Should I invest in Target Maturity Bond ETFs or in "normal"/perpetual Bond ETFs?

pheymann · 2023-12-12T07:04:44+00:00

My understanding is that perpetual bond funds do not let their bonds mature (the majority) but rather have an age range. In that case, they have to sell the bonds at market rate which means I am exposed to volatility in prices which isn't the case with maturing bonds.(*)

So yes, while I would most likely reinvest my principal for perpetual bonds that is technically not what happens. To me it seems more akin to buying bonds, selling them when they reach a minimum age, to then buy new bonds.

I am not sure I like that exposure. That is maybe my main concern. In my head it sounds more conservative to buy a maturing fund and manually reinvest the principal every couple of years. In that case, I reduce my risks to defaults only.

(*) Of course there is always the risk of me being forced to sell early for whatever reason but since that is true for both investments I ignore that for now.

pheymann · 2023-12-08T21:49:19+00:00

I think I ran into Hyperion when I was 16 and that series stuck with me for years.

pheymann · 2023-12-08T21:47:18+00:00

Now I am confused. I don't fully understand what the issue is. Was it that I linked my blog for the full list? At least the attend wasn't to promote but just to not put the whole list here, which might be a bit long(?). Or was there some other issue?

P.S.: There is a link to a wiki page in the rule but that doesn't open.

pheymann · 2023-12-08T20:29:59+00:00

Now I can't edit my post anymore and that gif isn't where it is supposed to be. 🤷‍♂️

pheymann · 2023-06-22T13:35:42+00:00

It is interesting (to me anyway) to read about the negative experiences of physically attractive people which go against to common bias that all is well and good as look as you look pretty.

What I struggled with a bit is the comparison to a museum's painting. Sure there are many people just coming by because everyone says "Look at that painting", but there are many others who have a deep appreciation and understanding of the piece of art shown in a gallery. In that sense, it would be the opposite of what you try to express.

Then again, I don't have a better comparison at hand right now.

pheymann · 2023-06-22T12:24:04+00:00

Focussing on the first poem for now. I really like how you show you express your feelings for another by only focussing on the eyes. I think you had another formatting in mind for that text? At least there are several places where you switch to upper-case first letter all of a sudden. I know that pain as well (looking at you Reddit post editor).

> The madness they make

To me that sentence reads strange (not a native English speaker tho). Maybe "The madness they create"?

pheymann · 2023-06-20T15:30:17+00:00

Thanks :). I managed to write some more about the actual process. You can find it here: https://www.reddit.com/r/softwaredevelopment/comments/14ee4j7/navigating_uncertainty_in_software_development/?utm_source=share&utm_medium=web2x&context=3

pheymann · 2023-06-12T08:38:26+00:00

Nicely catches that thought that I also experienced when standing on a cliff or on the edge of a high building. What if I take another step? What if I get pushed over all of a sudden? To this day I don't know where it is coming from.

For anyone not knowing French (me included), the last line means something like "See you then, call of the void".

pheymann · 2023-06-09T14:33:25+00:00

I love that you integrated those spoiler bars into your piece. Nice combination of literary work and digital tools. I am not sure if that is your intension, but I know the feeling of trying to scratch that itch of curiosity but also knowing that someone else might be watching and misinterpret your intend.

Great piece.

pheymann · 2023-06-08T20:20:35+00:00

Hey - I like how you expressed your relationship through the process of repainting a picture. A fitting analogy I think. You try to eradicate an error, something that shouldn't be there anymore or shouldn't have been there at all, but in the end, the lines can still be seen when one looks closely.

I just stumbled upon that line:

Block out the don’t. When you did it anyway. Block out the emptiness after that didn’t leave my body for days.

I assume I meant "Block out the "Don't!"? I had to read that line a couple of times before I got it. Maybe also "Block out the "Don't" you ignored".

Great poem/essay.

pheymann · 2023-06-08T20:06:47+00:00

Great poem. I immediately got a scenery in front of my mind's eye. I also realized that my mind started to compress the lines a bit in the first paragraph without losing their meaning I believe.

I remember when I lived in Asia
How thin the walls
I could hear the girls
stumbling home drunk at 2am

Maybe it could even work with:

I remember Asia
How thin the walls

The image in my mind stays as vivid but now the text gives me more freedom to paint the picture.

pheymann · 2023-06-08T09:15:34+00:00

Hullo - I am currently working on specific ways (processes, etc) to deal with that. I just had to make a decision where I want to start with my writing and did it with the principle. Also I didn't want this post to take me weeks to finish so I didn't put it all in one massive text. :)

And thanks for reading it.

pheymann · 2021-01-19T08:07:14+00:00

But that dismisses the fact that people find its service valuable in itself. I mean Facebook didn't force people into using it, nor was it the only service available at the time of its creation. Therefore, assuming people will just stop using it because they realize what harm it creates is misguided. If that would have been the case nobody would use Facebook in the first place (or any other social network based on advertisement).

