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Vanguard High-Yield Corporate Message Board

  • niterunner_2000 niterunner_2000 Jul 31, 2009 2:45 PM Flag

    Japanese can't get enough of U.S. junk bonds

    To state the obvious, junk bonds have been on another of their patented runs the past few weeks, almost like a freight train. I wish there were more negatives as junk likes to climb walls of worries and right now I don't see too many worries. The economy seems to be improving, peak default rates keep getting racheted down, investors here and abroad continue to shovel money into junk bond funds, LIBOR rates recently hit all time lows, and more. I've been 100% in four junk bond funds and had toyed with the ideal of going on margin. But buying mutual funds on margin in a margin account is a bit different than equities so may pass on that. Still believe there is gas in the junk bond tank for the remainder of 2009 and into 2010 as junk bonds become the next investment bubble that defies gravity, but who knows. It seems that when we get the most confident is when we are the most vulnerable to some unexpected event or trend change. I just hope it's not next Friday's monthly employment numbers.

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    • There still may be some hope for VWEHX. The performance last week was on a par with most other hi-yield funds. However,they sure were late to the dance. Could be that the fund manager is shifting into more riskier issues given the explosion in junk. I'm sure he's getting an earful from investors who want better performance. This week could be a real good one provided the unemployment numbers aren't that high.

    • Notice how this guy switched the subject from "yield" to total return? He cherry picks the time period that he thinks will prove his point. Well,ok. Why don't you look at total return from March 15 to present and let me know what the numbers say? Or how about June 15 to now? You are a DUFUSS. You could have had a lot more money in your pocket if you would have swiched into SPHIX,BJBHX OR PRHYX as I did six weeks ago. But you love Vanguard. Problem is VG knows a sap when they see one. Keep buying those Treasuries Mr. Bogle. Blair loves your conservatism.

    • Rightstuff> In addition to a math course you might consider a course in Investing 101. Learn about Total Return, not just what was last month's dividend (as an example, the last 1 year total return for VWEHX was 3.08%, while SPHIX was only 2.59%).

      You are spending way too much time on fund you don't like.
      Either you really need to get a life, or you must be a salesman.

      Either way, I'm pushing the "ignore user" button on you.

    • PS: Rightstuff>
      Aren't you the nut who keeps harping about the "Treasury effect", or is it Derrilip? Or both of you - maybe two nuts in the same shell? Anyway, go back and recalculate your divs but take a math course first.

    • Not referring to SEC yield. Get a grip.

    • Excuse me Ace. I guess you don't understand how bond yields are calculated. I really don't care what the current quoted yield is. This is the SEC yield which assumes all bonds are held to maturity. Of course, this NEVER happens with a mutual fund. Bonds are constantly being bought and sold and rarely are held to maturity. All I care about is what the dividend yield was when I bought it. This determines how much money I'm getting every month which is determined by the number of shares I own. If I put $1000 into a fund at $5 per share I get 200 shares. If the NAV rises to $10 I only get 100 shares. Therefore,I would get less of a dividend when the share price rises because the div yield is going down accordingly. The reason that the two funds have a lower yield than VWEHX is because the NAV of those funds has risen MORE than VWEHX. VWEHX is,thus,behind these other funds in performance. I would suggest YOU do your homework before you call me any names. My funds are paying a lot more in div's each month than I would have gotten if I had stayed in VWEHX. YOU ARE THE MORON and YOU losing money with VWEHX.

    • The yield for two of the three funds you mentioned (SPHIX and PRHYX) are actually lower than VWEHX. Only one is higher (BJBHX).

      However, you stated one thing which is totally correct-

      You're a moron.

    • MY div's from SPHIX,PRHYX AND BJBHX were a heck of a lot higher than what you got with VWEHX. Even Adam Bold of the Mutual Fund Store gives VWEHX a thumbs down. I guess he's a moron too?

    • Great. Another moron........or maybe the same moron. Thank god for the "Ignore user button."

    • Thanks rightstuff!
      Yes, you are a basher who cant back up his claims
      what are you posing?
      If you do work for fidelity (whom I LOVE) then my trading commisions are paying your salary (in full)
      I might have to talk to them regarding YOUR "past performance"
      all the funds you pump have their place or they wouldnt exist...
      This fund does a fine job also.
      what IS your point and agenda in bashing this?

      Loving my "junk" since March 12 and I have to thank niterunners posts for educating me re junk
      I thank myself for my perfect timing.

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