|
|
|
|
| BondsOnline.com: instant access to and extensive coverage of over 3.5 million stocks, bonds, indexes and other securities covering major and emerging markets and exchanges across the globe. |
|
|
| Bonds Online |
|
|
| 5/10/2013Market Performance |
| Municipal Bonds |
|---|
|
S&P National Bond Index
|
3.00% |
|
|
S&P California Bond Index
|
2.96% |
|
|
S&P New York Bond Index
|
3.13% |
|
|
S&P National 0-5 Year Municipal Bond Index
|
0.70% |
|
|
| S&P/BGCantor US Treasury Bond |
400.09 |
|
| More |
|
| Income Equities: |
|---|
| Preferred Stocks |
|---|
|
S&P U.S. Preferred Stock Index
|
848.03 |
|
|
S&P U.S. Preferred Stock Index (CAD)
|
636.26 |
|
|
S&P U.S. Preferred Stock Index (TR)
|
1,701.05 |
|
|
S&P U.S. Preferred Stock Index (TR) (CAD)
|
1,276.26 |
|
|
| REITs |
|---|
|
S&P REIT Index
|
174.07 |
|
|
S&P REIT Index (TR)
|
425.30 |
|
|
| MLPs |
|---|
|
S&P MLP Index
|
2,469.58 |
|
|
S&P MLP Index (TR)
|
5,428.50 |
|
|
See Data
|
|
|
|
 |
|
|
|
|
|
|
Bond Rating Definitions
| Long-term |
Short term |
Long-term |
Short-term |
Long-term |
Short-term |
|
| Aaa |
P-1 |
AAA |
A-1+ |
AAA |
F1+ |
Prime |
An obligor has EXTREMELY STRONG capacity to meet its financial commitments. |
| Aa1 |
|
AA+ |
|
AA+ |
|
High grade |
An obligor has VERY STRONG capacity to meet its financial commitments. It differs from the highest rated obligors only in small degree. |
| Aa2 |
|
AA |
|
AA |
|
|
|
| Aa3 |
|
AA- |
|
AA- |
|
|
|
| A1 |
|
A+ |
|
A+ |
|
|
|
| A2 |
|
A |
|
A |
|
Upper Medium Grade |
An obligor has STRONG capacity to meet its financial commitments but is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than obligors in higher-rated categories. |
| A3 |
|
A- |
|
A- |
|
|
|
| Baa1 |
|
BBB+ |
|
BBB+ |
|
|
|
| Baa2 |
P-3 |
BBB |
A-3 |
BBB |
F3 |
Lower medium grade |
An obligor has ADEQUATE capacity to meet its financial commitments. However, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the obligor to meet its financial commitments. |
| Baa3 |
|
BBB- |
|
BBB- |
|
|
|
| Investment Grade ↑ |
High Yield / Junk ↓ |
Investment Grade ↑ |
High Yield / Junk ↓ |
| Ba1 |
Not prime |
BB+ |
B |
BB+ |
B |
|
|
| Ba2 |
|
BB |
|
BB |
|
Non-investment grade. Speculative |
An obligor is LESS VULNERABLE in the near term than other lower-rated obligors. However, it faces major ongoing uncertainties and exposure to adverse business, financial, or economic conditions which could lead to the obligor's inadequate capacity to meet its financial commitments. |
| Ba3 |
|
BB- |
|
BB- |
|
|
|
| B1 |
|
B+ |
|
B+ |
|
|
|
| B2 |
|
B |
|
B |
|
Highly speculative |
An obligor is MORE VULNERABLE than the obligors rated 'BB', but the obligor currently has the capacity to meet its financial commitments. Adverse business, financial, or economic conditions will likely impair the obligor's capacity or willingness to meet its financial commitments. |
| B3 |
|
B- |
|
B- |
|
|
|
| Caa1 |
|
CCC+ |
C |
CCC |
C |
|
|
| Caa2 |
|
CCC |
|
|
|
Substantial risks. Extremely speculative |
An obligor is CURRENTLY VULNERABLE, and is dependent upon favorable business, financial, and economic conditions to meet its financial commitments. In default with little prospect of recovery. |
| Caa3 |
|
CCC- |
|
|
|
|
|
| Ca |
|
CC |
|
|
|
|
An obligor is CURRENTLY HIGHLY-VULNERABLE. |
| |
|
C |
|
|
|
|
|
| C |
|
D |
/ |
DDD |
/ |
In default |
An obligor has failed to pay one or more of its financial obligations (rated or unrated) when it became due. |
| / |
|
|
|
DD |
|
|
|
| / |
|
|
|
D |
|
|
|
| WR |
|
|
|
|
|
|
Rating withdrawn for reasons including: debt maturity, calls, puts, conversions, etc., or business reasons (e.g. change in the size of a debt issue), or the issuer defaults. |
Short-Term Prime Rating System
Moody’s employs the following three designations, all judged to be investment grade, to indicate the relative payment ability of rated issuers:
Prime-1
Issuers rated Prime-1 (or supporting institutions) have a superior ability for repayment of senior short-term debt obligations. Prime-1 repayment ability will often be evidenced by many of the following characteristics:
|
- Leading market positions in well-established industries;
- High rates of return on funds employed;
- Conservative capitalization structure with moderate reliance on debt and ample asset protection.
