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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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Bond Funds Attracting Cash Like Stocks During Dot-Com Boom: Credit Markets |
Bloomberg - Aug. 23, 2010 - By John Glover and John Detrixhe
The amount of money flowing into bond funds is poised to exceed the cash that went into stock funds during the Internet bubble, stoking concern fixed-income markets are headed for a fall.
Investors poured $480.2 billion into mutual funds that focus on debt in the two years ending June, compared with the $496.9 billion received by equity funds from 1999 to 2000, according to data compiled by Bloomberg and the Washington-based Investment Company Institute.
Concern the global economic recovery is faltering, with the U.S. growing at a slower-than-forecast 2.4 percent pace in the second quarter, is prompting investors to pile into fixed-income securities of all types even with some yields at record lows. The new cash has helped fuel a rally and drove yields on investment-grade U.S. corporate debt down to a record 3.79 percent last week, while two-year U.S. Treasury yields fell to an all-time low of less than 0.5 percent.
The money flowing into bonds is “probably not repeatable on a consistent basis,” said Joel Levington, managing director of corporate credit in New York at Brookfield Investment Management Inc., which oversees $24 billion. “Eventually it won’t be sustainable. Whether that means five years from now or five weeks is a little difficult to tell,” he said.
Accelerating Returns
Bank of America Merrill Lynch’s Global Broad Market Index, which tracks more than 19,100 bonds of all types with a market value of $37.6 trillion, has gained 1.31 percent this month, the best since July 2009. The index is on track for an annual return of 10.2 percent, which would be the best since the measure was created in 1997.
The 10 lowest-yielding U.S. corporate bond deals ever were sold in the past 14 months, according to Deutsche Bank AG, with International Business Machines Corp. issuing $1.5 billion of three-year notes on Aug. 2 with a record-low 1 percent coupon.
Elsewhere in credit markets, Norfolk Southern Corp. may sell $100 million of bonds due in 2105 in a reopening of an earlier offering of 100-year debt, according to a person familiar with the transaction.
The bonds may be sold as soon as today, said the person, who declined to be identified because terms aren’t set. The railroad sold $300 million of 6 percent debt due 2105 in March 2005 in the last sale of 100-year bonds, Bloomberg data show.
Swaps Fall
The cost of protecting corporate bonds from default in the U.S. fell, with the Markit CDX North America Investment Grade Index Series 14, which investors use to hedge against losses on corporate debt or to speculate on creditworthiness, declining 0.24 basis point to a mid-price of 108.76 basis points as of 12:09 p.m. in New York, according to Markit Group Ltd. In London, the Markit iTraxx Europe Index of credit-default swaps linked to 125 companies with investment-grade ratings, declined 0.636 to 112.675, Markit prices show.
The indexes typically drop as investor confidence improves and rise as it deteriorates. Credit-default swaps pay the buyer face value if a borrower fails to meet its obligations, less the value of the defaulted debt. A basis point equals $1,000 annually on a contract protecting $10 million of debt.
For the complete article visit Bloomberg.com
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