JAAA
Janus Detroit Street Trust - Janus Henderson AAA CLO ETF
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JAAA, and CLOZ if you prefer.
2% in JAAA and VTIP that I count as cash
7-10 years is a big time frame for a HYSA but a bit iffy for the S&P. If I were in your shoes and had any portion that was saved outside the emergency fund that I wanted to put towards the House, I might consider shopping around for a 5-6 yr CD as I’m expecting rates to drop. I could also consider going in with a low-to-medium risk corporate bond, something like JAAA or slightly more risky or with higher yield like JBBB. If I were to go into stocks, I’d probably look into something that uses an option strategy to limit potential losses. QQQH from Neos would be one I’d consider in your shoes.
ETFs that seem fairly common on reddit (SPYI, QQQI) are blocked. its allowed now, but i recall a time when JEPI/JEPQ were blocked. i recently wanted to add some CLO ETFs and almost all of those were blocked. JAAA is the only one i could buy in merrill.
I'm an IT guy myself, done coding and have a pretty good understanding, so I feel like I'm a good person for feedback! A few more thoughts: \* For the "Live Data" - A "Refresh" button perhaps? \* For the 'Call/Put', perhaps a "Buy/Sell"? I generally "Wheel" which this looks to be setup for, but would likely be useful for examining buying and selling Calls vs Puts (might as well cover it all), but I realize this is a free project your using for yourself lol and again, I mostly Wheel, sometimes buy calls, naturally bullish, having bought many puts, tried a bit recently w/ trump tariff stuff and got burnt. Honestly, If I'm not confident enough to be bullish, I buy SGOV/JAAA lol, but I digress. Really looking forward to seeing this when the PUT part works! Feel free to DM me if I can help or just to keep me updated as things progress...
I also prefer PAAA over JAAA. All those funds are more risky during SGOV. Expect volatility between 1-5% during a market crisis.
JAAA (tho I prefer the slightly less risky PAAA) is a solid choice, however it is not really an alternative to SGOV. It is low risk but in very bad times you could possibly even lose on your total return. In the moderate bad times year to date, JAAA is +1.63% versus SGOV's 1.63%. (PAAA is +1.90%.)
Yesterday's action was triggered by a massive selloff in AAPL after Jony Ive announced his merger with OpenAI (note the timing of AAPL's decline compared to the rest of the market). Then, numerous news items showed up, including a $16 billion 20-yr auction, and then, considering treasury yields, several institutions opted to exit. Now, it's not about the US not being a good credit risk. It's about bond investors expecting to receive higher returns because the credit risk is no longer as pristine as it once was. Your perception is on the right track, but keep those suggestions in mind. Also, keep an eye on the credit market. If JAAA or Munis start to move like meme coins again, that's when you run for the hills.
How will this affect ETFs like JAAA and JBBB?
JAAA >> CLO (NOT CDLs, different vehicles) AAA rated ftw on high holding yields
Appreciate the details about the default rates and risk. I was missing that. >What I have been doing is a money market for for Cash A mix of high yield stock dividend funds and loan obligations with a goal of about 10 separate funds. Like a mixture of VMFXX, SPYI/JEPI, and JAAA/CLOZ? Here is my updated scenario based on your info: name | old | new | change ----|---|---|------ SGOV | 50K | 40K | FLOT | 30K | 0K | dropped, underestimated JAAA's stability JAAA | 20K | 40K | CLOI | 20K | 0K | dropped, redundant JBBB | 10K | 0K | dropped, redundant CLOZ | 10K | 20K | SPYI | 0K | 40K | replaces some CLOs, tax efficient vs. JEPI/Q total | 140K | 140K | still 100K in fixed, now 40K in high-div. volatile stocks yield | 5.3% | 7.5% |
$JAAA, $BSV (short end corp plus government) and VGLT (lower fee TLT.) $BLV is long end corp plus govt. I bought some TMF today for a trade.
