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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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A Double Digit Yield From Bank Of America? |
Seeking Alpha - Sept. 8, 2011 - By Randy Durig
Last time, we wrote on How to One Up Warren Buffett’s 6% yield from Bank of America (BAC) by utilizing a two-year Bank of America Kangaroo (Australian) bond yielding over 7%. Now, in an article on how to potentially achieve an even richer yield with Bank of America, it's worth repeating that it doesn’t require billions of investment dollars or a famous name, and in reality may be much easier to attain than the average retail investor realizes. IF only the investor has the desire, the right information, and the right connections. Of course, that’s how a very good investment advisor continues to prove his or her worth.
Bank of America Bonds
As mentioned previously, it is fairly common for large multinational financial institutions, such as Bank of America, to issue debt (bonds) denominated in the local currency of countries where they conduct business. The reason for borrowing large amounts of money is simply to lend it out (typically many times over) at a higher rate, making profit on the difference, or the spread. It is to Bank of America’s advantage to borrow, leverage, and lend in a local currency simply because it removes any “currency exchange risk” from the most basic and fundamental business of borrow, leverage, and lend.
This time, we have identified certain of Bank of America’s debt, denominated in the Brazilian real, which currently has a yield over 10.0% for 38 months. The extremely high yield and short maturity of this Brazil bond, when considered with its solid A rating and good cash position, compares extremely favorably in relationship to other high yield instruments in our Foreign and World Fixed Income holdings. We believe the dollar’s longer term weakening trend against many world currencies remains a major concern for investors seeking protection against its devaluation and a further erosion of its buying power, and we share the concern of our clients in protecting existing wealth by utilizing the higher yields of sound issuers in many the world’s strongest economies.
Corporate Bond linked to the Brazilian Real
Bank of America has issued debt, denominated in the Brazilian real, which currently has a yield of about 10.0% for 38 months. The very high yield and short maturity of this Brazil bond, when considered with its solid “A” rating and positioning as one of the “too big too fail” icons within the US financial system, offers an extremely favorable reward to relatively low risk position. We also view the recent drop in the strength of the Brazilian real relative to the US dollar as a great opportunity for increasing exposure to the Brazilian currency within our basket of foreign fixed income holdings, as we believe the dollar’s longer term weakening trend against many of the world currencies remains a major concern for investors seeking protection against its devaluation and a continued erosion of its buying power. In our ongoing effort to address the concerns of our clients in protecting their existing wealth from the destruction caused by the persistent devaluation of the dollar, we believe this Bank of America Brazil bond represents this week’s best opportunity to add the higher yields of one the world’s best emerging economies to our Foreign and World Fixed Income holdings at a quite favorable exchange rate.
For the complete article.
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| Stuff to look at |
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S&P Commentary and Newsletters: S&P
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| BondsOnline Advisor |
Income Security Recommendation January 2013 Issue.
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