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PIMCO Broad U.S. Treasury Index ETF (TRSY)

- NYSEARCA
TRSY is defunct since March 15, 2014. Lack of investor interest
  • Mar. 4, 2014, 11:33 AM
    • The Pimco Broad U.S. Treasury ETF (TRSY -0.1%) has managed to garner just $8M in assets since opening in 2010 despite an expense ratio of 0.15% - seemingly cheap for the laddered strategy it offers. It will close on March 14.
    • A bond ladder is a strategy to hopefully reduce rate risk by holding durations all along the yield curve, and Roger Nusbaum suggests the fund's failure could be one of marketing as the ETF's plain vanilla name makes it look like just another Treasury fund.
    • The PowerShares 1-30 Year Laddered Treasury Portfolio (PLW -0.5%) - three years older than TRSY - has $144M in assets and an expense ratio 10 bps higher than Pimco's offering.
    | Comment!
  • Mar. 3, 2014, 2:48 PM
    • The Pimco Broad U.S. Treasury Index ETF (TRSY) will be shut down on March 14th after failing to accumulate sufficient funds; this was the reason given in the filing.
    • Since its launch in October 2010, the fund has gathered just $8 million in assets, while the iShares U.S. Treasury Bond ETF (GOVT) and Invesco's 1-30 Year Ladder Portfolio (PLW) have $120 and $144 million in assets respectively.
    • Other Pimco Treasury Funds: TUZ, TENZ, ZROZ, FIVZ
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  • Jan. 9, 2014, 8:47 AM
    • "If you’re on the wrong end of an interest rate teeter totter headed up, it makes you wonder why anyone would own bonds or at least why anyone would own longer-term bonds," writes Bill Gross (BOND) after closing out a rough 2013. "That question and its answer are the key for 2014."
    • Stop worrying so much about that number coming out on the first (occasionally 2nd) Friday of each month, he says, as inflation, not unemployment will be the critical statistic for gauging Fed policy going forward (the PCE is release around the 20th each month). There will be no policy hike until both unemployment and inflation breach their thresholds, says Gross, and they're not even thresholds; "they're forks in the road that may, or may not lead in a different direction." At the moment, annualized PCE inflation of 1.2% is nowhere near the target of 2%.
    • Gross isn't calling for a bond bull market, but - if he's right about inflation - it will be realistic to expect positive fixed income returns in 2014.
    • Related ETFs: AGG, BOND, BND, BSV, BIV, BLV, SCHZ, PLW, GOVT, LAG, SAGG, ILTB, ISTB, TRSY, GVI, GBF, FWDB, MINC, GIY, AGND, AGZD
    | Comment!
  • Dec. 18, 2013, 2:22 PM
    • "The Committee sees the improvement in economic activity and labor market conditions ... as consistent with growing underlying strength in the broader economy," the FOMC says, adding that the decision to scale back QE by $10B per month is based on "the cumulative progress toward maximum employment and the improvement in the outlook for labor market conditions."
    • Although the Committee says it will "likely reduce the pace of asset purchases in further measured steps [should] incoming information support [the] ongoing improvement in labor market conditions and inflation moving back toward [the] longer-run objective," the Fed notes that asset purchases are "not on a set course."
    • FOMC also says it "anticipates .. that it likely will be appropriate to maintain the current target range for the federal funds rate well past the time that the unemployment rate declines below 6.5%."
    • Updated FOMC projections: 2014 PCE inflation now seen at 1.4-1.6% (from 1.3-1.8% in September); 2014 GDP now seen at 2.8-3.2% (from 2.9-3.1% in September); 2014 unemployment rate now seen at 6.3-6.6% (from 6.4-6.8% in September). Full release
    • 10-year yield is at 2.91% versus 2.87% just prior to the announcement.
    • Dow (DIA +0.9%), S&P (SPY +0.6%), and Nasdaq (QQQ) all staged brief rallies on the news but have since retraced a bit. Gold (GLD +0.3%) fell sharply initially but recovered.
    • ETFs: TBT, TLT, TIP, TMV, SHY, IEF, TBF, PST, EDV, TTT, TMF, VTIP, TLH, IPE, ZROZ, SBND, IEI, SCHP, DLBS, TYO, LTPZ, DTYS, STPZ, STPP, VGLT, TIPZ, UST, BIL, SHV, STIP, PLW, GOVT, FLAT, UBT, TBX, TLO, VGSH, VGIT, RINF, GSY, DTYL, LBND, SCHR, SCHO, TYD, ITE, TYBS, TPS, TRSY, TENZ, DTUL, TDTT, TUZ, SST, INFL, DTUS, FIVZ, TBZ, DFVL, FINF, UINF, DLBL, DEFL, DFVS, TIPX, TDTF, TYNS, SINF
    | 7 Comments
  • Dec. 12, 2013, 6:53 PM
    | 26 Comments
  • Oct. 21, 2013, 12:56 PM
    • Short Treasurys for much of the year, Caxton went to neutral as soon as Larry Summers dropped out of the race for Fed chief, and is now long across the curve, says the hedge fund's chief Andrew Law. "For whatever reason," the U.S. economy has been unable to "reach escape velocity ... tapering is off the table for the foreseeable future." He notes GDP growth has averaged 2.2% over the last four quarters with zero rates and massive QE. Why would growth accelerate now? He believes the Fed looked at the same thing at its last meeting and realized it couldn't taper.