Forgot to mention that I plan to gradually move the JBBB, CLOZ, and CLOI (40K total) into VOO. That's the "play" money. For now, I want to keep them somewhere with better yields than SGOV. I know you're not supposed to time the market but I want to have that 40K in hand in case the market tanks later this year due to tariffs, inflation, job losses, or Elon Musk sniffing a bad batch of ketamine. It's fine if I'm wrong and miss out on larger gains. Personally I'd rather risk having smaller gains if it means having a chance to buy at a big discount. Basically, 100K will remain in what I assume are reasonably safe options: SGOV, FLOT, and JAAA. I have both FLOT and JAAA in the mix because they are built differently and presumably would behave differently under a stress. A further "diversification", if you will. The other 40K in cash, which I would not need to withdraw immediately and could wait longer for their prices to bounce back, would remain in these higher-yield places and eventually invested into VOO when there is a dip or bear. TLDR: If I wasn't so greedy I'd just store the "need ASAP" money into SGOV and the rest into stock ETFs, but I *want* to time the market and I want to keep the standby cash into a higher yield place the risk of which is reasonably managed.
I would put the 100k in SGOV (because that's your key amount). The rest you can just go 50% JAAA and 50% CLOI. I wouldn't personally go with your choices here. I have a similar need in one of my accounts so what I did was I put the needed money in short duration treasuries and the rest went to more complicated income etfs like SPYI.
The goal is to balance between maximum yield, reduced volatility, and liquidity, so I will likely have access to 100K at any given time without having to sell the stocks. 60K will be in stocks. I won't touch them because there might be a bear market in a few years, who knows. The remaining 140K will be in fixed income assets, of which 40K (JBBB and CLOZ) will pay the highest rate but could default and I could theoretically permanently lose that 40K, leaving me with 100K. I suppose the JAAA and FLOT could also TEMPORARILY lose value but I believe they do not lose value drastically and they recover much faster, which is why I have this "ladder" of safety and risk. Is there a flaw in this logic? I don't want long duration bonds like BND because of how they got decimated in 2022. I cannot rule out another rate hike soon if we have a high inflation so I don't want long term treasuries, but I'm also too greedy to put everything in the "low yield" SGOV. I should also mention that I have taken into account the fact that SGOV is state tax exempt while the others are not. I've also looked up CDs but they seem to pay a lower rate and I'm not a fan of locking up the funds. But I'm open to suggestions.
Russell's explanation is good but I have a little more info[ here](https://www.reddit.com/r/dividends/comments/1kix1x6/comment/mrk3ltw/?utm_source=share&utm_medium=web3x&utm_name=web3xcss&utm_term=1&utm_content=share_button). The biggest risk, by far, with CLOs is liquidity. Further, the tranche ratings AAA or BBB have nothing to do with the credit rating of the underlying assets. JAAA is quite large and liquidity really shouldn't be a big issue.
CLO stands for Collateralized Loan Obligation. It’s essentially a type of debt that has some type of collateral against it. Specifically business loans. AAA and BBB are rankings of the loans, based on credit worthiness of the borrower. AAA is the safest rating, then AA, then A, then BBB, then BB. The lower safety it is, the higher the interest rate charged to the borrower. Companies have packaged these loans into ETFs like JAAA, JBBB, ICLO, CLOZ, etc. Like with the interests rates on the loans, the safer ratings yield smaller amounts while riskier ratings yield larger amounts. Safer ratings also see more stable prices while riskier ratings may see more price movement. JAAA and ICLO are currently yielding a little over 6%. JBBB and CLOZ are currently yielding 8% and 8.5% respectively. I categorize these this way: HYSA is extremely safe with no chance of losing money but pays the smallest yield. Good for essential emergency funds I may need access to at any time / less than 48 hours. AAA CLO ETFs are very safe, may see minimal price movements, but yield more than an HYSA. Good for extended savings (like a house down payment or a vacation fund) and emergency fund amounts that I won’t need immediately since it may take a bit of time to sell and transfer them to a bank to become usable (so 1 month of transfer time in the worst case scenario). BBB CLO ETFs are somewhat safe. They could see more price movement but yield more than the AAA CLOs. Best for cash you won’t need for a while as you may need to wait for price recovery before selling. Basically the “last resort” portion of your emergency fund. These also make a decent conservative investment option when rates are high - an 8% return is nothing to sneeze at.
