MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
an InvestmentWires' Publication
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MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication |
|
Wednesday, December 17, 2008 Bond ETFs Taste a Little Sour The shaky markets continue to cause new and unexpected changes in the investing world. In a long feature article, IndexUniverse's Richard Shaw argues "no-load, low-expense bond mutual funds [are] currently more attractive than their ETF cousins" thanks to an apparent break-down in some bond ETF categories' mechanics. "ETFs with broken arbitrage mechanisms can trade at substantial discounts and premiums to NAV, much like closed-end funds ... Arbitrage is clearly not functioning properly for some bond types in this current difficult credit market," Shaw writes. "Only sovereign U.S. treasuries, mortgage-backed securities (agency debt) and the aggregate bond (with lots of Treasury and guaranteed agency debt in it), earned green shading [i.e. 'expected premium discount behavior']." Printed from: MFWire.com/story.asp?s=20170 Copyright 2008, InvestmentWires, Inc. All Rights Reserved |