looney - I wouldn't have started the thread if I did not have intentions of listening (reading...) and soaking in all the information.  I appreciate everything you have put down and your insight on the bond market.  I also have been using some floating rate (Hartford) to sub for Bond Positions as well.  If the Fed pauses post-August, I will take a harder look at some shorter-duration funds as well.   

bank, don't predicate what you'll do upon what the Fed does in August or any other month.  The Fed is trying to rein in inflation--nothing more.  Although rates do generally go up when the Fed moves up and vice versa, at the end of the day it's the markets that set the return.  If your client needs income, give 'em income, the best and highest that you can find, along with the usual caveat about price movements.  Don't chase rates...you'll drive yourself and your clients nuts.

Just my $.02.

[quote=NASD Newbie]

[quote=blarmston]I was completely expecting to see a post forum the old man at 4:37am EST waiting for me this morning. Either he's dead or his med's haven't kicked in yet....[/quote]

I'm sure it was a disappointment, but I spent the day traveling.

[/quote]

hope you're enjoying the diversion as much as we are.....

you've become THE lightning rod of about everyone in this forum, maybe (hopefully) you'll find that (posting) a little less, is more..........

Starka - I agree with you in part - I should have clarified.  My strategies focus on two parts - 1 is an asset allocation model based on objective and tolerance.  This is where we develop a longer-term allocation strategy and stick with it, which to my knowledge is going to be the best “sure” way to create long-term solid performance.  Naturally we review the allocations yearly (along with performance quarterly) to ensure that the objectives are in line with the current allocation; any change in allocation simply means more weight in any given asset class per the change in allocation.  What I meant before when I said “take a harder look” was more for the tactical portion of my portfolio, which is more of an actively traded portion.  I haven’t used too many bonds here or bond funds, but have used a lot of floating rate.  The last thing I want to do for my clients is fall into that class of people…you know… “the average return of x mutual fund over the past 3 years was 15%, while the average return of all mutual fund investors was 6%”…that class. 

Just to add to that - the allocation model generally accounts for over 80% of the overall portfolio. 

So what tactical plays are you currently buying into? With the other 20%, other than floating rates, what areas have you idfentified as being opportunities? And why?

Closed end muni funds due to relative value.  Yields are about 6% and many are trading at discounts to NAV.

[quote=NASD Newbie]

How many tmies did you fail Series 7?

[/quote]

Just out of curiosity, Putsy, but how many months did you actually spend in the trenches, in production, making face to face  decisions with clients? I have a feeling some of us are wearing T-shirts that have more time in an FA’s chair than you do…...<?:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

[quote=Indyone]Closed end muni funds due to relative value.  Yields are about 6% and many are trading at discounts to NAV.[/quote]

Most closed end munis with yeilds that high are leveraged, does than concern you?

[quote=Starka]

bank, don't predicate what you'll do upon what the Fed does in August or any other month.  The Fed is trying to rein in inflation--nothing more.  Although rates do generally go up when the Fed moves up and vice versa, at the end of the day it's the markets that set the return.  If your client needs income, give 'em income, the best and highest that you can find, along with the usual caveat about price movements.  Don't chase rates...you'll drive yourself and your clients nuts.

Just my $.02.

[/quote]

Usually a good way to go. Most income clients are looking to keep it simple.

[quote=mikebutler222]

[quote=Indyone]Closed end muni funds due to relative value.  Yields are about 6% and many are trading at discounts to NAV.[/quote]

Most closed end munis with yeilds that high are leveraged, does than concern you?

[/quote]

It concerns me. 

That's why I only put my most aggressive income investors into this type of fund.  The client's who can stand the heat and possible volatility in a leveraged ETF.  And at that we only have a portion of fixed assets there.

By the way, for the newer guys, there is also a lot of risk in those Floating Rate funds. Many of those are leveraged too.

It amuses me that the old man is choosing not to respond to my earlier post.... Perhaps he can't dream of an intelligent rebuttal????

Remember old man, you may live in NY, but I was born and raised there... So when it comes to the quick wit and the ability to call the bull$hit when I see it- you cant handle it....

[quote=babbling looney][quote=mikebutler222]

[quote=Indyone]Closed end muni funds due to relative value.  Yields are about 6% and many are trading at discounts to NAV.[/quote]

Most closed end munis with yeilds that high are leveraged, does than concern you?

[/quote]

It concerns me. 

That's why I only put my most aggressive income investors into this type of fund.  The client's who can stand the heat and possible volatility in a leveraged ETF.  And at that we only have a portion of fixed assets there.

By the way, for the newer guys, there is also a lot of risk in those Floating Rate funds. Many of those are leveraged too.

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[quote=joedabrkr] [quote=babbling looney][quote=mikebutler222]

[quote=Indyone]Closed end muni funds due to relative value.  Yields are about 6% and many are trading at discounts to NAV.[/quote]

Most closed end munis with yeilds that high are leveraged, does than concern you?

[/quote]

It concerns me. 

That's why I only put my most aggressive income investors into this type of fund.  The client's who can stand the heat and possible volatility in a leveraged ETF.  And at that we only have a portion of fixed assets there.

By the way, for the newer guys, there is also a lot of risk in those Floating Rate funds. Many of those are leveraged too.

[/quote]

Yes babs true, but one key difference is that when the rates go up for the "lever" on the floating rate funds, the interest they earn on the floating rate loans/bonds also goes up. There is very little 'mismatch' on the timing, and consquently very little risk that there is a squeeze on the spread between the cost of funds and the rate earned by investing the borrowed money.  Biggest issue with the floating rate funds would be the credit risk, IMHO, and resultant market price risk.

Any folks out there have suggestions on how to find some of the good UNLEVERAGED muni closed end funds? <!-- var SymRealOnLoad; var SymReal;

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I agree with the leverage concern here.  The funds I use are about a third leveraged, and they're certainly not the only things I use, but are just another yield tool in the toolbox.  If there's a perfect solution, I'm all ears, but points from all of you are acknowledged...thanks...