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Author: Dwdonhoff Big gold star, 5000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 74759  
Subject: Re: May want to re-think traditional allocations Date: 9/27/2012 1:09 AM
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As far as firms offering it pre-packaged as a service, it's just not true.
Of course it is.

Investment companies invest in the same market as everybody else. They do not have access to bonds, etc. that are not also available to Pimco (BOND), iShares (HYG), Vanguard, etc.
So, yeah, if you wanted to DIY, it's trivially easy to do.

PIMCO offers exactly this publically for their parent company Allianz, & institutionally to various securities & insurance firms. You can read their audited results/returns, and though they don't give away their internal trade mix, they back it (on their own insurance siide) guaranteeing no loss.

They put their money where their mouth is... and they have a *LOT* of money at stake, and backing up their word. Somehow their financial strength & credibility carries a bit more weight than yours.

As far as risk, take a look at the charts of HYG and BND. Take a look at the 5 year chart and take a look at that 40% loss that HYG had.
Why? I don't try to beat the yield pros at their game, I just exploit them.

Dave, you really do yourself a dis-service by pushing this cr*p. your good advice on mortgages is washed away by these claims that a high risk strategy is safe.
Ray, your irrational bias is glaring.

Principal guarantees (zero risk of market loss) are backed by reserves-funded guarantees. Like I said, you can hate it, but you can't beat it.
Dave Donhoff
Leverage Planner
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