Your emergency fund should be based on your monthly expenses. Generally recommended amounts are 3 months, 6 months, or even up to 12 months of expenses. This is largely based on how long you think it might take to find a new job if you were laid off. Also, if you’re saving for a house, consider that separate from the emergency fund. You can also keep that in a HYSA but I like AAA CLOs as they yield a bit more and are very low risk. Something like ICLO or JAAA. You can also stagger the emergency fund - 3 months in an HYSA and everything beyond that in AAA or BBB CLOs.
It worked. 1. I stayed put after the 2024 elections — didn’t flinch. 2. I parked fresh income into SGOV and JAAA right after Trump won — played it safe, kept dry powder. 3. Then I waited for the tariff noise to hit — and boom, I dropped 200K straight into AI tech names from Seeking Alpha and some key ETFs. Now I sit back and wait — Fed cuts or tax relief, either one cracks it open. Hope that clears it up.
SGOV JAAA JBBB CLOZ SVWXX all variations to keep liquid is valid in current stream,volatility,government etc.
VMRXX, in my opinion. I got creamed by indexed bonds, nominal and TIPS in the last few years, and have vowed not to do that again. Right now for fixed income I like cash, VRIG, and JAAA. All short term, good quality, and higher yields than other bonds. Both funds have low Beta (volatility).
Why nobody recommending an CLO ETF like JAAA?
no default risk? what AAA CLO tranche is JAAA?
Berkshire has dozens of businesses. It is effectively identical to the sp500 index. In fact BRKA and VOO have same return for the LAST 20 YEARS. but it can fall 50% as it has done many times in past just park it in JAAA at 6.2%, no default risk, then when market down 33% from peak put in 1/3rd of the cash , then if down 50%, put in the rest. It's close enough.
At this time, we are in the very early stages of a credit downturn - I have exposure to CLOs (JAAA, CLOZ) and Mortgage REITS (MORT) etfs, and both have been hit and will continue to underperform (? relative to what ?), but the interest/dividends maybe (?) ok JAAA is the senior tranche and so I am playing this out - there are two threats here. One is recent European regulations, and the other is tariffs related bankruptcies and loan related credit events. CLOZ is a junior tranche. MORT is backed by mortgage loans for REITS and has also been hit hard - it has never even moved the trend up back to pandemic highs. If your risk horizon is greater than 5+ years, 10+ is even better - then you would have gotten back our capital plus more - do not reinvest dividends. I am using in-lieu of long-term care so this "bucket" will be available then
JAAA. Relatively safe corporate bond fund with AAA rated debt. Pays more than HYSA. You might also look into a Tax Free Bond fund particularly if you have a high federal rate or live in a state where yields from your state’s municipal bonds are tax free.
I'm always fully invested but will cash in my more conservative holdings such as JAAA to buy dips.
JPIE, JAAA, PCMM off the top of my head.
i don't think. I just react! I have no clue. I can say when I saw AAA CLOs break down in Feb/early march , I dumped my sizeable CLO positions. JAAA / PAAA. Along with various other things. I've owned a lot of PULS ultrashort bond ETF...it's also broken down in the last week. Slowly declining (It does own some PAAA). I've zeroed it out. Now into < 1 year treasuries and Schwab MMFs. The 5 year chart of the 10Y yield, in early 2022 it also climbed quickly due to Fed Funds rate change I think.
