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PTY advice!
Old 02-28-2011, 09:02 PM   #1
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PTY advice!

Greetings!

Two months ago, I put a bunch of money into PTY (Pimco leveraged bond fund). The thinking was that it was a relatively safe place to keep fixed income dollars in my 401K. It had a yield of about 6.5%, so not expecting much.

Itís up 13% in the 2 months since I bought it.

IYO, should I Buy, Sell or Hold?

Thanks!
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Old 02-28-2011, 09:07 PM   #2
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Quote:
Originally Posted by scooter260 View Post

IYO, should I Buy, Sell or Hold?
Yes, definitely!
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Old 02-28-2011, 09:09 PM   #3
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I would do what REW recommends.
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Old 02-28-2011, 09:24 PM   #4
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OK!
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Old 02-28-2011, 09:29 PM   #5
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Scooter, thanks for having a sense of humor.

To answer your question seriously, a leveraged bond fund is not what I would consider a "relatively safe place to keep fixed income dollars". What other options are offered in your 401k?
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Old 03-01-2011, 06:58 AM   #6
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Anything leveraged is not a safe place for your money.

What is your investment objective with this money? Has it changed since you bought this instrument? Did you do enough due diligence at the time of purchase to really understand what you own?
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Old 03-01-2011, 07:17 AM   #7
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Quote:
Originally Posted by scooter260 View Post
Greetings!

Two months ago, I put a bunch of money into PTY (Pimco leveraged bond fund). The thinking was that it was a relatively safe place to keep fixed income dollars in my 401K. It had a yield of about 6.5%, so not expecting much.

Itís up 13% in the 2 months since I bought it.

IYO, should I Buy, Sell or Hold?

Thanks!
A closed end, "junkish", highly leveraged bond fund is NOT "a relatively safe place to keep fixed income dollars"

Think of this more as an equity fund with high fees and with the added risk of exposure to interest rate fluctuations. You don't get the big returns without big risks. I'd be taking profits and rebalancing. PTY has done very well since the crash so I'm not saying get out of it completely, but you must realize that it is a risky place to put your money.
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