FMD Capital Management

Posts Tagged: credit spreads

Is A Dividend Cut On The Horizon For DBL?

Written by David Fabian, November 06th, 2017

One of the closed-end funds that seems to be a recurrent favorite on our watch list is the DoubleLine Opportunistic Credit Fund (DBL), run by Jeffrey Gundlach of DoubleLine Capital.  This unique actively managed portfolio was the first of its kind to debut from DoubleLine back in 2012 and has developed a cult following among CEF investors.

DBL primarily invests in a mixed basket of mortgage backed securities, collateralized loan obligations and other asset backed securities.  The fund has just over $325 million in total assets with a relatively tame 16% leverage ratio to boost its net exposure.  It currently yields over 8% annually and income is paid monthly to shareholders.  Read more

VIDEO: A Tale of Two Markets

Written by David Fabian, May 31st, 2017

In this month’s video, I look at the technical trends developing in growth versus value stocks.  Chart review includes analysis of large-cap, small cap, international, Treasury bonds, and high yield bond ETF prices.  Observations of risk and reward are noted throughout, with an emphasis on trend following and sensible portfolio management.  Recorded on May 31, 2017.

A log of our previous videos are posted here.

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Slow Summer Widens CEF Discounts

Written by Michael Fabian, August 14th, 2015

As we find ourselves in the seasonally weakest time of the year, most investors are hoping to see 2015 come to a close with at least a marginal gain in risk assets.  Yet, for closed end fund (CEF) investors it’s been a tough pill to swallow after such vigorous upside momentum during the first half of the year.  Unfortunately, most funds have given back their ample headway and then some, squarely putting total return figures in the red for the year.  Read more

High Yield Breakdown

Written by Michael Fabian, July 24th, 2015

Could the high yield bond market be sending a precursor message to the Fed, signaling them not raise rates until 2016?

While that’s a notable possibility, the market just doesn’t seem hungry enough to gobble up excess inventory from record outstanding high yield debt levels.  Especially with intermediate to long-term fundamental challenges such as the imminent probability of a short-term interest rate hike and a barbell shaped rollover calendar centered in the 2019-2020 time frame. Read more

Emerging Market Bonds: Where Do We Go From Here?

Written by Michael Fabian, November 14th, 2014

Investors that were early to identify the attractive valuations following the volatility in emerging market bonds in early 2014 are still sitting atop a pile of gains, yet in recent months new investors haven’t experienced the same steady uptrend.

Partly due to the slack in the credit markets domestically, bonds in emerging markets have largely moved sideways in a 2% range over the past few months. The seemingly endless uptrend in the U.S. dollar has been weighing heavily on retail interest for foreign assets, even those that are in fact already denominated in U.S. Dollars. Read more