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Post by davidsherman on Oct 25, 2022 21:19:16 GMT
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Post by anitya on Oct 25, 2022 22:46:17 GMT
Thanks, David. Could you please provide insight into what causes the YTW yield on Dry Powder for RSIIX to be about half of that for RPHIX? On a separate note, is your firm contemplating similar theme strategies in the tax exempt Muni space? Thanks. |
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Post by retiredat48 on Oct 25, 2022 23:26:58 GMT
davidsherman,...thanks for the interesting bond charts. New for me was a chart-display of the corporate maturity extensions, due past refinancing using low rates. R48
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Post by johnsmith on Oct 26, 2022 1:08:41 GMT
Thanks. That was brilliant. |
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Post by davidsherman on Oct 26, 2022 1:42:58 GMT
Dry Powder is debt expected to roll-off within 90 days plus SPACs. I would caution folks from focusing too much on Dry Powder YTW since the maturities are so short which will leave the Fund shortly and may not reinvest at a similar rate. Further, the Dry Powder YTW is calculated on a snapshot date with short maturities which could result in unrealistic high or low YTW since small price movements and bid/ask spreads may have a material yield impact since the discount or premium may be amortized over days rather than months or years.
More specific to your question....at quarter-ending 3Q22, Short Term High Yield had a larger SPAC holdings as well as a greater weighting of an opportunistic purchase of called bond(s) in comparison to Strategic Income which has a significant weighting in commercial paper. I do not think the reported figures should be viewed as a trend.
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Post by davidsherman on Oct 26, 2022 1:48:08 GMT
Cohanzick's resident muni expert, Steven Shachat was the former portfolio manager of the Alpine Funds and manages separate accounts in low duration municipal bonds for Cohanzick clients. In the past, low rates were too low and spreads too tight to justify the expense ratio of a mutual fund structure. In a more normalized world, a low duration muni fund may be considered to launch.
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Post by anitya on Oct 26, 2022 17:16:13 GMT
davidsherman, Thanks for the detailed reply. Since its inception in 2010 RPHIX has performed consistently. Pretty good track record. I think chang owns a big %age of PV in it. If Mr. Shachat managed a Muni fund else where, it will be great if you could please let us know its ticker. Please post here when you decide to open a MUNI fund.
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Post by davidsherman on Oct 26, 2022 18:59:34 GMT
Steve Shachat was the lead portfolio at Alpine Funds on their muni funds. He joined Cohanzick in 2017. Currently, he manages individual accounts but no mutual fund at this time. Happy to connect.
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