I like the idea of JAAA for my mom's portfolio (she's 88), mixed with her HYSA, existing CDs, treasurys, and other cash equivalents. Thanks!
if horizon is only 2 years, then consider JAAA, paying 6.2% over trailing twelve months, it is run by Janus Henderson Co. and they pick and manage only AAA rated CLOs, collateralized loan obligations, which is just fancy speak for loans to companies, these AAA rated CLOs have a zero default rate, and the worst year for the fund was 2022, the Rate-Apocalypse, it fell 3.2% then recovered within a year. That was very atypical and worst year for US bonds since 1777, so unlikely to repeat. or SGOV paying 4.2% now, but will fall if FED lowers overnight rate. if you have 3-4 years , then consider KRP - Kimbell Royalty Partners, - oil/gas paying >13% dividend and 100% as return of capital, so you pay no tax on it, it just lowers your basis, so when you sell in 3-4 years you will pay the long term capital gain on all your distributions, not the higher ordinary income rates ( in high bracket this is like a 21% tax-effective yield that once can plow back in to get more shares) also it's structured as a C-corp so they send out a 1099-Div like other companies, no K-1 to deal with :)
Compare the outflows from JAAA (Janus Henderson 1.54x AAA CLO vehicle) with the inflows to the Fed through reverse repos. I think you'll find what you're looking for.
First off, you sound like someone who cannot sleep at night because of this. Sell 50%, 60%, 70%, what you need to keep safe to sleep at night. 100% if you need it. Bonds will be fine. Short term for safety. Or AAA-rated CLOs which get you a floating rate that is at about 6% and some change. SGOV is the short term bond fund you should look at. JAAA is one of the CLOs. You can put it into a cash fund as well, if the rate you are getting is something. Take a breath. Be patient. If everything goes back to normal tomorrow, which you and I know it won't you potentially lose some upside. If it crashes, you can avoid all the downside. Now, you have time to learn some stuff. And this is ALL on YOU, but here would be my advice... Go look at value investing, and look globally. You know the US is going to be risky for a while, find stuff that isn't risky. Business may suck for a while in the US, but it won't go away. Some things in the US should be fine, if not great growth engines. Some stuff internationally should do fine as well. Look for things that pay you money every month or every quarter regardless - dividends and other types of income investments. You don't have to make 15% a year to keep up, and I know with the over-valuation in the market today and the tariffs, and the reordering of the global economy that is coming, we aren't likely to see that in the US without some market manipulation ... You can make 8%, and when things settle out, you can make 8%. And you can do it overweight foreign investments. Maybe you don't want so many equities, as they are the riskiest investments. Armchair Income on YouTube is a good place to start for income investing. You will have to spend a lot of time learning, but you will get some ideas for things you never knew existed.
why are you even on reddit then thinking about all this? If you are "ignoring it" for 20+ years...you wouldn't even think about the market at all nor care. You'd look as you got closer to the 20 year mark. I have a small pension from part-time work at the library. It's only like $15,000...but I almost NEVER look at it -- because I chose the 8%/year option rather then a self-directed or whatever. I think that's what it is. I've looked at the balance less then the fingers on my hands over the past # of years. The analogy is if one thinks the "market always goes up" and has a average return of \_\_\_%...then don't bother ever looking! Cause it's "in the bag." As for majority of other liquid assets -- I don't have a 20 year time horizon....much shorter. With that said...don't even need to be in equities for my purposes. That's why I was mostly in bonds / fixed income already / MMF. Part of that was in "safer" investments like AAA CLOs, Which I realized wasn't that safe. I exited those in Feb/early March. JAAA / PAAA. At the same time I exited Pimco multi-asset fund (PHK, PAXS), etc...and some high yield bond ETFs and JBBB CLO. It's not "stressful" per se much. Just study and asset allocation. A game. Would I like to make some extra $$ with the "gambling" percent of my portfolio I've specified - sure. But I've reduced this to now just <1% in equities. If in theory if I missed everything and the market screamed higher the next month or two. or three..I wouldn't lose sleep over that. Don't try to time the absolute top nor bottom. It's just reward-risk analysis. .I do see a good opportunity to buy low - coming soon?
