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Subject:  Re: Yesterday’s Damage? None to Bonds Date:  5/7/2010  1:31 PM
Author:  charliebonds Number:  30777 of 35593


Thank you for taking my post and then going deeper with it by looking at a variety of bond-index proxies, not just the single broad one I used.

Now let's look beneath the hood a bit. The sub-classes with the least credit-risk did best, as would be expected. Those most exposed to credit-risk did the worst, as would be expected. But this is where being a buyer of individual bonds, rather than an indexer, might pay off. Though JNK has tanked hugely, my own holdings, a substantial portion of which are less than investment-grade, were barely affected. My day-over-day change for my E*Trade account, all of which are bonds, was a mere $8 on a $65,600 account, all of whose 54 holding (but two) were acquired between Feb 6, 2009 and April 28 of this year. Of those holdings (listed below by issuer), all but one are corporates, and most are "Industrials", (which is a group I strongly prefer for having real, underlying assets) rather than "Financials", and some are "Foreign" (giving me a bit of diversification that way).

I haven't done a break-down by credit-risk tranche, but I'm guessing that for this account (one of three in which I do active buying) the split between invest-grade an spec-g