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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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| 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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Dealers Cut Bonds as Conviction in Rally Wanes: Credit Markets |
July 15 (Bloomberg) -- Wall Street’s biggest bond dealers have been cutting their holdings of corporate debt to the lowest since September, signalling limited conviction behind the credit market rally that began last month.
The 18 primary U.S. government debt dealers that trade directly with the Federal Reserve held $80.6 billion of corporate bonds with maturities greater than one year as of June 30, down 20 percent from this year’s high of $101.6 billion on Jan. 20, according to central bank data. The Fed will release primary dealer positions as of July 6 today.
The 66 percent decline in dealer holdings from a peak of $235 billion in October 2007 shows risk appetite never recovered from the credit crisis amid proposals for tighter regulation, increased capital requirements and concern the global economy may slow. The reduced holdings may expose investors to wider price swings if sentiment turns negative, according to State Street Corp.’s William Cunningham in Boston.
“Liquidity is very scarce when you need it,” said Cunningham, head of credit strategies and fixed-income research at the investment unit of State Street, which oversees almost $2 trillion. “While the markets are operating, the depth of bids and the depth of liquidity is so shallow that you cannot rely on this if conditions get worse.”
The extra yield investors demand to own corporate bonds instead of Treasuries fell 1 basis point to 188 basis points, or 1.88 percentage points, according to Bank of America Merrill Lynch’s Global Broad Market Corporate Index. The index has declined for five straight days, the longest stretch since March 11. It’s fallen from 201 basis points on June 11. Yields declined to 3.929 percent.
Credit-Default Swaps
Elsewhere in credit markets, the cost of protecting corporate debt from default rose in the U.S. following the Federal Reserve’s assessment that the economic outlook has “softened.” Relative yields on emerging market bonds widened after tightening for six straight days.
The cost of insuring against losses on European investment- grade corporate bonds using credit-default swaps fell to the lowest in more than two months after Spain’s successful 3 billion-euro ($3.8 billion) sale of 15-year debt.
Contracts on the Markit iTraxx Europe Index of 125 companies dropped 0.7 basis point to 113.1 as of 12:09 p.m. in London, the lowest since June 21, according to Markit Group Ltd. Credit-default swaps on Spanish government debt declined 4 basis points to 216, CMA prices show.
For the complete article visit Bloomberg
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| Stuff to look at |
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| BondsOnline Advisor |
Income Security Recommendation January 2013 Issue.
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