Any recommendations for current opportunities. Looking for above average yield with reasonably decent fundamentals? Talking CDs / equities / credit here.
You could look into the muni-space. I know we were looking pretty closely at some Mass. DOT muni-bonds. I read an article that was talking about this gulf coast spill blowing out the yields on water & sewer bonds in the affected states.
Would you mind sharing that article please?? Thanks. I still like bank loans. . . good yield, senior in capital structure, will ratchet up income should rates rise. Maintaining a small allocation (after a huge run). Access through mutual funds.
JustPass Wrote: ------------------------------------------------------- > Would you mind sharing that article please?? > Thanks. > > I still like bank loans. . . good yield, senior in > capital structure, will ratchet up income should > rates rise. Maintaining a small allocation (after > a huge run). Access through mutual funds. I’ll look for it after work. It was on RCM I think april 22 or the 23rd. When the implications of the spill were becoming more apparent.
Look at medium term Morgan Stanley and medium GS bonds, where spreads are around +300 to Treasuries. You buy a 5year goldman at around 5% right now. If you want to isolate the spread, short Treasuries
CDs offer nothing unless you want to buy out of Puerto Rico haha. Munis are overbought. I was looking at a client’s muni-only portfolio today and the average price per bond position was 109-112. Your TE yield might be fairly decent but, the YTM is going to suck wind if you only plan on holding for less than 5 years. Yesterday’s CPI number really strengthened my view that we will not see any type of rate increase from the FOMC anytime this year. That being said, there is opportunity to be found further out on the yield curve in the US Corp 10yr+ space. Good article: http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a3LH0NdGMBjU