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Thread: (AGG) F bond closing 11/29/2011

  1. Default (AGG) F bond closing 11/29/2011

    Tom, (AGG) Bond fund chart showed a closing at 109.66 yesterday 11/29/11 which was up .04% from previous days close, however, TSP share price posted this fund was down .09% on the day which equated to a negative -1.4 cents per share. I conatcted TSP for an explanation and they sent a written inquiry and said I should get a response within 10 days. Tom, I frequently calculate the days share prices from the charts before they are posted and have never seen such a large discrepancy (.13% swing). Do you have any thoughts or an explanation from your vantage point while I wait on TSP's response? Thanks and I really enjoy and appreciate your daily analysis. I have recommended tsptalk.com to many of my co-workers and they also visit this site regularly. Keep up the good work! Look forward to hearing from you.


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  3. #2

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    Default Re: (AGG) F bond closing 11/29/2011

    Quote Originally Posted by Deuciswild View Post
    Tom, (AGG) Bond fund chart showed a closing at 109.66 yesterday 11/29/11 which was up .04% from previous days close, however, TSP share price posted this fund was down .09% on the day which equated to a negative -1.4 cents per share. I conatcted TSP for an explanation and they sent a written inquiry and said I should get a response within 10 days. Tom, I frequently calculate the days share prices from the charts before they are posted and have never seen such a large discrepancy (.13% swing). Do you have any thoughts or an explanation from your vantage point while I wait on TSP's response? Thanks and I really enjoy and appreciate your daily analysis. I have recommended tsptalk.com to many of my co-workers and they also visit this site regularly. Keep up the good work! Look forward to hearing from you.
    Theft.

    Another answer is that it means a heck of a lot of money is being transferred into or out of Bonds on any given day, at the same time there is a lot of volatility in the price. Not 100% of the F fund is always invested in bonds. A small amount is always in a pool in cash on the side.

    TSP's agent runs a three day slush fund- we've talked about it before-- that is required to be maintained by SEC rules. It's the money set aside until a transaction clears. If there is an abnormally large amount of money in the three-day pool, then it may show up as a deflection or deviation off the fund that the TSP is supposed to mimic. It rarely is more than a fraction of a cent, but at times where there are both large volumes over several days, and large movements over several days, it can compound to be enough to show up as an actual penny or two or three.
    Last edited by James48843; 11-30-2011 at 09:59 AM.

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  5. Default Re: (AGG) F bond closing 11/29/2011

    I appeciate your expedient response to my question or concern and the cash slush fund (which I was ignorant of) does seem to make the most sense of what may have occurred. I will let you know what response I get from TSP.GOV in order to compare their explanation to yours. Thanks again!!

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    Default Re: (AGG) F bond closing 11/29/2011

    Quote Originally Posted by Deuciswild View Post
    Tom, (AGG) Bond fund chart showed a closing at 109.66 yesterday 11/29/11 which was up .04% from previous days close, however, TSP share price posted this fund was down .09% on the day which equated to a negative -1.4 cents per share. I conatcted TSP for an explanation and they sent a written inquiry and said I should get a response within 10 days. Tom, I frequently calculate the days share prices from the charts before they are posted and have never seen such a large discrepancy (.13% swing). Do you have any thoughts or an explanation from your vantage point while I wait on TSP's response? Thanks and I really enjoy and appreciate your daily analysis. I have recommended tsptalk.com to many of my co-workers and they also visit this site regularly. Keep up the good work! Look forward to hearing from you.
    I saw your question in today's blog comments, but sorry I missed it here. For the record and anyone reading this thread, here was my response with replies...

    It's like the I-fund fair value situation. The bond market closes an hour before the stock market and the action in the last hour of trading will affect the price of the F-fund. If they are wrong they'll adjust accordingly.

    Quote Originally Posted by Deuciswild;bt4467
    I appreciate your response to the bond fund, however, the chart this morning confirmed the 109.66 closing on 11/29/11 and this mornings open was at 109.59. This does not reflect nor support the kind of adjustment you are suggesting. Thanks
    It's not the bond market that adjusts. It will be the price of the F-fund. Watch today's closing F-fund price. You'll see. (that is unless there is another big move in the stock market in the last hour of trading)
    Tom
    Market Commentary | My Blog | TSP Talk Plus | |

    I am not a Registered Investment Advisor and this is not investment advice. Please do your own due diligence.

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    Default Re: (AGG) F bond closing 11/29/2011

    Quote Originally Posted by tsptalk View Post
    It's like the I-fund fair value situation. The bond market closes an hour before the stock market and the action in the last hour of trading will affect the price of the F-fund. If they are wrong they'll adjust accordingly.
    Did you see that today, the AGG was down 0.26% and the F-fund was down just 0.09%? That's what I meant by adjusting.
    Tom
    Market Commentary | My Blog | TSP Talk Plus | |

    I am not a Registered Investment Advisor and this is not investment advice. Please do your own due diligence.

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