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Vanguard Holds Half of PG&E's $920 Million Municipal Bonds
01-15-2019, 02:35 PM
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#1
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2003
Location: Florida's First Coast
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Vanguard Holds Half of PG&E's $920 Million Municipal Bonds
How does one find out which VG Bond or MM funds hold PG&E debt?
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01-15-2019, 02:47 PM
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#2
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Thinks s/he gets paid by the post
Join Date: Dec 2016
Location: DC area
Posts: 2,464
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I think you need to dig into the Annual/Semi-annual reports. Here's Vanguard's latest for all of their corporate bond funds https://personal.vanguard.com/funds/...pdf?2210147223
It is from July 31, 2018. It looks like the Annual will be published in a couple of weeks on Jan 31. Searching "Pacific Gas" shows 21 hits.
You can find links to these on the overview tab in each fund profile. E.G., https://investor.vanguard.com/mutual.../profile/VWEHX
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FI and Semi-ER March 24, 2017
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"All models are wrong, some are useful." - George Box
“There is always a well-known solution to every human problem: neat, plausible, and wrong.” - H.L. Mencken
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01-15-2019, 02:50 PM
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#3
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Confused about dryer sheets
Join Date: Jul 2015
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01-15-2019, 02:51 PM
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#4
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Thinks s/he gets paid by the post
Join Date: Dec 2014
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the bloomberg snippet I just watched noted they had been selling the bonds for a while. So it likely is not as bad as you might think. It also talked about some banks being a back stop for the bonds.
That said, if they are muni bonds, I would think you might find them in a muni money market.
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01-15-2019, 04:56 PM
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#5
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Full time employment: Posting here.
Join Date: Nov 2008
Location: Louisville
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Looks like the tax balanced fund is probably mostly in the clear. Looks like most of the holdings in the California muni bond funds.
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01-15-2019, 05:11 PM
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#6
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Thinks s/he gets paid by the post
Join Date: Aug 2011
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From this Bloomberg article, I find Vanguard's holdings concentrated in 3 funds
Quote:
The Vanguard Group holds about $415 million of municipal bonds issued on behalf of PG&E Corp., about half of the $920 million state and local debt sold for the California utility that’s edging toward bankruptcy because of the fallout from devastating wildfires.
But all but $2 million of the bonds held by Vanguard are backed by banks that act as buyers of last resort for the securities, insulating the money manager from risk, said Freddy Martino, a spokesman. Martino declined to comment on PG&E’s impending bankruptcy, though he said the firm’s holdings have declined about $15 million since its filings at the end of December.
Vanguard held $227.9 million of PG&E debt in its $5.6 billion California Municipal Money Market fund as of Dec. 31, according to data compiled by Bloomberg. It held another $110 million of PG&E’s debt in its California intermediate and long-term funds and $94.5 million in its $18.3 billion national money market fund.
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01-15-2019, 05:51 PM
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#7
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2003
Location: Florida's First Coast
Posts: 7,654
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As long as they are not in VMMXX we will be OK. I think they are all treasuries.
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"Never Argue With a Fool, Onlookers May Not Be Able To Tell the Difference." - Mark Twain
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01-15-2019, 07:42 PM
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#8
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Thinks s/he gets paid by the post
Join Date: Jan 2013
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Wellington has quite a bit. Over $100 million by my quick eyeball check. Assume Wellesley would have as much or more. Probably some loss in these two funds if the bonds are not insured.
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01-15-2019, 07:48 PM
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#9
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2002
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Quote:
Originally Posted by Another Reader
Wellington has quite a bit. Over $100 million by my quick eyeball check. Assume Wellesley would have as much or more. Probably some loss in these two funds if the bonds are not insured.
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Doesn't appear there is a lot to be concerned about :
Quote:
...all but $2 million of the bonds held by Vanguard are backed by banks that act as buyers of last resort for the securities, insulating the money manager from risk...
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Numbers is hard
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01-15-2019, 07:58 PM
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#10
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Thinks s/he gets paid by the post
Join Date: Nov 2011
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psst Wellesley
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01-15-2019, 08:33 PM
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#11
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Thinks s/he gets paid by the post
Join Date: Dec 2016
Location: DC area
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I guess I need to go back to fundamentals and ask why does one care? The whole point of owning mutual funds instead of picking individual stocks/bonds is to average out uncommon but normal events (bankruptcies, poor earnings, lawsuits, management corruption/incompetence, etc.).
Now if I was a stock picker or bond picker I might worry about PG&E, but I'm not so I am not.
The long-term average stock and bond returns include these events, and every other event. Ho hum...
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FI and Semi-ER March 24, 2017
Consulting to stay engaged
"All models are wrong, some are useful." - George Box
“There is always a well-known solution to every human problem: neat, plausible, and wrong.” - H.L. Mencken
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