|
|
|
|
| BondsOnline.com: instant access to and extensive coverage of over 3.5 million stocks, bonds, indexes and other securities covering major and emerging markets and exchanges across the globe. |
|
|
| Bonds Online |
|
|
| 5/10/2013Market Performance |
| Municipal Bonds |
|---|
|
S&P National Bond Index
|
3.00% |
|
|
S&P California Bond Index
|
2.96% |
|
|
S&P New York Bond Index
|
3.13% |
|
|
S&P National 0-5 Year Municipal Bond Index
|
0.70% |
|
|
| S&P/BGCantor US Treasury Bond |
400.09 |
|
| More |
|
| Income Equities: |
|---|
| Preferred Stocks |
|---|
|
S&P U.S. Preferred Stock Index
|
848.03 |
|
|
S&P U.S. Preferred Stock Index (CAD)
|
636.26 |
|
|
S&P U.S. Preferred Stock Index (TR)
|
1,701.05 |
|
|
S&P U.S. Preferred Stock Index (TR) (CAD)
|
1,276.26 |
|
|
| REITs |
|---|
|
S&P REIT Index
|
174.07 |
|
|
S&P REIT Index (TR)
|
425.30 |
|
|
| MLPs |
|---|
|
S&P MLP Index
|
2,469.58 |
|
|
S&P MLP Index (TR)
|
5,428.50 |
|
|
See Data
|
|
|
|
 |
|
|
|
|
|
|
Fixed-Income Funds for the Adventurous |
TheStreet.com - Dec. 16, 2009 - by Don Dion
NEW YORK (TheStreet) -- Investors willing to take some extra risk to achieve higher returns from the fixed income portion of their portfolio should consider the Third Avenue Focused Credit Fund(TFCVX Quote).
While fixed-income investing has become popular amongst a broad range of investors, attractive yields are hard to find . Money market fund yields have steadily decreased throughout 2009, and the seven-day yield on taxable money-market funds has been holding steady at a record low of 0.03%.
Municipal bonds are becoming riskier, as regions of the country are bogged down by debt, and many investors fear Treasury bonds will fall in price as rates rise.
Popular ETFs like the iShares iBoxx High Yield Corporate Bond ETF(HYG Quote) and the SPDR Barcap High Yield Bond ETF(JNK Quote) have attractive yields , but also expose the investor to considerable risk.
Even in an improving economy, these investments have the risk of default, and disruptions in credit markets have caused these ETFs to trade at marked differences from their underlying values.
Fortunately, for risk tolerant investors, there's another market out there: the distressed debt market. Many companies are still bankruptcy risks or have their bonds trading at discounts. Investors looking for a fixed income investment that has a good risk/reward scenario should consider the Third Avenue Focused Credit Fund.
TFCVX managers can "go anywhere" in search of deals , from bank loans, high-yield, and convertibles, to holding stock as part of a restructuring. Instead of owning a fund in one of these sectors, investors have exposure to the ones the managers believe have the best chance of appreciation.
Third Avenue Focused Credit has the following stated objective: "Seeks total return from a combination of capital appreciation and interest income, by focusing capital in our highest-conviction ideas across the credit spectrum."
Manager Jeffrey Gary was the head of BlackRock's high yield and distressed investment team before joining Third Avenue. His approach is to "focus on our downside risk first and then our upside potential." He wants to concentrate the portfolio in 50 to 60 holdings, and will select securities based on what has the best upside potential, regardless of what type of security it is. Finally, the fund will be event driven. Gary has said, "We want an event that will drive price higher and reduce credit risk of our investment."
Troubled economic times can be great news for distressed debt because it offers the opportunity for a reallocation of assets, most notably when equity holders are wiped out in bankruptcy. The fund will run the gamut of distressed situations, from purchasing undervalued debt all the way to participating in bankruptcy restructurings.
Even though high-yield debt has recovered since March, credit spreads are still extremely wide, and bankruptcies are likely to continue in the next several quarters. These negative conditions can also provide investment opportunities, and TFCVX' open-ended structure allows this fund to be more nimble than a passively-managed ETF like JNK or HYG.
-- Written by Don Dion in Williamstown, Mass.
|
|
|
|
|
|
| Partner Market Place |
|
|
|
| Stuff to look at |
Yield and Income Newsletter: A must have for income investors. subscribe NOW
S&P Commentary and Newsletters: S&P
|
|
| BondsOnline Advisor |
Income Security Recommendation January 2013 Issue.
Keep up with monthly, in-depth coverage of fixed income market strategies, commentary, and insights as seen by our sources. Sign up for the free BondsOnline Advisor now!
Unsubscribe here [+] |
|
|
|
|
|
|
|
|
