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| 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. |
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| Bonds Online |
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| 5/10/2013Market Performance |
| Municipal Bonds |
|---|
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S&P National Bond Index
|
3.00% |
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S&P California Bond Index
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2.96% |
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S&P New York Bond Index
|
3.13% |
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S&P National 0-5 Year Municipal Bond Index
|
0.70% |
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| S&P/BGCantor US Treasury Bond |
400.09 |
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| More |
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| Income Equities: |
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| Preferred Stocks |
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S&P U.S. Preferred Stock Index
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848.03 |
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S&P U.S. Preferred Stock Index (CAD)
|
636.26 |
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S&P U.S. Preferred Stock Index (TR)
|
1,701.05 |
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S&P U.S. Preferred Stock Index (TR) (CAD)
|
1,276.26 |
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| REITs |
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S&P REIT Index
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174.07 |
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S&P REIT Index (TR)
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425.30 |
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| MLPs |
|---|
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S&P MLP Index
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2,469.58 |
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S&P MLP Index (TR)
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5,428.50 |
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See Data
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Municipal Bond Market Healing |
MORNINGSTAR - Feb. 28, 2011 - By Dave Sekera, CFA
Aside from Illinois' new issue, there were encouraging signs last week in the new issue market for traditional municipal bonds.
After a rough start because of increasing tensions in the Middle East, last week ended on a relatively positive note. The credit market bounced Friday and recaptured most of the week's losses.
For the week, Morningstar's Corporate Credit Index only widened 1 basis point to +138. The overseas tensions sent investors to safety, resulting in a decline in interest rates as the 10-year and 30-year Treasury bonds rallied 16 and 18 basis points, respectively. This more than offset the rise in interest rates earlier in the month.
Whether it was due to the holiday-shortened week, the backup in credit spreads, or concerns that events in the Middle East could get out of hand, the new issue market was relatively subdued. As earnings season comes to a close, barring an increase in Middle East tensions, we expect the new issue to pick up in earnest this week. New issues have been generally well received as portfolio managers find them to be the easiest way to put money to work, as supply in the secondary market continues to be constrained.
Municipal Bond Market Trying to Stabilize
Municipal bond funds experienced another outflow last week as investors continued to reallocate funds away from tax-exempt municipal investments and into taxable fixed-income funds. Emblematic of the credit concerns in the municipal bond market, the spread over Treasuries that Illinois paid on its new issue taxable municipal bonds was significantly wider than similarly rated corporate bonds.
While the average credit rating the agencies assign to Illinois general obligations is A+ (the second-lowest-rated state behind California), the credit spreads on Illinois' new taxable municipal bonds tell another story. After being delayed earlier in the month, Illinois finally issued $3.7 billion of taxable municipal bonds to finance pension payments last week. The wide credit spreads required to sell these bonds highlight the market's significantly different perception of credit risk than the agencies. As a comparison, the longest-dated tranche of eight-year bonds sold at +240 basis points over Treasuries, while Morningstar's BBB- corporate bond index stood at +190.
For the complete article.
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Income Security Recommendation January 2013 Issue.
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