What Kind of Bonds Do You Hold?

[Lsbcal]

Interesting information. I kind of got the feeling that more people held more treasuries and less corp bonds, but it appears to be just the opposite, though this is a small sampling. I agree with poster above. I find it hard to purchase treasuries at the prevailing rates. But of course if we had another
2008-2009, or a 20's depression again, I might feel differently. How secure the short and intermediate bonds would be, I don't know.

My intermediate bond funds are all in tax free or tax deferred. If the stock market sold off as in 2001 or 2008, I'd not hesitate to move them to Treasuries. I actually monitor on a monthly basis to force myself to track the numbers. No way would I hold them in a 1930's type of decline. In 2008 there was no way to really know which way things would head so one has to be proactive.

My get-out-of-Dodge plan which is rarely triggered.

 

[Koolau]

Similar to many others:

Stable Value in 401(k)
Wellesley/Wellington
short-term VG bond fund
I-Bonds

When I fantasize about "do-overs" in my life, one of the most recurring is to have purchased more - a LOT more - I-Bonds when they were paying 3%++ back in the early 00's. I bought the limit (60K) in '03 and wish I had done so in several other years. BUT, there are few do-over's in life, so I just trudge on - and occasionally fantasize.

 

[jon-nyc]

I-bonds (issued 2002-present)
tips (all maturities from 2026-2043)
vnyux (ny muni lt)
vfidx (inv grade intermediate)

 

[gcgang]

Anyone buying closed end muni or bond funds that are now trading at large discounts ?

Watching BIT for my IRA. A multi sector managed by Blackrock. Offered this March at $20, and a premium. NAV has held up well, and price is now at an 11% discount, resulting in an almost 20% loss for IPO buyers. Will probably be more selling as the idiots who bought on the offering take the tax loss before the end of the year.

Any others you find interesting?

 

[pb4uski]

Watching BIT for my IRA. A multi sector managed by Blackrock. Offered this March at $20, and a premium. NAV has held up well, and price is now at an 11% discount, resulting in an almost 20% loss for IPO buyers. Will probably be more selling as the idiots who bought on the offering take the tax loss before the end of the year.

Any others you find interesting?

I couldn't find an ER anywhere. Any idea what the ER is? Not keen on the amount of leverage they have.

 

[Hamlet]

I own no bonds.

 

[HFWR]

Currently around 35% of portfolio in BSV, VG's short-term bond ETF.

 

[Gazingus]

If somebody had no bonds, wouldn't now (historically low interest rates) be a bad time to start buying them?

I do have some short term cash that's doing nothing; I'm assuming a short term bond fund would give some miniscule return with virtually no risk?

 

[RE2Boys]

Similar to many others:



When I fantasize about "do-overs" in my life, one of the most recurring is to have purchased more - a LOT more - I-Bonds when they were paying 3%++ back in the early 00's. I bought the limit (60K) in '03 and wish I had done so in several other years. BUT, there are few do-over's in life, so I just trudge on - and occasionally fantasize.

Same here, who would have known that such a conservative investment at the time would be a very good one now with interest rates so low. Maxed out in 2001 and 2003, can't remember why didn't buy them in 2002. I remember using a rebate credit card to buy them also. But the Treasury caught on and discontinued credit card purchases.

 

[F4mandolin]

If somebody had no bonds, wouldn't now (historically low interest rates) be a bad time to start buying them?

I do have some short term cash that's doing nothing; I'm assuming a short term bond fund would give some miniscule return with virtually no risk?

Somewhat where I am sitting....I have some of it covered with the G+F funds in TSP....but I should have some with my Vanguard money as well and just can't pull the trigger. Might stick some more in Div Growth instead.

 

[gerntz]

Tried to buy a new issue of CHSXP preferred at 7.785% at par last week but got aced out.

 

[behappy]

Less than 5% of total portfolio on bond funds - VWENX, VWIAX, VTHRX, JNSIX

 

[Coolius]

Tried to buy a new issue of CHSXP preferred at 7.785% at par last week but got aced out.

CHSXP is not a bond - it is a preferred stock with call option in 2023. The issuing company, CHS, Inc. is a solid and well managed entity, an Agricultural Co-op.

Having said all that, it looks like a worthwhile investment with a good yield, and low risk of default.

 

[mrfeh]

If somebody had no bonds, wouldn't now (historically low interest rates) be a bad time to start buying them?

It depends on when you plan on selling them.

 

[ESRwannabe]

Right now I use Vanguard's Total Bond Market Index.

What I do is put all bonds in my 401k, REITs in my Roth IRA and stocks in taxable. So I didn't really have a choice on what to use for bonds, but I'm perfectly happy with it.

 

[daveriocafe]

I hope I'm not getting off subject, but we have no bonds at all. We retired early due to my health. I'm 63 wife is 59. We have about 400k, 65% stocks, now the rest cash. I figure our cash needs will be about 12k per year, so I want to leave 60k in cash. I have never invested in bonds, because I thought the risk was greater than the return. Obviously, after reading in this site, I am wrong. It looks like people who know a lot more than I do on here consider them valuable investment tool. Until the last year, I was about 95% in stocks, all self directed.

For my wife's sake, I will probably covert to index funds like Spy, and Mdy. I would like to use index bond funds, but again, how much risk is there. Sorry for the questions, but bonds are foreign to me.

 

[RobLJ]

I bought some PIMPCO Total Return in early '08 when it became an option and monthly cost-averaged into it. Bill the Grosser has done well by me--41% ROI.
A large chunk of that was from Fidelity Intermediate, which I think was hammered in '08 (probably due to bank bond holdings, so the switch worked in that the rest was rebalancing from stock funds. Past performance by Bill the Grosser is not indicative of future returns, but I think he and Grundlach are the sharpest tools in the active shed.