Posts tagged as:

BSCH

Buy On The Dip Prospects December 9th Edition

by on December 9, 2013

Here is a look at ETFs that currently offer attractive buying opportunities. The ETFs included in this list are rated as buy candidates for two reasons. First, each of these funds is deemed to be in an uptrend based on the fact that it is trading above its 200-day and 50-day moving averages, which are popular indicators for gauging long-term and medium-term trends, respectively. [click to continue…]

{ Comments on this entry are closed }

When managing a fixed income portfolio, there are two primary risk factors that financial advisors consider: credit risk and interest rate risk. The superstar bond fund managers of the world have set themselves apart by a superior ability to identify these risk components–and then select securities that offer superior risk-adjusted returns [see also Better-Than-AGG Total Bond Market Portfolio].

The first risk factor is easy enough to understand; the more likely an issuer of debt is to default and leave bondholders with nothing, the greater the return that will be demanded by those lending money. Companies and countries with stellar credit ratings and strong cash flow profiles can borrow funds at relatively low rates of interest, while more speculative issuers will have ot pay significantly more in interest to compensate for the additional credit risk. Disparities in credit risk explain why Wells Fargo can issue debt with a 3.75% coupon, while less stable companies such as First Data are issuing debt with coupons of about 12.6%. Many fixed income managers devote significant portions of time attempting to identify disparities between the interest companies are paying on debt and their actual credit risk; figuring out a disconnect can result in an opportunity to generate alpha.

[click to continue…]

{ Comments on this entry are closed }

Guggenheim, a pioneer in the area of target date fixed income products, has responded to strong interest in its BulletShares product lineup with the launch of three more products targeting investment grade corporate debt maturing in a specific year. The recent addition, which took effect last week, extends the existing product lineup by three years, […]

{ Comments on this entry are closed }

Bond ETFs For Every Objective

by on February 1, 2012 | Updated February 5, 2012

As the lineup of exchange-traded products has expanded dramatically in recent years, financial advisors have found themselves with more tools at their disposal than ever before. The extreme granularity of many of the equity products out there allows for cheap, low maintenance targeting of specific corners of the investable universe, while the development of some […]

{ 2 comments }

Accretive Asset Management LLC announced last week the launch of a family of high yield bond indexes that could soon be the basis for a new suite of exchange-traded funds. The BulletShares USD High Yield Corporate Bond Indices are maturity-targeted benchmarks that measure the performance of U.S. dollar denominated non-investment grade bonds. Each index includes […]

{ Comments on this entry are closed }

With 2011 just around the corner, the curtain is closing on yet another year of tremendous expansion in the ETF industry. With inflows for the year at close to $100 billion, total ETF assets will recently eclipsed the $1 trillion mark for the first time. From a product development standpoint, 2010 was a record year; […]

{ Comments on this entry are closed }

In recent years, investors have grown increasingly comfortable with the thought of achieving their fixed income exposure through ETFs. Through the first six months of 2010, bond ETFs had seen cash inflows of more than $18 billion, nearly half of the total for the ETF industry as a whole. Many of the most popular bond […]

{ Comments on this entry are closed }

Investors hoping to coast through the summer months learned early in June that a summer slowdown wasn’t in the cards. Trading volumes remained elevated throughout the month, and volatility continued its impressive climb higher. With the latest developments out of Europe continuing to ripple through the global economy and fresh concerns about the best approach […]

{ Comments on this entry are closed }

The latest innovation in the rapidly-growing fixed income ETF space was rolled out on Friday, as Claymore introduced a line of seven ETFs, each of which focuses on corporate bonds with maturity dates falling in a specific year. The new ETFs are:

{ Comments on this entry are closed }

The impressive pace of expansion in the ETF industry slowed a bit in May, as issuers introduced fewer new funds than in previous months. Still, more than a dozen new ETFs began trading last  month, including some first-to-market products, a few ETFs that will go head-to-head with established products, and the second coming of an […]

{ Comments on this entry are closed }