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TCW Strategic Income Fund, Inc. (TSI) Message Board

  • o08o.ugh64w o08o.ugh64w Jun 27, 2013 2:29 PM Flag

    NAV to get whacked

    I don't see any way that it doesn't happen.

    Go to the TCW site and open the document for the fund and check the top 10 holdings. All high quality bonds with maturities 20 to 30 years out. Go to the treasury website and check the yield curve. See how rates for all maturities have increased over the past few weeks 15% to 40% in the shorter maturities of 1 to 10 years, and about 10% for 20 and 30 years. Rates are still at historical lows with 20 and 30 year well below 4%, and 1 to 3 years well below 1%.

    What happens as 20 and 30 year treasury rates go to 4%? It won't be pretty.

    It's time to look beyond the dividend being paid here because the share price can easily lose more than that very rapidly.

    I'm out - maybe I made $50 from the dividend - call it breakeven, I don't really care. I was scaling in, but reconsidering the data, decided I don't want to keep anything at risk here at this time.

    Good luck to those who remain.

 
TSI
5.54+0.02(+0.36%)Aug 29 4:00 PMEDT

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