So far in 2014 bonds have defied preseason expectations by posting some strong first-quarter gains, led by many of last year’s worst-performing sectors. The market’s most widely followed barometer, the Barclays Aggregate index, gained 1.84% in the first quarter after losing 2% in 2013. Munis, which suffered through a woeful 2013, gained 3.25% in the quarter, while high-yield munis gained just under 6%. Corporate bonds put in another solid quarter, with high-grade and high-yield alike gaining just below 3%. Even beleaguered TIPS gained 2% on average.
All of this is great, and in many cases even better than stocks did in the quarter, and it goes a long way toward undoing the bond-market damage seen last year.
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The D2 Capital Management Tax Free Income Portfolio is currently yielding 4.68% (Trailing 12 month Tax Equivalent Yield at 28% Tax Bracket, as of 1 April 2014).
The views expressed here are that of myself or the cited individual or firm and do not constitute a recommendation, solicitation, or offer by myself, D2 Capital Management, LLC or its affiliates to buy or sell any securities, futures, options or other financial instruments or provide any investment advice or service. D2, its clients, and its employees may or may not own any of the securities (or their derivatives) mentioned in this article.
The Jacksonville Business Journal has ranked D2 Capital Management in the top 25 of Certified Financial Planners in Jacksonville. The Firm is also a member of the Financial Planning Association of Northeast Florida, the Jacksonville Chamber of Commerce, the Southside Businessmen's Club, and the Beaches Business Association.
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