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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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Searching The Globe For Higher AAA Rated Yields |
Seeking Alpha - Sept. 21, 2011 - By Randy Durig
One of the greatest difficulties most fixed income investors face is how to provide enough income to meet their lifestyle needs without also taking on the higher risk typically associated with higher yielding investments. Putting money to work where the risk of loss is lowest typically means receiving the least amount of payback for its use. With ten year US Treasuries yielding only slightly better that half the most recent 3.8% (CPI) inflation rate, they appear to be a very “safe” way to only lose about 2% per year (without calculating any state or local taxes.) If the loss of principle is the foremost concern, then inflation and the loss of buying power (implying a devaluation of the dollar) must be close runner ups. However, in our research of corporate debt instruments utilized around the globe, we have found a remarkable number of short term, AAA rated, corporate bonds denominated in foreign currencies, such as the Rabobank South African rand bond presented here, that have extremely attractive yields when compared to similar US dollar denominated corporate debt.
Corporate Bond linked to the South African Rand
Netherlands based Rabobank has bonds, denominated in the South African rand, that currently has a yield of over 6% for 30 months. The high yield and short maturity of this rand bond, when considered with its extremely strong AAA rating, compares very favorably in relationship to other high yield instruments in our Foreign and World Fixed Income holdings, and we consider the recent weakness of the rand an excellent opportunity for increasing an exposure to the rand in our basket of foreign fixed income holdings. While the dollar appears to be greatly benefiting from the ongoing European banking crisis and removal of the Swiss franc as a “safe haven” currency, we believe the dollar’s longer term weakening trend against many other world currencies remains a major concern for investors seeking protection against further erosion of the its buying power, and we view the recent strengthening of the dollar as a great opportunity to diversify into economies that continue to show good growth potential in spite of the recent financial turmoil.
Wealth Preservation Concerns
Wealth preservation, or protection from wealth destruction, appears to still be the name of the game in the West as long as yields of the safest investments, US Treasuries, remain submerged well below inflation rates. Several financial pundits have speculated that the reason gold is being bid up has less to do with a love for the metal that it does the world’s growing distrust of the financial system and the incubating possibility of extreme inflation of the US dollar and other major currencies. Whether the Fed’s manipulation of interest rates to zero combined with the continued printing of fiat money, or whether the European Central Bank’s apparent inability to resolve its problems is more responsible for the growing mistrust might be as easily resolved with a coin flip than with significantly more pragmatic (and strenuous) reasoning. While gold (or other precious metals) do offer a certain storage of value, it’s also a reflection of money that has been intentionally “sidelined” to await a better opportunity of use. If or when solely relied upon to meet everyday living expenses, it eventually becomes depleted (by you or your heirs.)
For the complete article.
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| Stuff to look at |
Yield and Income Newsletter: A must have for income investors. subscribe NOW
S&P Commentary and Newsletters: S&P
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| BondsOnline Advisor |
Income Security Recommendation January 2013 Issue.
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