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Post by chang on Nov 28, 2022 19:17:11 GMT
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Post by chang on Nov 30, 2022 12:53:37 GMT
Hoping davidsherman will chime in. Here is a link to Fido's site comparison of FNSOX v RPHIX (you might have to be logged in): link- FNSOX is yielding 4.70%, vs. RPHIX 3.68% (30D SEC) - FNSOX duration 2.57 yr; RPHIX 0.37 yr. - FNSOX expense ratio is 0.03%; RPHIX 0.89% (I know some people think this doesn't matter ... I'm not one of them.) No point in quoting any backward-looking metrics ... RPHIX has killed everything, and frankly I feel like a genius for selling all my bonds a couple of years ago and piling into RPHIX. But now it's time to look ahead to 2023. MMs and STB are no longer yielding 0.0001% .... but 4-5%. It was never my intention to hide out in RPHIX forever. Unless Mr. Sherman can provide a compelling argument, I will take the November disty and sell down to a foothold tomorrow. |
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Post by davidsherman on Jan 5, 2023 0:40:51 GMT
I do not check the Board often but you or any of the Big Bang Investors can always reach out to me at (914) 741-9600, david@cohanzick.com or david@crossingbridge.com
Many good funds for specific goals. That said, if a short-term duration is your calling .... Why FNSOX? We have some great solutions. All four of our ttps://www.crossingbridgeadvisors.com had positive returns in 2022. Plenty of good competitors as well. But FNSOX...Why?
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Post by davidsherman on Jan 5, 2023 0:47:41 GMT
Dividend and SEC Yield are not good proxies. And taking a monthly number to annualize is also ill advised. For example, you are not giving any credit to capital appreciation on investments that may generate a lower income which may also be more tax advantaged...think pre-merger SPACs for example. Also, dividend is affecting by currency hedge on non USD which may be added or detracted to income based on tax/accounting. So the NAV may have a capital appreciation as the currency appreciated with the corresponding hedge a detracting from income but net, net it is a wash. I recommend looking at rolling total returns such as rolling 12 month and compare to a rolling 1 year UST. The spread is your net pick-up for a historical basis. Although history is not indicative of the future, a rise in interest rates will likely improve attributable yield as reinvest and visa versa.
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Post by Chahta on Jan 5, 2023 1:02:29 GMT
I do not check the Board often but you or any of the Big Bang Investors can always reach out to me at (914) 741-9600, david@cohanzick.com or david@crossingbridge.com
Many good funds for specific goals. That said, if a short-term duration is your calling .... Why FNSOX? We have some great solutions. All four of our ttps://www.crossingbridgeadvisors.com had positive returns in 2022. Plenty of good competitors as well. But FNSOX...Why?
I like CBLDX. It has current yield of MM but potential for good gains. It had a great relative 2022. It is my step up from MM and Treasuries for 2023. |
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Post by chang on Jan 5, 2023 8:29:58 GMT
To move out a little longer on the duration curve. Yields currently peaking at 9-12 months. 6M Treasuries yielding 4.6+% and many here are patting themselves for locking in 10Ys at 4% a while ago. FNSOX is a safe 4% with virtually zero expense. A cheap, effective, parking lot, basically, while awaiting clarity on better opps. (I also bought a 6M T-bill a few weeks ago at 4.6%.) |
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Post by chang on Jan 5, 2023 8:32:47 GMT
Dividend and SEC Yield are not good proxies. And taking a monthly number to annualize is also ill advised. For example, you are not giving any credit to capital appreciation on investments that may generate a lower income which may also be more tax advantaged...think pre-merger SPACs for example. Also, dividend is affecting by currency hedge on non USD which may be added or detracted to income based on tax/accounting. So the NAV may have a capital appreciation as the currency appreciated with the corresponding hedge a detracting from income but net, net it is a wash. I recommend looking at rolling total returns such as rolling 12 month and compare to a rolling 1 year UST. The spread is your net pick-up for a historical basis. Although history is not indicative of the future, a rise in interest rates will likely improve attributable yield as reinvest and visa versa. I agree that capital appreciation is important, but I don't look for "value" or underpriced bond sectors that might enjoy a bounce, or try to time the bond market. The equity market gives me all of those opportunities, and more. I look for stability, ballast, and income in bonds. Hence, I do focus on dividend and yield. Also, with yields going from 0% to 4% in a matter of months, it seems to me that rolling returns and TTM figures are not that significant. |
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Post by davidsherman on Jan 5, 2023 12:49:45 GMT
I understand you want to move out the curve. Effectively looking (i guess at 6 mos - 2 yr?). I reiterate "Why FNSOX? We have some great solutions. All four of our ttps://www.crossingbridgeadvisors.com had positive returns in 2022. Plenty of good competitors as well. But FNSOX...Why?"
