If You Own CSJ, We Would Sell - News and Current Events | futures io social day trading
futures io futures trading


If You Own CSJ, We Would Sell
Updated: Views / Replies:227 / 0
Created: by Quick Summary Attachments:0

Welcome to futures io.

(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 90,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors Ė all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you donít need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

Reply
 
Thread Tools Search this Thread
 

If You Own CSJ, We Would Sell

  #1 (permalink)
Quick Summary
If You Own CSJ, We Would Sell

One of the most crowded trades around is short-dated credit - especially short-dated positions in higher yielding debt. Its the Goldilocks trade - not too hot (low duration and things will be ok for the short-run) and not too cold (carry and yield advantage is relatively good) - for every fixed income manager with new money to put to work. However, recent events are bringing stress into the here-and-now and jump risk (or more immediate concerns of significant credit events)is rising. Credit curves have flattened significantly in the last few weeks and are back to 'normal' given spread levels but it is the composition of the CSJ ETF (short-dated credit bond fund) that is most worrisome. Heavy exposure to Supranationals, Agencies, and Financials - all of which we have highlighted in recent weeks as showing significant systemic weakness - makes us and Peter Tchir of TF Market Advisors nervous.

Please register on futures.io to view futures trading content such as post attachment(s), image(s), and screenshot(s).







[CSJ - iShares 1-3Y Credit Bond Fund] is yielding 1.74% which isn't bad for 1-3 year paper, but the portfolio concerns me. Zerohedge picked up on weakness in EIB paper over the weekend. EXPT got downgraded today and bonds are being hit hard (I suspect Norway will step up and buy bonds, but 5 year bonds are down 30 points).



CSJ in my opinion is too weighted towards non corporates. Supranationals represesnt 11.6% of the portfolio (EIB, WB, IBRD, etc.). Agencies make up another 8.2% of the portfolio (KFW, Svensk Exportkredit, KDB, Eksportfinans (charted below), etc) and Financials make up 27% of the portfolio.



Please register on futures.io to view futures trading content such as post attachment(s), image(s), and screenshot(s).


I just don't see that as a good way to earn an extra 1.5% per annum right now. Too much going on in the world, and financials and supranationals, are at the heart of it.



I believe CSJ is just tracking its index, it is just, in my opinion, a bad index to track. 3 year corporates would be much nicer, though I suspect the yield would be smaller as fins in particular give this fund the yield.

Buying CSJ to earn a few extra bps when there is real chance of principal-related pain does not seem like an optimal risk trade to us.

Charts: Bloomberg



More on ZeroHedge...

Reply to share your thoughts on this current event.


Reply



futures io > > > > If You Own CSJ, We Would Sell

Thread Tools Search this Thread
Search this Thread:

Advanced Search



Upcoming Webinars and Events (4:30PM ET unless noted)

Jigsaw Trading: TBA

Elite only

FuturesTrader71: TBA

Elite only

NinjaTrader: TBA

Jan 18

RandBots: TBA

Jan 23

GFF Brokers & CME Group: Futures & Bitcoin

Elite only

Adam Grimes: TBA

Elite only

Ran Aroussi: TBA

Elite only
     

Similar Threads
Thread Thread Starter Forum Replies Last Post
Didn't Sell in May? You Still Might Want to Get Out Now Quick Summary News and Current Events 0 August 17th, 2011 04:50 PM
You Can Still Sell in May and Go Away kbit News and Current Events 0 May 25th, 2011 10:53 PM
[NinjaTrader]    buy sell chart jamfutures Platforms and Indicators 10 July 14th, 2010 08:36 PM
Sell/Exchange Your book here benbrooke Beginners and Introductions 3 February 6th, 2010 08:56 PM
Buy/Sell in an indicator Mindset NinjaTrader Programming 11 October 8th, 2009 10:16 AM


All times are GMT -4. The time now is 08:48 PM.

Copyright © 2017 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts
Page generated 2017-12-16 in 0.08 seconds with 19 queries on phoenix via your IP 54.160.245.121