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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
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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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Abandoning Ship on Bonds |
BARRON'S - May 11, 2013 - By Michael Aneiro
Investors are ignoring sub-5% yields and buying junk securities just based on spreads.
It's official: Bonds are finished.
The man who declared bonds dead was none other than Pimco bond king Bill Gross. Via Twitter Friday, Gross announced that the 30-year bond bull market had come to an end, specifically on April 29. That was the Monday of a week that began with Treasuries riding a seven-week rally but ended with a strong April jobs report sparking sharp losses in government bonds.
Since that day, the 10-year Treasury yield, which moves opposite to its price, has risen from 1.668% to 1.896% Friday, per Tradeweb data.
But the real day that bonds died, or at least outlived their useful purpose, was more likely last Tuesday, May 7. That's when the yield on the Barclays U.S. High Yield index closed at 4.97%, the first time in market history that the average junk-bond yield has fallen below 5%. A day later, the yield on an equivalent Bank of America Merrill Lynch index followed suit.
When the corner of the fixed-income market known specifically for its high-risk, high-reward trade-off can only offer less than 5% in income, it's surely time to reconsider the role of bonds in any portfolio.
This year began amid widespread expectations of a "great rotation," a theory that bond yields would finally become so unattractive that investors would rotate en masse into stocks. Equities have certainly done well this year, but it hasn't come at the expense of bonds. Most of the money flowing into stocks has come from cash and money-market accounts, not bond funds.
For the complete article.
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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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