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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
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3.13% |
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S&P National 0-5 Year Municipal Bond Index
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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)
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636.26 |
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S&P U.S. Preferred Stock Index (TR)
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1,701.05 |
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S&P U.S. Preferred Stock Index (TR) (CAD)
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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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Gorging on Apples |
Huffington Post - May 2, 2013 - By Michael Farr
The appetite of the fixed income investor is voracious. Apple was the course of the day with the largest issuance of corporate bonds in the history of our republic for $17 billion. The Silicon Valley behemoth served up a smorgasbord of floating and fixed rate debt with maturities ranging from 36 months to 30 years. While Apple is highly rated (AA+ by S&P), the deals' lead managers, Goldman Sachs and Deutsche Bank, found insatiable buyers willing to gobble up the debt at impressively low yields of 0.51 percent for the three year maturities and 3.883 percent for obligations due in 2043.
The Treasury bond market currently implies 2.33 percent inflation over the next ten years. Apple borrowed for ten years at 2.41 percent. This suggests that investors in Apple bonds are accepting a real return of 0.08 percent per year. And the owner of the Apple note will pay taxes on their receipts, unless the paper is held in a tax exempt account (such as an IRA).
Last week the country of Rwanda sold ten year "junk" bonds at a yield of 6.875 percent. The metric for judging just how attractive a bond looks can now be gauged by comparing the book ends of Apple on the quality side and, "Whoa, why would they have to pay more than Rwanda?" on the other. The tendency for individual investors to stretch for yield (by extending the term or reducing credit quality) can be exceedingly dangerous, and we advise resisting these temptations.
For the complete article.
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| Partner Market Place |
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| Stuff to look at |
Yield and Income Newsletter: A must have for income investors. subscribe NOW
S&P Commentary and Newsletters: S&P
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| BondsOnline Advisor |
Income Security Recommendation January 2013 Issue.
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