was mostly in bonds/bills already. sold longer held positions (months-years) in early March / late Feb though. Like EPD, GLW (@ 50!). Also higher yield type assets (CLO, HY bond, Pimco HY) - JAAA, PAAA, SPHY. PHK Though got a very very minor burn from entering in small position on Int'l Value stocks though...but dumped remaining just before Friday's bigly down (which means < 2% loss on those positions rather then 7%+ now?) < 1% overall in equity mutual funds. And just keeping that for old time's sake.... now...what to do about my < 5% gold position?
Some gold, bond funds, ultra short corporate (PULS), Swiss Franc, Euro, CLOs (collateralized loan obligations, like JAAA). So far has been sideways for me - but the point is to not get wrecked in this.
Thank you for this information, very helpful! I'll look more into JAAA!
VCSH lost 11% of its value in 2022 though, so there is some capital risk if interest rates rise again or if recession and corporate debt gets downgraded by the ratings agencies JEPI/JEPQ are just bets on +sp500/QQQ, so lots of negative capital risk if markets go down at all Since the Federal Reserve is concerned about inflation, they are unlikely to cut rates much this year so SGOV 4.19% should be fairly stable and there is zero capital risk or need for FDIC insurance since all TBills maybe put 50% into JAAA, has a 6.2% trailing 12 month payout and current 30day sec yield about 5.2%. This fund holds only AAA rated CLO corporate debt, and during 2022 only fell 3.2% and regained it all in next 15 months, so some capital risk but not too bad, and 2022 was the worst year for Bonds since 1777, so unlikely to get another bad year like that for another couple of Centuries. Anything other than Tbills is just degrees of Gambling so it's just about your comfort level.
Depends on how many option plays I have open. But I always have some cash in cash for instant access. Some of it I have in money market funds and some of it I have in JAAA for better performance than money market funds with just slightly more risk. But I also do short puts on margin. Especially the far OTM puts I do before earnings. Because they are usually very far OTM. I do this only when I have enough positions in my portfolio I could sell with a profit to cover for such a put if I get assigned. So it is on margin but without much risk imo
SGOV TFLO JAAA HYSA and collect cash for good entry points. TBills and bonds.
Is it really risky? I feel like investing in BDCs that invest in senior secured loans is far less riskier than many alternatives. If you follow closely the impaired credits and defaults, you can sell early and even then, you don’t really risk loss of your investment, more like loss of the regular return. I also like ETFs of the senior tranches of CLOs. Just invested in JAAA.
Put a third each in JAAA, CLOA and PAAA. All are private credit CLOs. They may all be at a discount to NAV now, at least JAAA is. JAAA may carry more junior debt than the other two.
"Active ETFs" is a broad category that, other than the ARKKs of the world, also includes ultra short bond funds like JAAA, JPST, and PULS, covered call like JEPI, and all the buffer funds out there (there are a lot). So this story might as well read "ETFs continue to see inflows".
JAAA JBBB BIL in equal parts if you want “safe” average 6%
Since you aren’t sure if or when you might need $ to buy rentals, I’d go 1/3 SGOV, 1/3 PULS, 1/3 JAAA, earning around 5.6% or on 200k about 11.2k per year. Liquid and safe yet earning decent return given your circumstances.
I’ve got a small business (a franchise that is pretty passive) I’ve got a rental apartment, but I used to have 5. I sold them off because they were a headache. My portfolio is a mix of ETF’s and a few individual stocks. BRK, JPM and VTI have done the best but I have large positions in SCHD. My less risky stuff is SGOV and JAAA.