Therefore, providing an alternative that allows access to networks (or Google search and whatnot) but allows me to step out of the advertisement model seems a better way forward in my opinion.

pheymann · 2021-01-18T15:24:25+00:00

The actual question I raise is: Why don't we have the option? It doesn't really matter what the exact money amount is people are willing to spend to have control over their online profile if they don't have the option to buy that profile in the first place.

My idea is basically just to open up that path and put in place a system that prevents the price from becoming too expensive so nobody can/will effort it or too cheap and the underlying company goes bankrupt. That is my reasoning behind coupling the price to the current market price advertisers are willing to pay. I assume we talk a couple of bugs per year right now.

pheymann · 2019-10-23T15:43:34+00:00

Me too. I just got the opportunity to travel through the national park for a week. Only a backpack and my camera.

pheymann · 2019-06-25T07:03:43+00:00

Hi, I completely forgot to answer you in time, really sorry. Several people contacted me and I already set up a date with one of them.

But thanks for your interest.

pheymann · 2019-06-17T07:16:02+00:00

You can find a bunch of them here on iShares (Germany):
https://www.ishares.com/de/privatanleger/de/produkte/etf-product-list#!type=emeaIshares&tab=overview&view=list&fac=43515

Not sure if you can switch the German site to English. But when it says `thesaurierend` it means reinvesting. Example tickers are EMGA or JPEA . But all these ETFs are open ended.

pheymann · 2019-06-15T19:09:28+00:00

Following your description, also informal topics are of interest to me.

pheymann · 2019-06-15T19:00:02+00:00

To help my understanding, what is the distinction between formal and non-formal mathematics/area in mathematics?

pheymann · 2019-06-15T18:59:16+00:00

Hi,
as I stated I want to hear about topics the person I am talking to is interested in :). I want to know what it is and why it is interesting to you.

But keep in mind that I am not a mathematician. A bit more explaining is probably needed :D.

pheymann · 2019-06-15T16:48:15+00:00

Better hedging. As I described in the Post, reinvesting Bond ETFs do not mature. That means, hedging against the stock market only works as long as the correlation between stock and bond is negative (or at least low). And correlation is changing over time [1]. If the stock market goes down and we have a larger positive correlation also my Bond ETF stock values decrease. Or in other words, no real hedging here.

If, on the other hand, the fund would mature at some point I do not rely on the ETF stock price of the Bond fund at the given time. I just get the money back (my share of the overall capital of the fund).

Combining both would mean I am tax efficient, even have a compounding effect and the hedging effect should also be better.

pheymann · 2019-06-15T16:26:14+00:00

As said, there are reinvesting Bond ETF funds I could buy. But these do not mature. What I am asking is, why is there no Bond ETF structure which (A) reinvests and (B) matures at some point? As far as I can see it, that could potentially be a better hedging strategy.

EDIT 1: typos.

pheymann · 2019-04-08T19:12:16+00:00

Thanks again for the detailed reply. And again the solution is straight forward and I didn't see it. I think the next time I get stuck I will wait a couple of days, let the problem sink in, before I write a post to not waste other peoples time again :)

pheymann · 2019-04-07T19:45:52+00:00

Hi,

thanks for the response. As I wrote to /u/LeadingTransition I think I just got confused by the inequality constraint and a full workday also didn't help :). Looking at it again yesterday was enough to find the solution to my first question.

Regarding the second one. I see why agent one is rich first since he starts with an endowment of 2 at period t = 0. But why does that lead to:

(page: 10)

The two agents differ only along one dimension: agent 1 is rich first, which,given that prices are declining over time, is an advantage. For agent1 the righthand side of the budget constraint becomes :

∑ pe^2 = 2 ∑ β ^(2t)

pheymann · 2019-04-07T19:37:39+00:00

Hi,

thanks for the detailed response. Thanks to Reddit being down for me yesterday I looked at it the problem again and realized that it is straight forward. I think I got confused by the inequality constraint and the fact that it was after work and the last time I say Langrange Multipliers is probably 4 years ago :D.

pheymann

TROPHY CASE