Given the current rate environment, they really should rename the "High" term on this fund: High Income, really? A lil more than a 10Yr Tres yield For B Average Credit Debt is considered "High?"
READ the article. It will expain it. Buying opportunity will occur soon!
if there's any concern or discussion on the health of economy and if there's the slightest whiff of inflation ..
holders of these get nervous
Can anyone explain why the pps of FFRHX would be drifting down at this stage of the interest rate cycle? It's not just this fund as others I own in this space like BKLN show a similar slow downward drift. Not enough to erase the benefit of the dividends but enough to make one wonder what's going on here?
I own BKLN and SRLN, and am also going to put some into this. Going to spread my money around a bit in the bank loan products to diversify a bit (recommended by Morningstar). Morningstar also recommends EVBLX, which I may invest in as well.
except, we are not in rising rate environment for a long long time. what a joke comment. like i said in previous post, dont touch this until interest rate trend change and trend higher. only noob touch it now...
The 30yr is NOT an comparable benchmark & a "Good Job" for .70 bps isn't anything to cheer over, especially when underperforming the LL-Benchmark & having a yield thats NOT "High" per se, as compared to BKLN, SNLN, or High Yield funds, with similar rated debt instruments paying 200+ bps or more. The investment philosphy needs to adapt to the market & be maleable. Favoring a Cap size company, cash horde or credit quality can have benchmark swinging ramifications.
This fund theoretically should thrive in a rising rate environment, but until then & especially after '08s feeble performance, I'm ambivalent....
nah, there is no need to touch bank loan until interest rate change trend and trend higher. only noob touch it now.
Spreads on loans are wider than historical averages. Loans are one of the few fixed income investments trading at discount. Loans rank higher in capital structure and in event of default generally have a highe rate of recovery. These are some reasons to consider bank loan funds regardless of where interest rates are or are headed.
amid global interest rate downtrend. the fund manager done a pretty good job delivery yield better than current 30yrs yield. you should be grateful...
you guys are laughable. why touch bank loan mutual fund amid global interest rate downtrend? oh, you guys predict higher interest rate environment? what a laugh. why not wait til that happen? when that trend starts, you still have plenty time to go into bank loan. what a whole bunch of noobs... stop complaint already...
If she can get this fund to 10.00 NAV, I'll sell my position and stop posting. Otherwise, I will have to point out over and over again that CTM is, well, CTM!
that the market goes down, and so does this fund? And when the market goes up, the fund either goes down or stays flat?
Answer: CTM is incompetent.
While CTM was on vacation, the fund increased by 5 cents. What should this tell Fidelity?
Answer: It's time to fire CTM immediately!