I’m in a mix of JAAA and SGOV for reasons articulated by others in the thread. JAAA offers above 5% with slightly more risk
JAAA make your 6% and wait out all the craziness
VOO 30%, SCHD 30%, VXUS 30%, JAAA 10%. Thats the easy answer. Make sure to reinvest the dividends.
I see an increase in the potential for stagflation. The stagflation risk seems more real to me. I am speaking only to the risk. I am not saying that I believe it will happen. I think the general business environment is quite challenging. Inflation persists, consumer confidence is down, unemployment is likely to increase, fiscal policy is unreliable, long term rates are high, short term rates are unlikely to decline anytime soon. And the housing market, which has a tremendous multiplier effect on the economy, is weak and in decline. I am taking profits from my “fun money” and rolling that into CTA (managed futures). I will continue selling out fun money positions and grow my CTA position. I’m sticking with my other positions, including BDCs and CLO ETFs (CLOZ, JAAA). No panic. Acting with intent. I’m retired, I want protection against a big drawdown.
Generally, the share value drops after the monthly payout, and then slowly rises through the month until the next month's payout. It's easily seen in a graph. JAAA is very secure and pays slightly more than cash. The real value is in the compounding. It's a safe cash alternative. There is more risk than cash, of course.
Don't risk it in stocks. Check out FFRHX and JAAA, which invest in short-term high rated commerical paper. You'll earn 5% to 7% in very stable funds.
Luckily I sold $500k of Avuv last 2 weeks and put it all into JAAA. It keeps going down a penny a day since I bought for some reason.
I'm retired, so I want to avoid a significant drawdown. I like a "managed futures" holding, CTA. I hold CLO ETFs, such as JAAA and CLOZ (there are plenty of others). Also, I like BDCs. I keep a basket of BDC holdings, anchored by MAIN. I consider SPHQ and FDVV as my "core" holdings. I'm building those as I exit individual equities. Basically, I've trimmed my "fun money". I'll continue to use the "fun money" without regard to possible recession, stagflation, and/or bear market.
consider 50% SGOV pays 4.3% and 50% JAAA, pays 6.2% which is ETF that holds triple A quality CLO, or business loans, it fell by 2% during 2022 when FED increased Funds rate from 0.25% to 5.25%, but it then quickly came back up to even above baseline within 1-2 years. So it handled a once in a generation stress very well. This will give you a blended 5.25% yield with your money being liquid, you can sell both ETFs and get the cash into your account in 1 day, and it would have almost zero risk of loss. How much you should keep in Emergency Reserve Bucket is situation specific, but some people keep too much as they don't consider the likelihood of job loss and time to rehire realistically, or they don't realize they only need the cash for the deductible to kick in on the insurance not the whole amount for a new car or emergency purchase etc, good luck :)
Take a look at some of the AAA rated CLO funds like CLOA, CLOI, or PAAA or JAAA, etc.. those are paying out around 5.5% - 6% APY currently. or if you have the appetite, check out the BBB rated ones for even higher returns. (7% - 9%)
Some conservative investments: You might consider a "managed futures" ETF. I have a position in CTA and I am quite pleased with it. I like BDCs. I have a basket of BDC holdings. The ETF PBDC is an easy way to take a BDC position. CLO ETFs also work for me. I like CLOZ and JAAA, I have much more in CLOZ than JAAA. Regarding individual equities, I'm pleased with LRN. I think it's a pretty conservative holding. UBER has a strong outlook. I bought in completely below $80 though. AMZN and TSMC have already been mentioned.
JAAA yields almost 6% and is fairly liquid.
JAAA holds collateralized loan obligations. These are loans with a higher than average default risk, given to entities with low credit ratings and such. The return is higher because the risk is higher. It's like the stuff that collapsed during the 2008 financial crisis, only not real estate. SGOV buys US treasuries which are essentially the lowest risk investment possible.
