FMD Capital Management

Posts Tagged: fixed-income

How Safe Is Your High Yield ETF?

Written by David Fabian, October 18th, 2017

The strong outperformance of credit-related securities and progressive trend in interest rates has emboldened many investors to bulk up on high yield funds over the course of this bull market.  The minimal dividends from traditional CDs and high-quality Treasury bonds leaves little to be desired when compared to corporate or municipal debt yielding magnitudes of greater income.

The combination of high dividends, consistent capital appreciation, and relatively low volatility have made for an attractive opportunity for many income investors portfolios.

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

3 High Yield International Bond ETFs

Written by David Fabian, August 22nd, 2017

The high yield credit markets have been a smooth ride for income investors throughout 2017. The combination of a steady global equity market uptrend, low volatility, and an abundant thirst for yield has been a tailwind for riskier fixed-income securities.

While many investors have been fixated on the risks and opportunities for owning U.S. corporate debt, the international markets have been steadfastly climbing to new heights. This trend has produced some impressive total return statistics for exchange-traded funds that track these assets.

Read the complete article at NASDAQ.com

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

Dealing With A Dividend Cut In Your CEF Portfolio

Written by David Fabian, July 12th, 2017

If you dabble in the closed-end fund market long enough, you are probably going to own a fund that sees its dividend cut.  This seemingly innocuous event can have numerous ripple effects for shareholders that should be carefully evaluated before you respond with any knee-jerk reactions.  Read more