- Broad margins in earnings coverage of fixed financial charges and high internal cash generation;
- Well-established access to a range of financial markets and assured sources of alternate liquidity.
|
| Prime 2 |
Issuers rated Prime-2 (or supporting institutions) have a strong ability for repayment of senior short-term debt obligations. This will normally be evidenced by many of the characteristics cited above but to a lesser degree. Earnings trends and coverage ratios, while sound, may be more subject to variation. Capitalization characteristics, while still appropriate, may be more affected by external conditions. Ample alternate liquidity is maintained. |
| Prime 3 |
Issuers rated Prime-3 (or supporting institutions) have an acceptable ability for repayment of senior short-term obligations. The effect of industry characteristics and market compositions may be more pronounced. Variability in earnings and profitability may result in changes in the level of debt protection measurements and may require relatively high financial leverage. Adequate alternate liquidity is maintained. |
| Not Prime |
Issuers rated Not Prime do not fall within any of the Prime rating categories. |
Short-Term MIG/VMIG Ratings – US Tax-Exempt Municipals
There are four rating categories for short-term obligations that define an investment grade situation. These are designated by Moody’s as MIG 1 (best quality) through MIG 4 (adequate quality). Short-term obligations of speculative quality are designated SG.
In the case of variable rate demand obligations (VRDOs), a two-component rating is assigned. The first element represents an evaluation of the degree of risk associated with scheduled principal and interest payments, and the other represents an evaluation of the degree of risk associated with the demand feature. The short-term rating ssingned to the demand feature of VRDOs is designated as VMIG. When either the long or short-term aspect of a VRDO is not rated, that piece is designated NR, e.g. AAA/NR or NR/VMIG-1.
Issues or features associated with MIG or VMIG ratings are indentified by date of issue, date of maturity or maturities or rating expiration date and description to distinguish each rating from other ratings. Each rating designation is unique with no implication as to any other similar issue of the same obligor. MIG ratings terminate at the retirement of the obligation while VMIG rating expiration will be a function of each issue’s specific structural or credit features.
| MIG 1/VMIG 1 |
This designation denotes best quality. There is present strong protection by established cash flows, superior liquidity support or demonstrated broad-based access to the market for refinancing. |
| MIG 2/VMIG 2 |
This designation denotes high quality. Margins of protection are ample although not so large as in the preceding group. |
| MIG 3/VMIG 3 |
This designation denotes favorable quality. All security elements are accounted for but there is lacking the undeniable strength of the preceding grades. Liquidity and cash flow protection may be narrow and market access for refinancing is likely to be less well established. |
| MIG 4/VMIG 4 |
This designation denotes adequate quality. Protection commonly regarded as required of an investment security is present and although not distinctly or predominantly speculative, there is specific risk. |
| SG |
This designation denotes speculative quality. Debt instruments in this category lack margins of protection. |
|
|
|
|
|
|
| Partner Market Place |
|
|
|
| Stuff to Look at |
Yield and Income Newsletter: A must have for income investors. subscribe NOW
S&P Commentary and Newsletters: S&P
|
|
| BondsOnline Advisor |
Income Security Recommendation January 2013 Issue.
Keep up with monthly, in-depth coverage of fixed income market strategies, commentary, and insights as seen by our sources. Sign up for the free BondsOnline Advisor now!
Unsubscribe here [+] |
|
|
|
|
|
|
|
|