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Post by whisper on Jan 5, 2023 18:24:42 GMT
davidsherman, I love your funds and congratulations on your positively great returns in 2022. Do you plan to add a high yield municipal bond fund to your fund offerings? Count me in if you offer one! Thanks for being on this forum.
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Post by davidsherman on Jan 5, 2023 22:03:20 GMT
We evaluate fund launches based on whether:
1) A market asset class size can support a stand alone strategy
2) Our ability to offer something different that meets folks needs
3) The Fund expenses can support an appropriate net return to investors
4) We have a deep enough bench so it is not distracting
The muni space is an area we think meets the criteria. And, it is one of the reasons we have Steve Shachat on the team.
But, interest rates had been too low so the net return to the investor after Fund expenses was not a value proposition to investors.
Hopefully, interest rates will stay reasonable to allow consideration as well as pay folks for risk.
Currently, we only manage separate accounts with a $5MM min
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Post by Fearchar on Jan 5, 2023 23:51:26 GMT
Here are returns for Crossing Bridge funds:  Keep in mind, these returns are not adjusted for inflation. |
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Post by whisper on Jan 6, 2023 0:29:06 GMT
The beauty of these funds is their Risk Adjusted Returns. Per unit risk, RPHIX and CBLDX outperform their peers:
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Post by Chahta on Jan 6, 2023 0:31:38 GMT
 Graphically represented. davidsherman, I have to say you have a way with this type of bond asset. |
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Post by Chahta on Jan 6, 2023 1:05:17 GMT
Speaking of ballast...  |
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Post by chang on Jan 6, 2023 9:47:09 GMT
Agreed it’s an A-1 ballast fund, but I’m looking for a bit more, while still staying within the safety-income-ballast box. RPHIX has been incredibly consistent, but nobody expects it to be the #1 bond fund over 10 years. It served me extremely well when I needed it. Alas, the rear view mirror has never been less useful than now. |
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Post by FD1000 on Jan 6, 2023 15:20:29 GMT
If I could buy RPHIX instead of MM, I would, but it's closed at Schwab and Fidelity.
In Dec RPHIX made "only" 0.42% while good MM made 0.36%. Over the years RPHIX easily beat MM with the best SD I have seen.
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Post by Chahta on Jan 6, 2023 15:30:21 GMT
For me I am leaving Treauries behind now. Bonds are so beaten down they will rebound. CBLDX has an SEC yield of over 7%, current yield over 4%, but still pretty conservative.
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Post by chang on Jan 6, 2023 18:36:23 GMT
If I could buy RPHIX instead of MM, I would, but it's closed at Schwab and Fidelity. In Dec RPHIX made "only" 0.42% while good MM made 0.36%. Over the years RPHIX easily beat MM with the best SD I have seen. RPHIX over MM, sure. But is MM the best bet now? It was a while back, but now we can do better with reasonable safety. |
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Post by Fearchar on Jan 6, 2023 18:59:07 GMT
This morning I bought a 6 month Treasury Bill at Schwab on the secondary market with a yield of 4.81%.
I doubt anybody will find a MM currently over 3.8%.
Schwab is awesome compared to TDAmeritrade.
