On Jun 11, 2:11*am, WeathermanBill <n...[at]spam.com> wrote:
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Then you don't know how much exposure the fund has to these. Buying a
mutual fund spreads your exposure.

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https://www.dodgeandcox.com/pdf/shar...ngs_033108.pdf

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Thanks for the input everyone

Weathermanbill

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On Jun 10, 2:11*am, WeathermanBill <n...[at]spam.com> wrote:
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What percentage of the fund's holding is in these bonds?

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WeathermanBill <no[at]spam.com> writes:

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These are NOT the subprime CDOs which are blowing up. These
are generally primary mortgage pass-throughs from conforming
loans (ie. 20%+ down payment, below certain caps, etc).

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Some of them. Those are called "agencies" not "mortgages". And
both are investment-grade or better (ie. principal is safer
than the highest rated corporates). If you are looking at
fixed income, the only thing with more secure principal than
that are US Treasuries.

DODIX has 32% in US Corporates, 43% in mortgage pass-thru.
The mortgage pass-thrus are apparently mostly FNMAs.

DODIX is about as well-managed as a bond fund can be.

The last year it lost money was 1999, when it lost a
whopping 0.8%.

It's lagged its index this last year, probably due to
being light on treasuries - in the face of market
uncertainties, the flight-to-treasuries often makes their
gains, especially against other conservative fixed-income
securities, kind of crazy. But long-term, that fund
has performed very comparably to the lehman agg. I'm
not sure it adds much over just buying, say, Vanguard's
lehman-agg based index fund. Both have very comparable
long-term total returns, similar durations and average
effective maturities, etc. Somewhat different asset mix
(ie. the agg has some treasuries and very little cash),
but both have more mortgage pass-thrus than anything else.

Anyway, that may be more than you wanted to know. The
short story is that mortgage pass-thrus in these things
are *not* the leveraged subprime CDO crappola which has
been blowing up on folks.

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Interested in Dodge and Cox Income (DODIX) so started my research at
their site and found the following holdings:
https://www.dodgeandcox.com/pdf/shar...ngs_033108.pdf

Concerned about the GSE holdings (Freddie Mac, Fannie Mae) as I heard
that both have eased restrictions on home loans. So researched:
http://www.ofheo.gov/newsroom.aspx?ID=422&q1=0&q2=0
The regularatory agency.

Also read:
http://en.wikipedia.org/wiki/Mortgage-backed_security

Really hesitant about putting money into DODIX due to exposure to GSE
bonds. Are these bonds that the GSEs used to raise capital?? Are
these mortgage baked bonds??? What I am trying to determine is what
is the risk I am looking at if I buy this fund.

This is money my wife and I will need in 10-12 years.

Weathermanbill

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