|
|
|
|
| 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
|
|
|
|
 |
|
|
|
|
|
|
Junk Bonds Jump Back To 2007 Levels |
Forbes.com - April 26, 2010 - by Matthew Craft
High-yield debt approaches par for the first time since before the crisis.
Consider it another sign that investors have regained their appetite for debt. The riskiest class of corporate bond has inched close to par for the first time since 2007. The high-yield bond market now trades at 99.48 cents on the dollar, according to a Bank of America-Merrill Lynch index, its highest price since the financial crisis hit in 2008.
Hitting par, or face value, is a reflection that investors think they have little to fear.
"The market is definitely indicating that the economy is on a solid footing," says Martin Fridson, head of Fridson Investment Advisors in New York. "You can't rule out entirely a slide back into recession, but the likelihood of that has diminished significantly."
More support for this view came from the National Association of Business Economics' survey of its members on Monday. Some 37% of respondents said their firms planned on hiring over the next six months, compared with 29% in the January survey.
Even in the face of news that troubled other markets – federal regulators' fraud charges against Goldman Sachs, Greek's debt crisis, a volcanic eruption in Iceland – the market for risky debt has looked resilient, Citigroup strategists noted in a report Monday. "It is amazing that nothing has been able to disrupt the high-yield market so far," wrote Jason Shoup and Divya Krishnan. "Neither a giant ash cloud sweeping across Europe or alleged fraudulent acts by a major Wall Street bank has troubled unflappable bond prices."
High-yield bonds have rewarded investors with a 49% return in the past 12 months and 6.8% so far this year. Fridson says the market's surprisingly quick rebound since the financial crisis is a testament to the Federal Reserve's efforts to revive credit – keeping benchmark lending rates near zero while mopping up mortgage bonds and other securities considered toxic. "You got two years of returns in one year," he says.
The last time the market traded at par was June 11, 2007. When credit markets collapsed after the fall of Lehman Brothers, the typical high-yield bond bottomed out at 54 cents on the dollar in December 2008.
Bank of America's high-yield index currently pays an 8.1% yield. Over the last 20 years, the yield has dropped below 8% for a total of 28 months, Citigroup's strategists say, and has never sunk below 7%.
|
|
|
|
|
|
| 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 [+] |
|
|
|
|
|
|
|
|