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Post by chang on Jan 6, 2023 19:31:29 GMT
Schwab is awesome compared to TDAmeritrade. I thought Schwab bought TDA? |
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Post by Fearchar on Jan 6, 2023 19:56:37 GMT
Schwab is awesome compared to TDAmeritrade. I thought Schwab bought TDA? They have, but TDA accounts have not migrated over yet. Believe that starts next month and will be over by the end of the year. I'm thinking of asking for moving my accounts sooner. TD has a lot of nice features, but they don't have good fill in the secondary T-Bill market. |
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Post by anitya on Jan 6, 2023 20:16:58 GMT
Let us say, one is holding cash in MM to buy back into equities or otherwise increase equity like risk in one’s portfolio. Is that cash better held at RPHIX or MM (up to 6 mo Treasuries)? How does davidsherman feel about investors using RPHIX in lieu of MM funds (e.g., short term redemptions / holding period)? |
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Post by FD1000 on Jan 6, 2023 22:13:33 GMT
If I could buy RPHIX instead of MM, I would, but it's closed at Schwab and Fidelity. In Dec RPHIX made "only" 0.42% while good MM made 0.36%. Over the years RPHIX easily beat MM with the best SD I have seen. RPHIX over MM, sure. But is MM the best bet now? It was a while back, but now we can do better with reasonable safety. Between trading, the only flexible option I have is MM. If I had RPHIX, I would use it instead. For my style, I never used CD or treasuries. |
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Post by richardsok on Jan 6, 2023 22:48:46 GMT
I thought Schwab bought TDA? They have, but TDA accounts have not migrated over yet. Believe that starts next month and will be over by the end of the year. I'm thinking of asking for moving my accounts sooner. TD has a lot of nice features, but they don't have good fill in the secondary T-Bill market. But TDA features thinkorswim -- a peerless trading suite. Hate the thought of losing it. |
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Post by fishingrod on Jan 7, 2023 0:09:54 GMT
This morning I bought a 6 month Treasury Bill at Schwab on the secondary market with a yield of 4.81%. I doubt anybody will find a MM currently over 3.8%. Schwab is awesome compared to TDAmeritrade.
VMFXX Federal MM at 4.21% and VMRXX cash reserves at 4.24%
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Post by Fearchar on Jan 7, 2023 3:36:28 GMT
fishingrod , Wow! Impressive that Vanguard is able to keep up as well as they do. Thank-you Now I need to be more careful!
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Post by FD1000 on Jan 7, 2023 5:00:05 GMT
This morning I bought a 6 month Treasury Bill at Schwab on the secondary market with a yield of 4.81%. I doubt anybody will find a MM currently over 3.8%.Schwab is awesome compared to TDAmeritrade. In about 2 minutes I found 5 funds. Schwab Value Advantage Money Fund® Investor Shares (SWVXX) is at 4.27% no min Schwab Value Advantage Money Fund® – Ultra Shares (SNAXX) is at 4.42%, one million min. Attachments:
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Post by Fearchar on Jan 7, 2023 11:23:51 GMT
Very good FD1000 , Hate to continue OT, but obviously I need to hone my search skills to more than just Google! Anyhow, my cash collection is currently averaging 4.53% to maturity. There is one small 7yr note that I'm including in the tally, but otherwise everything matures by 7/6/23. |
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Post by FD1000 on Jan 7, 2023 14:09:33 GMT
Very good FD1000 , Hate to continue OT, but obviously I need to hone my search skills to more than just Google! Anyhow, my cash collection is currently averaging 4.53% to maturity. There is one small 7yr note that I'm including in the tally, but otherwise everything matures by 7/6/23. That's really not cash. If you want to trade in/out, you can't do it. I never believed in holding cash for months-years, because I could always find better funds where to invest at 99+% of my portfolio. So, in my case MM is the only option that let me go in/out and trading big amounts. There is no way I would be satisfied with 4.5%. In just one week, YTD, many bond funds made over 2%. There is nothing special here. If MM pays over 4%, it means I can find funds that will make 6-7%. Sure, MM + notes are safer, while the ones I use fluctuate. I said it already last Nov-Dec, bond funds would do well in 2023, and if you know your bond funds, you can make over 10%. |
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Post by Fearchar on Jan 7, 2023 15:12:33 GMT
Very good FD1000 , Hate to continue OT, but obviously I need to hone my search skills to more than just Google! Anyhow, my cash collection is currently averaging 4.53% to maturity. There is one small 7yr note that I'm including in the tally, but otherwise everything matures by 7/6/23. That's really not cash. If you want to trade in/out, you can't do it. I never believed in holding cash for months-years, because I could always find better funds where to invest at 99+% of my portfolio. So, in my case MM is the only option that let me go in/out and trading big amounts. There is no way I would be satisfied with 4.5%. In just one week, YTD, many bond funds made over 2%. There is nothing special here. If MM pays over 4%, it means I can find funds that will make 6-7%. Sure, MM + notes are safer, while the ones I use fluctuate. I said it already last Nov-Dec, bond funds would do well in 2023, and if you know your bond funds, you can make over 10%.Actually at Schwab or E*Trade, TBills can be traded equivalent to cash. No so at TDA and only maybe at Fidelity or Vanguard. Yes; Bond funds can make 2% is a week, as they did last week, but they can also lose 32% is a year! So, the real challenge for investors is to identify an entry point. Are we there right now, or will we see seriously better prices in a few months or so? Trader talk isn't worth much. Thank-you |
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