Hi, I live in a high tax state and city (NY) and I am trying to compare the taxable returns of two ETFs, SGOV and JAAA. Nearly all of SGOVs income is not subject to state and city taxes and all of JAAA's is. SGOV has an SEC 30-day yield of 4.27% and JAAA's is 5.6% If my NY state and city taxes are 6% and 3.8% respectively does that mean the effective return of JAAA is around 5.05% (5.6% x 9.8% = 0.5488, 5.6%-.5488 = 5.05%). \*\* \*\*For the purposes of this example I am assuming the federal taxes of each will be roughly the same and cancel each other out. Is the gist of my math here correct or am I way off? Thanks for your help!
JAAA has 5.6% SEC yield with little risk
COLs like JAAA and preferred stock PFF and bank loans PRFRX. All carry some risk.
Mix some JAAA and JBBB. Reasonably safe and 6+ %.
It’s a CLO (collateralized loan obligation) ETF, a collection of floating rate loans that are repaid by companies. Took a quick glance and JAAA is 95% AAA grade. If I understand that correctly, it’s generally safer, but not as safe as treasuries
Maybe consider JAAA. It is at 6.32% today and has been quite stable, but doesn’t mean it wont drop and it is not backed by fdic or anything like that. Look at the chart and decide for yourself.
I can’t get with the “all-or-nothing” thinking. Thinking like that and acting accordingly is nothing but trouble in life, including investing. Selling everything, all at once, I can’t support that. I am shifting to less risk, for me it’s a process. I’m carefully selecting positions to reduce holdings, and sliding those funds into safer investments. I evaluate each holding. For example, I reduced my SPHQ position, because I believe that it will see a large drawdown in a general market correction. On the other hand, I believe that NVDA is a great company, and that investing in AI is an opportunity of a lifetime for me. I’m not selling any NVDA. I like CLO ETFs, I chose JAAA and CLOZ. I also like “managed futures” funds, in particular CTA. I didn’t know about ICSH, that looks interesting. I can’t see how “I’m selling everything” could be an optimal solution to a riskier market environment.
Sure. I've been monitoring new issues on Fidelity's site for a couple of years. They are callable, and I've got issues with call dates between '25-'28. It's a bit like a ladder, only I'm fine holding til maturity at those rates. Even today, there are 6-6.5% new issues with A to BBB ratings. For funds, look at JPIE or JAAA, and don't reject high yield funds like SPHY or JBBB. There are many others.
I have a variety of individual corporate bonds with coupon between 6-6.7%. Also tickers SPHY, JBBB, JAAA, JEPI, JEPQ, SPYI, PFFA. Cash is in FZDXX money market fund.
I'm mostly in equities + covered calls. Concentrating more on fixed income. JAAA, PFFA, MSDL. Sold ultra-short treasury funds & bought ICSH.
I’m moving out everything I can and into funds not backed by treasuries for my similar investments: PULS (ultra short corporate bonds), PAAA and maybe JAAA (AAA rated collateral loan obligations). I might even get a better return in funds I would never have researched.
Kind of a weird mix. Getting out of most of my treasuries or anything backed by treasuries until the adults are back in charge of the treasury department. So, a little S&P 500, some equal weighted, some ultra short corporate bonds, some AAA CLOs. PULS, PAAA, maybe some JAAA, SPMO for a little excitement, RSP, a little SCHB for those random small amounts left in cash. I have a little BKLC still limping along. And hopefully my t-notes and savings bonds will still be there, that I can’t redeem yet.
