iShares Lehman 1-3 Year Treasury Bond (SHY)

All Comments on SHY

  • commenter
    GKM
    Aug 27 05:33 PM
    Bond Expert: Wednesday Wrap [view article]
    So based on this, this is the scary scenario I had been expecting. The smart and fast money is going into paper in preparation for the coming deflation. This has been helpful John to know that the trades I've been planning to put on are the right ones. It also goes to affirm that generally the obvious trades are obviously wrong. Reply
  • commenter
    Nidhi
    Aug 27 11:59 AM
    My Website
    Interrelation of Asset Classes: A Few Market Themes [view article]
    thats a good point by bbzz24 that Leveraging and Hedging has mixed the different asset classes.. Reply
  • commenter
    Owen
    Aug 27 10:08 AM
    Interrelation of Asset Classes: A Few Market Themes [view article]
    rogerk2, you're in the wrong thread. Here are the GLD conspiracy theory articles you're looking for:

    seekingalpha.com/artic...
    seekingalpha.com/artic...
    seekingalpha.com/artic...
     Reply
  • commenter
    rogerk2
    Aug 27 03:21 AM
    Interrelation of Asset Classes: A Few Market Themes [view article]
    GLD is run by one of those big banks. How do we know they haven't "swapped" the fund's bullion for paper assets, to squeeze out a little extra bank profits? Reply
  • commenter
    bbzz24
    Aug 26 03:05 AM
    Interrelation of Asset Classes: A Few Market Themes [view article]
    not due to increasing globalization but due to increasing use of leverage all asset classes become interwined due to the need for collateral in the prime broker account. Reply
  • commenter
    Evan P
    Aug 25 08:07 PM
    My Website
    Tweaking the Global T-Bill Theory [view article]
    This is actually an interesting idea...before I got into stock-picking, I actually had about 50% of my portfolio in the Oppenheimer International Bond Fund (OIBAX). It has a 12.14% annual return and a 6.90% yield as of July 31st 2008....and yes, it IS a bond fund. Reply
  • commenter
    sanserve
    Aug 19 08:52 AM
    My Website
    Why I'm Against Fixed Income ETFs [view article]
    All Index funds are risky, especially income funds. Use Managed Closed End Funds instead. Here's some recent research with real ife investment portfolios:

    Good News For Income Investors



    Looking for good news in today's markets is like searching for the proverbial needle in a haystack. Needless to say, practically all investment grade equities and nearly all closed end funds that specialize in providing regular recurring monthly income have been reduced in market value by this prolonged correction. The quake has spread in all directions from its financial epicenter, and the mounting doom and gloom has taken its toll on even the most rational investment decision makers. Try to keep in mind that the purpose of income investing is the income that your portfolio produces not an increase in the securities' market values---



    So here's the good news (and for anyone with a 40% or higher income asset allocation, or an income portfolio being used for living expenses), it really is very good news. Base income levels, from the beginning of the stock market correction in June '07 until mid-July '08, have barely changed at all. In fact, they have probably risen in properly asset allocated portfolios. I have examined the regular recurring monthly income distributed by 56 taxable income CEFs and 61 tax-free income CEFs, and the conclusions are pretty remarkable.



    In spite of the fact that the vast majority of my favorite monthly income producers are lower in market value than I would like, the amount of income they are distributing to shareholders has not moved lower meaningfully--- even though the Federal Reserve has reduced interest rates by approximately 60% during the past twelve months. Here are the numbers: (1) 48% of the taxable-income CEFs are distributing precisely the same amount per share as they did a year ago. Fourteen issues have increased their payouts and fifteen have reduced them.



    The net result is a decrease of just fourteen cents (2.5% of the total monthly payout). The average current yield on the portfolio, as of mid July '07, is 9.86% without considering any capital gains distributions. Additionally, the group is selling at market prices that reflect an average discount of nearly 11% from NAV. Is that special or what? The bonds, preferred stocks, government securities are priced 11% below their current market values.



    (2) The numbers are similar with regard to the 61 tax-free income CEFs: 46% have not altered their payout over the past twelve months; eighteen have reduced their payout slightly, and 15 have increased the monthly dole. The net difference for the group over the past year is less than one cent, or a percentage change of two-tenths of one percent. Remarkable. This group is selling at an average discount from NAV of 9.1% and has a current tax-free yield of 5.51%.



    (3) Of 117 individual issues, about half have produced stable income. The others have accounted for a total payout reduction of less than 15 cents--- a measly 1.7%. Why is this amount of little consequence? Two reasons really.



