, DFVL, SST, ISTB, TBZ.
- Broad fixed-income: AGG, BND, LAG, SCHZ, BOND, SAGG, MINC.
Thursday, Aug 227:33 AMBond funds lose $30.3B in August
Thursday, Aug 227:33 AM| 5 Comments
- "These outflows mark an enormous shift for the bond world," says TrimTabs, which gathered the data. "A vicious circle of losses and redemptions as the bond binge unwinds could get nasty ... Lulled into complacency by a 30-year bull market, many investors probably did not understand the risks ... Now they seem to be reacting very quickly to losses."
- The withdrawals this month are the 3rd highest on record - June 2013 and October 2008 are #1 and #2 - and the month isn't even over yet. Bond funds YTD have seen $4B in redemptions, putting them on pace for their worst year since 2004's $7B loss. This comes against $1.2T of inflows from 2009-2012.
- It's estimated Pimco saw $7.4B in redemptions in August as Bill Gross' giant Total Return Fund (ETF version: BOND) has lost 3.6% YTD. Some Pimco closed-end funds having a rough run (with a couple now trading at rare discounts to NAV): PHK, PTY, PDI.
- DoubleLine is estimated to have lost $631M, but Jeff Gundlach's Total Return Fund has fallen just 1.1% YTD - better than 86% of its rivals. The DBL now trades at a discount to NAV.
- Broad bond ETFs: AGG, BND, LAG, SCHZ, BOND, SAGG, MINC.
Monday, Aug 193:57 AMAlmost $20B flees bond funds in August so far
Monday, Aug 193:57 AM| 4 Comments
- Outflows from U.S. bond mutual funds and ETFs have risen to $19.7B in August from $14.8B in July, TrimTabs says, making this month's figure so far the fourth-highest on record.
- Since the beginning of June, $103.5B has left bond funds, or 2.7% of total assets.
- The sell-off in bonds, which has been prompted by fears of Fed tapering, has sent Treasury yields higher, with the 10-year hitting 2.871% today, the highest for just over two years.
- "We are concerned that the Fed is starting to lose control of the bond market, which is not good news for the stock market or the highly leveraged U.S. economy," TrimTabs said
- Related ETFs: AGG, BND, LAG, SCHZ, BOND, SAGG, MINC, TRSY, PLW, GOVT, TLH, TLT, IEF, DTYL, DLBL, ILTB, TENZ, ITE, TLO, EDV, VGIT, VGLT, TMF, TYD, LBND, UBT, UST, TMV, TYO, DSTJ, DSXJ, SBND, PST, TBT, DTYS, DLBS, TBF, TTT, TYNS, TYBS, TBX, SHY, SHV, IEI, BIL, TUZ, FIVZ, DTUL, VGSH, DTUS, DFVS, DFVL, SST, ISTB, TBZ, TIP, STIP, LTPZ, STPZ, TIPZ, SCHP, IPE, TPS, TDTT, TDTF, RINF, FINF, INFL, DEFL, UINF, SINF, VTIP, TIPX, STPP, FLAT
Monday, Aug 1211:57 AMTaper all but certain amid fixed income excesses
Monday, Aug 1211:57 AM| 3 Comments
- "If Bloomberg reporters see it, so does the Fed," writes Josh Brown, commenting on a story about excesses in fixed-income (AGG. BND).
- So-called covenant-light loan issuance has soared to $155B YTD, beating the 2007 record of $96.6B. Junk bond (HYG, JNK) sales are up 24% YTD vs. the same period a year ago. Sales of payment-in-kind notes (PIK) - in which borrowers pay interest not with cash but with more debt - of $6.5B YTD are on track to top 2012's $8.1B. Bonds sold with the lowest tier CCC rating made up 10.3% of high yield bond YTD, the most since 2011.
- "Taper's a lock folks," concludes Brown ... "And it couldn't come soon enough."
- The 10-year Treasury yield is off 1 basis point today to 2.57%.
- Related ETFs: LAG, SCHZ, BOND, SAGG, MINC,HYG, JNK, PHB, HYLD, HYS, SJB, UJB, SJNK, ANGL, BSJG, BSJH, BSJI, QLTC, XOVR.
