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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
|
2.96% |
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S&P New York Bond Index
|
3.13% |
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S&P National 0-5 Year Municipal Bond Index
|
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
|
848.03 |
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S&P U.S. Preferred Stock Index (CAD)
|
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)
|
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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Higher Yielding Bond ETFs: A 'Sweet Spot' on the Risk Spectrum |
Seeking Alpha - Aug. 13, 2010 - by Gary Gordon
Cash yields 0% and 10-year treasuries yield 2.75%. The paltry returns make it likely that the money will flow somewhere else before too long.
Yet economic uncertainty has been scaring investors away from stock assets. Heck, if the cash-hoarding corporation won’t buy back more of its own shares because of a perceived need to self-finance in dangerous credit waters, why would others purchase the shares?
Again, though, investor dollars always look for a better home. And the preferred home these days is higher-yielding debt investments.
With Standard & Poor’s estimating that less than 3 percent of high-risk firms will default in June 2011, why wouldn’t an investor be interested in diversified ETFs like SPDR Capital High Yield Bond (JNK) or iShares High Yield Corporate Bond (HYG)? The 8%+ annual income that’s delivered monthly is 600 basis points better than treasury bond funds with comparable average maturities.
Granted, if the economic conditions improve significantly, and treasury bond yields rise, one may see the spread between treasuries and high yields narrow further. Or, if a double-dip recession were to hit, spreads could widen and high yield investing may go on temporary hiatus.
However, that’s where you come back to the likelihood that the actual percentage of defaulting corporations will be rather tame. At its worst point on a rolling 12-month basis, we witnessed 12/100 companies default, and the forecast is now 3/100. It follows that high yield corporate bond ETFs should remain attractive until there’s a healthy, self-sustaining economic recovery that compresses spreads to a mere 200-250 basis points.
For the complete article visit Seeking Alpha.
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| Stuff to look at |
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| BondsOnline Advisor |
Income Security Recommendation January 2013 Issue.
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