The Bond Dream Room

Discussion of the Bond portion of the Permanent Portfolio

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ochotona
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Re: The Bond Dream Room

Post by ochotona » Wed Jul 11, 2018 5:28 pm

What happened to the bond bear market?

https://www.schwab.com/resource-center/ ... cmp=em-QYD
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Re: The Bond Dream Room

Post by boglerdude » Mon Jul 23, 2018 7:04 am

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Desert
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Re: The Bond Dream Room

Post by Desert » Mon Jul 23, 2018 8:34 am

Nice! Finally seeing some positive real returns out there.
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Re: The Bond Dream Room

Post by dualstow » Mon Jul 23, 2018 8:44 am

Maturity of 1-5 years.
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Re: The Bond Dream Room

Post by boglerdude » Mon Jul 23, 2018 9:07 am

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Re: The Bond Dream Room

Post by dualstow » Mon Jul 23, 2018 9:49 am

Maybe it's not SEC yield?
While Yahoo's numbers always match up with the yield I'm getting on individual stocks, I don't know how they do bond funds.
If you hold VCSH for the "duration" (I mean average maturity in this case), you should get a decent overall yield.
Not pp-ready, of course, but a decent yield for your vp perhaps?
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Re: The Bond Dream Room

Post by Desert » Mon Jul 23, 2018 10:05 am

A few more details, from Vanguard:
Average duration is 2.8 years, so there is some term risk, but not a lot.
Yield to maturity is 3.4%, SEC yield is 3.37%.
Definitely not a PP fund.
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dualstow
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Re: The Bond Dream Room

Post by dualstow » Mon Jul 23, 2018 10:32 am

For boglerdude, I suppose yield to maturity is the one to focus on. Is that right? I mean, when we really want to get a grasp of the yield we're going to get. (Of course long treasuries in the pp are all about duration).
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Re: The Bond Dream Room

Post by bedraggled » Mon Jul 23, 2018 10:46 am

What's up with the decline in 30-year Treasuries this morning?

Thanks.
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Re: The Bond Dream Room

Post by Desert » Mon Jul 23, 2018 11:00 am

dualstow wrote:
Mon Jul 23, 2018 10:32 am
For boglerdude, I suppose yield to maturity is the one to focus on. Is that right? I mean, when we really want to get a grasp of the yield we're going to get. (Of course long treasuries in the pp are all about duration).
I think that's right. And I assume yield to maturity and SEC yield should be very close. Here's a good description of SEC yield:
https://www.investopedia.com/terms/s/secyield.asp
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dualstow
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Re: The Bond Dream Room

Post by dualstow » Mon Jul 23, 2018 11:18 am

bedraggled wrote:
Mon Jul 23, 2018 10:46 am
What's up with the decline in 30-year Treasuries this morning?

Thanks.
I don't know if it's the only factor, but the WSJ says "on concerns of falling demand from abroad."
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Re: The Bond Dream Room

Post by Kriegsspiel » Mon Jul 23, 2018 11:26 am

I did notice that Russia dumped something like $50 billion of Treasuries recently in favor of gold. Japan and China both sold billions earlier this year as well, I don't know if that was a one time thing, or net for the year. So at least someone is not demanding them.
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