Young Research & Publishing Inc.

Investment Research Since 1978

Disclosure

  • About Us
    • Contributors
    • Archives
    • The Final Richard C. Young’s Intelligence Report
    • You’ve Read The Last Issue of Intelligence Report, Now What?
    • Dick Young’s Research Key: Anecdotal Evidence Gathering
    • Crisis at Vanguard
  • Investing Analysis
    • Bonds
    • Currencies and Gold
    • Dividend Investing
    • ETFs & Funds
    • Investment Strategy
    • Retirement Investing
    • Stocks
    • The Efficient Frontier
  • Money Management
  • Dynamic Maximizers®
  • Retirement Compounders®
  • Free Email Signup

The 10 Largest Bond Funds: Part II

May 30, 2014 By E.J. Smith

Yesterday I wrote to you about how the 10 largest bond funds are increasing risk by loading up on junk bonds. The only fund company of the group not doing this is Vanguard. No surprise there. Vanguard always seems to do the right thing for investors. But there’s another narrative inside this grouping of behemoths that I want to share with you today. Who is the biggest holder of junk and who will pay the price when markets turn?

DoubleLine Total Return bond fund has loaded its portfolio with 28% of its assets junk rated. You may recall this beauty of a quote from its manager. He said that investors “want exposure to these high-yield and distressed securities and they’ve become comfortable with what we’re doing.” Again, as I wrote to you yesterday, in my close to 20 years working with investors, no one is comfortable losing money. And that’s exactly what this fund is set up to do in a major way when credits turn.

But the big losers are not going to be the fund’s managers. They’ll be fine raking in their fat fees. It will be the firemen, police officers, and retired teachers that will take the hit. They’ve put their trust in the managers and the pension board to do the right thing with their hard earned money. But as is often the case in the institutional investing game, it’s simply a beauty contest to determine where money is invested.

DoubleLine Total Return happens to be the belle of the ball today. It has fattened up to $31 billion under management in only four years. Its assets have grown by 689% since inception. We all know how this fairy tale will end.

 

Share this:

  • Email
  • Twitter
  • Facebook

You Might Also Like:

  • The Disaster Waiting to Happen in Bond ETFs
  • One More Reason You Should Avoid Index-based Bond ETFs
  • The Trouble with this Bond Fund
  • Author
  • Recent Posts

E.J. Smith

E.J. Smith is Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998. E.J. has trained at Sig Sauer Academy in Epping, NH. His first drum set was a 5-piece Slingerland with Zilldjians. He grew-up worshiping Neil Peart of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306.

He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West and Paris.

Please get in touch with E.J. at ejsmith@youngresearch.com.

Latest posts by E.J. Smith (see all)

  • A Tax-Free Savings Plan for Your Grandchild - December 6, 2019
  • Your Retirement Life: “My life Has Always Been One of Very Good Fortune” - December 5, 2019
  • Banks Are Selling Your Private Info to Strangers - December 4, 2019

Search Young Research

Most Popular

  • Vanguard GNMA Outlook 2020
  • Procter & Gamble (PG) Stock: The Only True Dividend King
  • Rich Grandchild, Poor Grandchild
  • Potential Index Fund Component Loses 98%
  • The Power of a Compound Interest Table
  • You Must Find Investments that Fit Your Needs
  • Is Your Cash Safe? Probably not This Safe
  • Here's Why You Should Treat Your Disaster Cash like Gold
  • Ginnie Mae (GNMA) Bond Yields
  • Phone Scams are Getting Better: Here's How to Protect Yourself

DON’T MISS

Risk & Reward: An Efficient Frontier
The Highest Yielding S&P 500 Stocks
The Power of a Compound Interest Table
Is Gold a Good Long-term Investment?
How to Invest in Gold
You’ve Read the Last Intelligence Report, Now What?
For Investors who Want to Stop Worrying About a Market Crash
Dividend Kings: Are Dividend Kings the Best Dividend Stocks to Buy?
The Highest Yielding Dow Stocks
Vanguard Wellington (VWELX): The Original Balanced Fund
What is the Best Gold ETF for Investing and Trading?

RSS The Latest at Richardcyoung.com

  • When Will the Democrats Finally Pack It In?
  • Trump’s Tax Reform Makes America’s Competitiveness Great Again
  • Is Harvard Square, Cambridge Dead?
  • MS-13 in Northern Virginia
  • A Taste for Familiar, Family and Faith in God
  • Trump Leads US Economy to Longest Expansion in History
  • From Anonymous: “I Am Part of the Resistance”
  • America’s Silent Army with 423M Guns
  • Reboot American Families, Small Towns, Rural Areas
  • Trump Stops NATO from Making a Terrible Mistake

About Us

  • About Young Research
  • Archives
  • Contributors

Our Partners

  • Richard C. Young & Co.
  • Richardcyoung.com

Social Media

  • Facebook
  • Twitter
  • Youtube
  • Pinterest

Copyright © 2019 | Terms & Conditions

Young Research's Portfolio Strategy is packed with insight, analysis, and actionable advice on the global financial landscape. Sign up FREE to become a more confident, comfortable, successful long-term investor.

  • Top dividend strategies
  • Winning income investments
  • Retirement insights
  • Gold and precious metals analysis
  • The best sectors and regions to focus on now
  • And much more!

Start Your FREE Subscription Today!

x
loading Cancel
Post was not sent - check your email addresses!
Email check failed, please try again
Sorry, your blog cannot share posts by email.