|
|
|
|
| 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 |
|
|
| 5/22/2013Market Performance |
| Municipal Bonds |
|---|
|
S&P National Bond Index
|
3.03% |
|
|
S&P California Bond Index
|
2.98% |
|
|
S&P New York Bond Index
|
3.16% |
|
|
S&P National 0-5 Year Municipal Bond Index
|
0.71% |
|
|
| S&P/BGCantor US Treasury Bond |
398.66 |
|
| More |
|
| Income Equities: |
|---|
| Preferred Stocks |
|---|
|
S&P U.S. Preferred Stock Index
|
844.16 |
|
|
S&P U.S. Preferred Stock Index (CAD)
|
647.00 |
|
|
S&P U.S. Preferred Stock Index (TR)
|
1,696.39 |
|
|
S&P U.S. Preferred Stock Index (TR) (CAD)
|
1,300.18 |
|
|
| REITs |
|---|
|
S&P REIT Index
|
173.06 |
|
|
S&P REIT Index (TR)
|
423.26 |
|
|
| MLPs |
|---|
|
S&P MLP Index
|
2,506.17 |
|
|
S&P MLP Index (TR)
|
5,511.54 |
|
|
See Data
|
|
|
|
 |
|
|
|
|
|
|
Bank-Supported Muni Market Faces ‘Headwinds,’ Moody’s Says |
Bloomberg - April 4, 2012 - By Martin Z. Braun and Greg Chang
The market for bank-supported municipal debt, including variable-rate demand bonds, may face “headwinds” this year because of possible cuts in bank ratings, Moody’s Investors Service said.
Top short-term ratings for both Bank of America Corp. and Citigroup Inc. (C) are under review for a downgrade, according to the credit-rating company. Losing the top grade may cause interest rates on $34.7 billion of municipal bonds to spike as money-market funds redeem the debt and dealers can’t resell it, Moody’s said in an e-mailed statement.
“Issuers whose remarketings fail or who are unable to arrange extensions or replacements for expiring support facilities may face severe cash-flow pressure as they confront higher interest cost and accelerated amortization,” Moody’s said in the report.
During the credit crisis, interest rates on so-called variable-rate demand bonds, often owned by tax-exempt money- market funds, surged after bond insurers and some banks lost their top-credit ratings. The increase in borrowing costs hit already cash-strapped cities, hospitals and schools.
Standby Agreement
Variable-rate demand bonds are long-term securities offering short-term interest rates because investors can demand their money on short notice and turn the bonds in for sale to another buyer. To assure investors there will be money available, governments hire banks to provide standby bond purchase agreements or letters of credit.
The lingering effects of the recession that ended in 2009 and Europe’s sovereign debt crisis have put stress on bank credit ratings.
New regulations intended to strengthen the financial system may also curb banks’ appetite for providing credit support, Moody’s said.
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 [+] |
|
|
|
|
|
|
|
|