I’m nervous about having money in treasuries right now with the Elon mob in there, so all the treasuries I can move out, I started buying PAAA and PULS. I also like JAAA and might buy some next month. Funds not based on treasuries. And I’m slowly dollar cost averaging back into the S&P 500 a bit each month. I’m already in retirement but don’t need the extra income. I need it to grow for future long term care, but as safely as possible. I sold my equities Thanksgiving weekend during the high and put them into 4 week tbills and some savings bonds, to wait and see what happened with Trump, figuring the treasury department was the safest place for the money. No longer, unfortunately. It’s frightening. But I think the ultra short bonds and AAA CLO ETFs are a good place and should earn more than the tbills, too.
your comparison off your comparing Bank Loans to Equity CLO's you need to be using DEBT Clo's like PAAA or CLOZ or JAAA or JBBB to BKLN and SRLN(or FLRT or FLBL)
This is what I’m going to move my tbills into. I’m nervous about the treasury department. Been researching and I like JAAA. I also like PULS. I actually sold most of my equities thanksgiving weekend, and moved the funds into treasuries to wait and see what happened with the new administration, thinking it was the safest place, but now insanity reigns at the treasury department. So, I’m moving it back into ETFs that are pretty safe and not based on treasuries, and I may even get a bit higher of a return. Then I intend to slowly dollar cost average back into index funds.
I’ve been using VMFXX for my longer term cash reserves. I am giving serious consideration to moving most of it into JAAA.
I really ought to be in JAAA too! I’ll take care of that on Monday. I’m also retired. It’s wonderful, enjoying easy living in Atlanta!
As a retired new age hipster, I hold quite a bit of the CLO’s including CLOI besides the ones you mentioned. During 2022, the S & P was down over 18%. JAAA with total returns was slightly above water.
A couple of good short duration, high quality bond funds are VRIG and JAAA. Low risk (i.e. low beta), and have higher yields than MMs or CDs. I have quite a bit in these two now, money I used to have as cash in Vanguard MM fund. I also have a couple safe preferred stocks yielding about 8%, and I purchased at discount to par. These preferreds are \*sort\* of a bond proxy. My very investment savvy son-in-law, an MBA, did a deep dive into all these investments, gives his approval, and owns a couple himself. Dude had articles published on a prominent investing website at just age 28-30, and I trust his advice.
As an alternative, I suggest that you research JAAA, JBBB, and CLOZ. I hold JBBB and CLOZ. JAAA is lower risk and hence lower return.
Thank you so much for this post. It's tough to research alternatives like this because general filters get cluttered with cryptocurrency nonsense. What do you think of JAAA/BBB?
Why do you like PAAA better than JAAA? Seems less liquid.
You could put it into a CLO CLOZ offers a 8.5% yield and it basically moves right to up on a chart. JAAA is also a good one. Not financial advice but smth to look into
For pure cashflow generation on a $5M NLV account you may consider a "cashflow ladder" with mix of different income generating securities. For me that consists of SNSXX (or your favorite tax favorable Treasury bill MM) ARCC, SEIX, IBHE and use CC / CSPs on a small basket of stocks to "ice the cake" with rate of return. Blended I am making 6.73% Tax Equivalent Rate on the following. Core Positions: SNSXX (60%), IBHE (25%) Supplemental: ARCC (5%), SEIX (5%), CC / CSP (5%, I write on F and NVDA) On $5M a 6.73% rate nets \~$28k per month (pre-tax) and $336k / yr according to my calculator. If FOMC continues to drops rates, my plan is to rebalance a bit of the MM into JAAA.
Never do that, specially with funds or etfs... JAAA invests in collateralised loan obligation rated AAA. Never trust raitings... rember 2008
I have bought SBC.to MCAD.to JAAA and UTES this week
I just bought $28000 of JAAA I don’t understand it well though or what it invests In
It's a good question, I think. I'm very open to new ideas on this. I was happy with 5%+ in a money market, those rates are now in the 4.5% range now though. I'm not excited by 4.5%, on the other hand, I do like the complete liquidity. I've been parking in Utilities ETFs - RSPU, FUTY, UTES. That's been OK, not great though. I'm thinking of utilizing JAAA. Over 6% yield, very safe.
I would go bonds all the way or a safe JAAA or SGOV
I have the same 2.875 rate. For savings I keep 80% in SGOV and 20% in JAAA.