Wednesday, Jun 2610:56 AMStampede indeed: $61B exited fixed-income investments (AGG, BND) in June, estimates TrimTabs, storming past the previous record of $41B at the height of the financial crisis in October 2008. Pimco's giant Total Return Fund (the ETF version isBOND) is seeing outflows as it puts in one of its worst performances ever. The last time the fund saw money leaving was late 2011, just ahead of 2012's plunge in yields. |Wednesday, Jun 2610:56 AM| 4 Comments
Tuesday, Jun 252:41 AMThe stampede out of bonds has been particularly visible among retail investors, who have offloaded a record $48B worth of shares in bond mutual funds so far this month, although institutional investors have also been stepping bank. Greylock Capital CEO Hans Humes reckons the volatility is caused more by fear than rational analysis, although Nomura strategist George Goncalves says it's a reflection of leverage. "This is definitely more than a hissy fit. Some people are being forced to sell," says Goncalves. |Tuesday, Jun 252:41 AM| 1 Comment
Saturday, Jun 229:30 AMIt's "total capitulation" in fixed income (AGG, BND), says BAML's Michael Hartnett. The "blood bath" includes the largest-ever three-week rush of bond-fund redemptions, $2.6B leaving (2nd largest outflow ever) the Emerging Markets Bond ETF (EMB), and mortgage-backed securities (MBB), municipal bonds (MUB), and TIPS (TIP) funds each now showing net outflows for 2013. |Saturday, Jun 229:30 AM| 47 Comments
Tuesday, Jun 188:54 AM"The biggest contrarian play in the market today is assets linked to China (FXI, CAF)," says Michael Hartnett, summarizing BAML's latest Fund Manager Survey, which shows money flowing out of commodities (DBC) and emerging markets (EEM, DEM, VWO). Where's the money going? The eurozone and the U.S. Where it's not going is fixed-income (AGG, BND) - 50% of managers say they're now underweight bonds as opposed to 38% last month. |Tuesday, Jun 188:54 AM| Comment!
Tuesday, Jun 119:59 AMApple's iBonds are showing up in the holdings of numerous bond ETFs, including total U.S. bond market ETFs like AGG and corporate bond ETFs like LAG - both tied to indexes. The paper is also held by corporate bond ETFs LQD, SCHZ, ITR, LWC, and SCPB. Notably not owing any of the debt are the Pimco IG Corporate Bond Index (CORP) and Bill Gross' Total Return ETF (BOND). |Tuesday, Jun 119:59 AM| Comment!
Tuesday, Jun 41:17 PMFixed-income skittishness: Bill Gross' Total Return Fund - the world's largest bond fund - suffered its first monthly outflows since 2011 in May (2011 was the year Gross made an ill-timed short bet on Treasurys). The fund fell 2.15% last month, according to Morningstar. The ETF version of the fund (BOND) fell 2.4%. Benchmarks AGG (-2.2%), and BND (-2.1%) fared a bit better. |Tuesday, Jun 41:17 PM| Comment!
Friday, May 3111:23 AM"Mr. Market may be a manic-depressive, but he is also patient," says Britt Harris, CIO of Texas' $117B Teacher Retirement System. "He always waits to move until he has just about all of us on the train." The market cycle is getting ripe, says Harris, but he's not worried long-term. "Unlevered debt (AGG, BND) is virtually useless now as a long-term wealth management accumulator ... The probability that equity (VTI) will outperform bonds over the next 10-20 years is probably unusually high." A great read for allocation fans. |Friday, May 3111:23 AM| 1 Comment
Thursday, May 308:11 AMEven as he publicly said the bond bull market was over, Bill Gross got caught with his duration a bit too long. Pimco's Total Return Fund is off 1.8% in May, ranking it in the bottom-5 percentile of its peer group. The ETF version (BOND) is off 2.2% vs. AGG and BND each off less than 2%. BOND remains ahead of its benchmarks YTD. |Thursday, May 308:11 AM| 2 Comments
Tuesday, May 284:20 AMIt was an ugly day in fixed-income - (TLT -2.6%), (LQD -1%) - the 10-year Treasury yield up 15 bps to a 13-month high of 2.16%. Maybe more troubling for those borrowing short and lending long is a 12 bp jump in the 5-year yield to 1.01% (its up from 0.65% in a month), and a 4 bp pop in the 2-year yield to 0.28%. It was shoot first, ask questions last for many income plays such as mREITs (MORT -2.8%), equity REITs (HCN, HCP), utilities, and leveraged income funds (PHK). Owners of the leveraged short Treasury Fund (TBT +5.3%) throw a party, now up 16% in a month. |Tuesday, May 284:20 AM| Comment!
Monday, May 67:47 AMMore Buffett/CNBC: "Bonds (AGG, BND, TLT) are priced artificially," he says, and investors in long-term paper stand to lose a terrific amount of money. It echos weekend comments where he told Omaha concert-goers, "I feel sorry for people that have clung to fixed-dollar investments." |Monday, May 67:47 AM| 15 Comments
Thursday, May 27:35 AMThe number of bond funds owning stocks rose to 352 in Q1, according to Morningstar, up from 312 in Q4 and the highest level in nearly 2 decades. "We believe that traditional fixed income (AGG, BND) is at a historic level of being overvalued," says Forward Management, explaining to investors why it's moved from about zero of their funds in stocks to about 50% over the last year. |Thursday, May 27:35 AM| 5 Comments
Friday, Apr 1212:46 PMMore from Gundlach: Bond indexing has been a wonderful strategy for many years, but now the well-followed indexes (BND, AGG) have too short of a duration and are overloaded with Treasurys. The value is in non-traditional sectors like emerging markets (EMB), non-agency MBS, bank loans (BKLN), and global high yield (GHYG). |Friday, Apr 1212:46 PM| 4 Comments