|
|
|
|
| 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
|
|
|
|
 |
|
|
|
|
|
|
The Fed, The Banks, Money Creation, Inflation, And the Bond Market |
Seeking Alpha - Feb. 22, 2011 - by John Lombardo
For more than a year now, we have heard rumblings that the bond market is the next bubble about to burst, following on the heels of the U.S. equity, credit and housing bubbles. In what can only be described as a classic twist of irony, bond funds have experienced massive inflows of capital in the wake of a collapsing credit bubble and high yield bonds have been one of the best performing asset classes over the trailing three and five-year periods.
As all of this was occurring, US Treasury debt surged as a massive decline in tax receipts and fiscal stimulus on a heretofore unknown scale blew a gaping hole in the federal budget. While the total value of money in mutual funds declined modestly over the three years ending in 2010, bond fund assets climbed dramatically (Chart 1). With interest rates at historical lows, the Fed printing money at warp-speed, isn’t inflation right around the corner? If so, won’t the Fed then have to raise rates rapidly, resulting in the collapse of the bond bubble?
hat certainly seems to be the consensus. Yet the situation is far more nuanced than bond bubble adherents would have one believe. True, bond funds have experienced massive inflows over the last three years. As the global economy continues to recover, they are likely to experience outflows as investor confidence grows, risk appetites increase, and investors seek higher returns.
Yet there is unlikely to be a dearth of buyers for investment grade fixed income securities. The deleveraging of consumer balance sheets has resulted in an increase in the personal savings rate from less than 1.5% in the middle of 2005 to roughly 5.5% last year. After a 20-year decline to the lows of 2005, we expect the US savings rate to average 5-7% for the foreseeable future. Personal savings will likely gravitate to relatively safe instruments such as money markets and short-intermediate bond funds. Additionally, retiring baby-boomers, whose nest eggs are far smaller than they had anticipated following two brutal bear markets in the last decade, are likely to be willing buyers of investment grade fixed income securities. Finally, the financial sector, particularly insurers that need to match the duration of their liabilities and assets, will remain significant buyers of fixed income securities.
For the complete article.
|
|
|
|
|
|
| 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 [+] |
|
|
|
|
|
|
|
|
