| 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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| 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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NYSE Bonds Lists a Few Older Munis Alongside Corporates |
The Bond Buyer - 06/01/07
by Dakin Campbell
In what could come as a surprise to participants in the municipal bond market, the New York Stock Exchange’s new automated bond system currently offers a number of municipal bonds for online trading.
“They have munis listed?” said Rob Slaymaker, chief executive officer of rival fixed-income trading platform BondDesk Group LLC. “That’s news to me.”
In late April, the New York Stock Exchange debuted its new online fixed-income trading system, called NYSE Bonds. As the news spread, NYSE spokespeople said the new system would list corporate bonds exclusively, but research by The Bond Buyer has found a number of municipal bonds listed.
“Those are legacy bonds that have been on the system for years and years and years, and we didn’t want to de-list them,” said John Holman, vice president for fixed income at the NYSE Group. “It’s been 15 years since they’ve traded they came on the system in the late 80s and early 90s so we just migrated them over.”
The bonds were originally listed on the NYSE’s Automated Bond System, which began in 1977. The listed munis include a number of general obligation and revenue bonds. The California GOs that are listed mature in the mid to long term, 7- to 25-year maturities, while the New York City bonds mature in 2009 and 2014. The California revenue bonds feature a wide range of maturities. And though NYSE is not trumpeting the municipals, preferring to bring attention to corporate debt issued by companies listed on the exchange, the munis are in play.
“They can be traded, we just don’t have an audience that’s interested in those right now,” Holman said.
To trade on the new system, market participants must be a member of the NYSE, or be sponsored by a member.
The addition of more municipals to the system may come as early as next year. Holman said he hopes to start adding more debt securities starting with convertibles, agencies, and Treasuries, and then moving into municipals by the first quarter of 2008.
“Once we get a [large amount of corporate bonds] onto the system we’ll start looking for our customers to say where they want to go next,” Holman said. “But munis haven’t been a hot topic, yet.”
If municipals are eventually listed in large numbers, Holman said choosing specific bonds or issuers will be a challenging process. The market features such heterogeneity that it would be impossible to list all of the outstanding bonds, and NYSE officials would have to decide how to select the bonds.
“The one thing with the munis we have to look at is, how do we draw up a business plan?” Holman said. “Do we just adopt the major regionals, like Dallas, Chicago, or New York?”
The system currently executes about 20 trades a day, all in corporates, Holman said. In other words, it will be some time before NYSE Bonds is a significant player in the electronic trading of municipal bonds.
In comparison, BondDesk’s Slaymaker says his system executes about 6,000 municipal bond trades each day and that until NYSE Bonds shows numbers like that, he’s “not worried at all.”
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Income Security Recommendation January 2013 Issue.
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