Comments on: Yield = Poison http://alephblog.com/2007/02/21/yield-poison/ Helping Institutions and Ordinary People Invest Better by Focusing on Risk Control Fri, 25 May 2012 00:25:08 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: alephblog » Blog Archive » Time to Begin Increasing Credit Risk Exposurehttp://alephblog.com/2007/02/21/yield-poison/comment-page-1/#comment-26998 alephblog » Blog Archive » Time to Begin Increasing Credit Risk Exposure Tue, 29 Jun 2010 00:36:24 +0000 http://alephblog.com/?p=15#comment-26998 [...] on credit risk and FX.  That’s a big shift for me.  If you remember an early post of mine, Yield = Poison, you will know that I am willing to have controversial views.  Also, for those that have read me [...] [...] on credit risk and FX.  That’s a big shift for me.  If you remember an early post of mine, Yield = Poison, you will know that I am willing to have controversial views.  Also, for those that have read me [...]

]]> By: David Merkelhttp://alephblog.com/2007/02/21/yield-poison/comment-page-1/#comment-14 David Merkel Fri, 23 Feb 2007 05:40:30 +0000 http://alephblog.com/?p=15#comment-14 Ed, thanks for the kind comments. I have been rebalancing from closed end funds that I bought at a discount, that now trade at premiums, to ETFs that do roughly the same thing. You can see my bond portfolio (for the balanced funds, at <a href="http://www.stockpickr.com/members/port/Merkel-Bonds/" rel="nofollow">Stockpickr.com</a>. <P/> At present, many closed-end funds are trading at premiums to NAV. To some degree, that is a negative sign for the market as a whole, but that is just one indicator among many. <P/> This is a time to be satisfied with lower income levels. Ah, to be back in mid-2002, when the panic was thick, and spreads were too. I had the courage to act then, but few others did. That time will come again; as for now, we aren't losing a lot to move up in quality. Ed, thanks for the kind comments. I have been rebalancing from closed end funds that I bought at a discount, that now trade at premiums, to ETFs that do roughly the same thing. You can see my bond portfolio (for the balanced funds, at Stockpickr.com.

At present, many closed-end funds are trading at premiums to NAV. To some degree, that is a negative sign for the market as a whole, but that is just one indicator among many.

This is a time to be satisfied with lower income levels. Ah, to be back in mid-2002, when the panic was thick, and spreads were too. I had the courage to act then, but few others did. That time will come again; as for now, we aren’t losing a lot to move up in quality.

]]> By: ed douglashttp://alephblog.com/2007/02/21/yield-poison/comment-page-1/#comment-12 ed douglas Fri, 23 Feb 2007 00:28:34 +0000 http://alephblog.com/?p=15#comment-12 This is a subject that has concerned me of late. I have several closed end income funds that were purchased at a discount, that are now trading at nice premium. One for example, ZTR which has gone from a 10% discount to a 10% premium giving me over years worth of income in the capital gain. Although the income is still attractive, does your rule of thumb call for a rebalancing when the premiums reach a certain level. Enjoy your artcles in RM and look forward to this new site This is a subject that has concerned me of late. I have several closed end income funds that were purchased at a discount, that are now trading at nice premium. One for example, ZTR which has gone from a 10% discount to a 10% premium giving me over years worth of income in the capital gain. Although the income is still attractive, does your rule of thumb call for a rebalancing when the premiums reach a certain level.
Enjoy your artcles in RM and look forward to this new site

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