FMD Capital Management

Posts Tagged: BOND

Your Bonds Aren’t Crashing

Written by David Fabian, February 14th, 2018

The inherent fear of rising rates is something that income investors have dealt with through every major market cycle.  Many have stubbornly adhered to the notion that the Fed’s monetary decisions and other fiscal shenanigans in the U.S. will ultimately cause a severe disruption in the bond market.  Additionally, there has always been this chronic concern that inflationary pressures lurk just around the corner and will ultimately put pressure on bond prices.  Read more

Comparing Bond ETFs: Same Yield, Less Interest Rate Risk

Written by David Fabian, January 16th, 2018

The two biggest risks that bond investors face are rising inflation and rising interest rates. This dual threat has been moderated for many years now as global central banks set accommodative policies to boost asset prices. The ultimate result of which has been tame inflationary metrics, steady jobs growth, corporate earnings expansion, and firm declines in Treasury yields.

The more recent roundabout (or tightening) of Federal Reserve fiscal policy has created a unique environment for bond investors to evaluate. Namely a flattening yield curve, whereby the 2-year U.S. Treasury Yield is sharply rising compared to its 10-year and 30-year counterparts.

Read the complete article at NASDAQ.com

What’s The Bull Case For International Bond ETFs?

Written by David Fabian, November 21st, 2017

This week’s ETF column was spawned by a thought-provoking statement on Twitter from one of my favorite follows @econompic.  He deftly pointed out the disparity in current yield between a risk-free savings account in the United States versus the paltry income derived from broad-based international bond ETFs.

For example, one can now easily earn 1.25% (or greater) in a savings or money market account versus the 0.73% current yield of the Vanguard International Bond ETF (BNDX).  This exchange-traded fund is considered one share class of the broader Vanguard International Bond mutual fund series, which combined house over $94 billion in total assets.

Read the complete article at NASDAQ.com

3 Underrated Bond ETFs For Your Income Portfolio

Written by David Fabian, August 25th, 2017

I write a ton of words every week on the topic of building income portfolios using exchange-traded funds.  Some articles are purely an exercise in research and education, while others are directed towards real-world concepts that we are implementing for clients of our firm.

It’s through this process that I often dive into a new fund or sector and compare it to an established group of peers.  It’s also refreshing to see funds that I have reviewed favorably in the past live up to (or exceed) their lofty expectations.  Read more

Put TCW’s New Actively Managed Bond ETF On Your Watch List

Written by David Fabian, July 22nd, 2017

I’ve always been a big fan of actively managed bond funds as a way for investors to access risk managed or alpha-generating strategies.  Unlike active stock pickers, the best managers from the likes of PIMCO, DoubleLine, Guggenheim, and Loomis Sayles have proven track records of adding value for their investors versus a passive benchmark.  Fixed-income is still one of those asset classes where sector positioning, duration targeting, and credit selection can make a huge impact on net returns.

Look back through my blog and you will see numerous references to some of my favorite funds like the DoubleLine Total Return Bond Fund (DBLTX) or the PIMCO Income Fund (PONDX).  We have owned both for our clients and in our own accounts for years.  Read more