    First of all, a properly asset-allocated income portfolio does not disburse all of the base income it receives, so there is income available to reinvest in more shares of income producing securities. This process assures a growing cash flow to calm your fear of rising prices. The other reason is a bit more hypothetical. The Fed has lowered rates significantly, a process that normally produces higher prices for income securities. Eventually, those lower interest rates (even if global pressures convince politicians to take back some of the reductions) should produce higher prices (i.e., profit taking opportunities) in these securities.



    Admittedly, even if your asset allocation has been fine tuned for years, lower portfolio market values in this area make stock market valuation shrinkage feel even worse. But the value of stable cash flow becomes painfully clear for investors who misguidedly depend on capital gains for their spending money. Properly asset allocated portfolios contain enough base income generators to pay the bills. The purpose of capital gains is to produce proportionately more base income generators.



    The purpose of this email is simply to bring some needed sunlight into an investment environment that is far gloomier than I think it needs to be. If you want the details, you'll have to request them personally.





    Steve Selengut

    www.sancoservices.com

    www.kiawahgolfinvestme.../

    Professional Portfolio Management since 1979

    Author of: "The Brainwashing of the American Investor: The Book that Wall Street Does Not Want YOU to Read", and "A Millionaire's Secret Investment Strategy"
    Reply
  • commenter
    CrossProfit
    Aug 18 02:14 PM
    My Website
    Fixed Income: Little Value in Treasuries, Preferred Financials Yielding 8% [view article]
    thoroughbred,
    Yes, it makes sense for now.

    Also, nice article.

    CrossProfit     Reply
  • commenter
    thoroughbred
    Aug 18 10:09 AM
    Fixed Income: Little Value in Treasuries, Preferred Financials Yielding 8% [view article]
    Dunn, I had both the GM pfd as well as the F pfd, I just have zero confidence in either, and beside that, those 2 have gotten many recommendations as a better place to hide if you want long term exposure to GM and F so I think there are many novice investors there, if it starts to drop I don't believe they will hold for the long term and would make the drop much worse than it would need to be. Does that make sense? Reply
  • commenter
    oldman
    Aug 11 10:06 AM
    Fixed Income: Little Value in Treasuries, Preferred Financials Yielding 8% [view article]
    thoroughbred, do you have GJM- GMAC preferred around 11.75, yielding 16%? Are they going away? Reply
  • commenter
    philq
    Aug 11 09:35 AM
    Bond Ladders vs. Layering with Bond Funds [view article]
    Am I missing something? If I want bonds I just buy nuveen muni-bond closed-end etf's that now yield 5.5-6% federal tax free--like nqs. I think I have seven or eight of them. Avg duration about 7 years. They have some problems with leverage/auction-rate stuff but nuveen will cut through that I think---they've been around awhile. Reply
  • commenter
    Chemist29
    Aug 10 10:59 PM
    Fixed Income: Little Value in Treasuries, Preferred Financials Yielding 8% [view article]
    so remind me why anyone would not do a simple etf like TIPS which is AAA instead of something with less yield? Reply
  • commenter
    ikkyu
    Aug 10 03:07 AM
    Bond Ladders vs. Layering with Bond Funds [view article]
    Greetings Mr. Shaw,

    You are as gentlemanly, as you are informative. Boy, ETFs come out so fast it is hard to stay abreast. I hope it sees some volume too.

    Do you have any recommendations about good bond brokers outside of Treasury Direct, say for Zero coupon bonds and corporates? There is an article on here by Larry Swedroe about the hidden mark-up on bonds in the secondary market that was a real eye-opener:
    seekingalpha.com/artic...

    Thanks. Cheers from Osaka,
    john     Reply
  • commenter
    jakedeez
    Aug 09 01:06 PM
    Fixed Income: Little Value in Treasuries, Preferred Financials Yielding 8% [view article]
    WPK is my number four holding (3.02%) after GE (10.45%), money market (7.33%), a Jan09 4.5% CD (6.79%) and FCX (3.32%) After that is BRKB 2.71%, CTEW 2.29%, KO 2.16%, DD 1.6%, USB 1.55%, and then DTT the other pfd I still hold at 1.53% Reply
  • commenter
    jakedeez
    Aug 09 01:03 PM
    Fixed Income: Little Value in Treasuries, Preferred Financials Yielding 8% [view article]
    I held over 12 financial pfds this year going into July, I felt like they were a better place to hide then most financial equities. They day after I got scared and liquidated in my last financial equity (GS) at 164 I realized I was wrong. I took a hard look at my positions, I closed all but two of my pfds and switched into bank stocks... mostly USB, BAC, and on a lark I bought some WB. I am still holding them, although I have traded WB back and forth once. For PFDs? I have taken what was an average position size of about 1% of my portfolio and liquidated most of them to buy the equities... I have also however boosted 2 particular PFDs into top ten holdings. Reply
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