    • "There are no incentives for the corporate world to go out and spend – that, and housing, are critical ... The Fed is very clearly now seeking to lower interest rates."
    • On Europe, it's better, but he's not overly excited. He's keeping an eye on the euro (FXE) and expects $1.40 to be the line at which the ECB responds both verbally and maybe with a cut in rates. "The marketplace has spent the last 4 years trying to sell the euro and not quite understanding why it hasn’t collapsed to the teens… maybe now (longs) will have their moment."
    • Japan: Caxton cashed in on the yen devaluation and big stock rally earlier this year, and remains moderately bullish.
    • U.K.: There is no housing bubble. The country needs another 100K new homes per year. "My forecast would be that the BoE is not worrying too much about the housing market."
    • Law took over from Bruce Kovner at Caxton in 2008.
    • Treasury ETFs: TLH, TLT, IEF, DTYL, DLBL, ILTB, TENZ, ITE, TLO, EDV, VGIT, VGLT, TMF, TYD, LBND, UBT, UST, TMV, TYO, SBND, PST, TBT, DTYS, DLBS, TBF, TTT, TYNS, TYBS, TBXTRSY, PLW, GOVT.
    • Euro ETFs: FXE, ERO, ULE, URR, EUO, DRR, EUFX.
    | 10 Comments
  • Sep. 10, 2013, 4:35 PM
    | 3 Comments
  • Aug. 19, 2013, 3:57 AM
    | 4 Comments
  • Aug. 16, 2013, 8:24 AM
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  • Aug. 13, 2013, 8:38 AM
    | 1 Comment
  • Jun. 30, 2013, 2:10 AM
    Central banks sold a record $32.4B in U.S. Treasurys (SHY) in the week to June 26 - taking their holdings to $2.93T - for the third weekly outflow in the past four weeks. Meanwhile, bond funds tracked by data provider EPFR Global experienced total redemptions of $23.3B last week. The numbers provide some color to the sharp rise in Treasury yields since Ben Bernanke first signaled the Fed would start tapering QE.
    | 2 Comments
  • Mar. 17, 2013, 4:06 AM
    The Treasury is investigating whether investors are accumulating government bonds in order to boost prices after $78.87B worth of 10-year notes used as collateral in repo market weren't returned to the loan counter-party on Monday. Over the week, the cost of borrowing Treasurys for use in the repo market or for short sales jumped more than three-fold, only easing after a government auction.
    | 3 Comments
  • Jan. 2, 2013, 4:47 AM
    The amount of debt that the G7 and four of the BRIC nations will need to refinance this year will fall by $220B to $7.38T, Bloomberg calculates, although the amount the U.S. will have to cover will increase to $2.9T from $2.6T. Overall government debt returned 4.5% on average last year, led by a 78% gain on Greek bonds. However, yields on major sovereign debt are expected to remain low.
    | Comment!
  • Aug. 20, 2012, 4:51 AM
    The gap between bank deposits and loans is rising at the quickest pace in two years, coming in at $1.75T on August 8, when deposits stood at $8.87T and lending $7.12T. The gap is well above the $100B average in the 10 years before credit markets started breaking down. Banks are using the money to snap up U.S. debt, buying $136.4B worth this year, more than twice the $62.6B for all of 2011. It's unsustainable, says an analyst.
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  • Jun. 25, 2012, 5:49 AM
    Bunds are losing some of their safe haven status, as investors wonder whether Germany can continue to bear the burden of backstopping the eurozone crisis. U.S. Treasurys are likely to benefit, as few other havens remain; Switzerland and Japan are trying to deter investors to keep their currencies from appreciating, while Denmark and its northern neighbors aren't large enough to be true havens.
    | 2 Comments
  • Jun. 13, 2012, 3:14 AM
    Pimco's Total Return Fund increased its exposure to U.S. Treasury-related securities to 35% in May from 31%, and raised its leverage on the $261B portfolio.
    | 2 Comments
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TRSY Description
To provide total return that closely corresponds, before fees and expenses, to the total return of The BofA Merrill Lynch Liquid US Treasury IndexSM
See more details on sponsor's website
Country: United States
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