| 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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| More |
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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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Banks Forsaking Lowest Yields on Bonds in September Rush: Credit Markets |
Bloomberg - Sept. 24, 2010 - By Tim Catts
Banks are sitting out the busiest September for corporate bond sales in a sign they may refrain from lending while the Federal Reserve considers how to jolt the economic recovery.
Microsoft Corp., Hewlett-Packard Co. and Ford Motor Co. led $124.3 billion of U.S. issuance this month, on pace to beat the high of $125.1 billion in September 2009, according to data compiled by Bloomberg. Sales by banks and financial companies account for 16 percent of the total, the lowest proportion since April and down from 30 percent a year ago.
While industrial companies take advantage of record-low yields, banks continue to retrench in a sluggish economy that Pacific Investment Management Co. calls “the new normal.” Rather than making loans, lenders are plowing cash into government securities and letting their balance sheets shrink.
“Banks have raised deposits, they’ve got lots of cash and loans have fallen,” said Jeffrey Meli, co-head of U.S. credit strategy at Barclays Capital in New York. “They have less need for the money and are happy to be negative net issuers.”
Banks pared commercial and industrial lending to $1.24 trillion in the week ended Sept. 8, 11.3 percent lower than a year earlier, Fed data show. At the same time, their holdings of government debt rose 14.5 percent to $1.59 trillion.
Floating Rates
Sales of floating-rate notes, preferred by banks, have almost vanished as demand dwindles on speculation the Fed won’t raise borrowing costs anytime soon. Companies sold about $5.6 billion of floaters due in at least 18 months in the U.S. this month, accounting for 6.3 percent of investment-grade issuance, the smallest share since October 2008, Bloomberg data show.
Elsewhere in credit markets, the extra yield investors demand to own company bonds instead of similar-maturity government debt rose 1 basis point to 173 basis points, or 1.73 percentage points, Bank of America Merrill Lynch’s Global Broad Market Corporate Index shows. Yields averaged 3.465 percent, the lowest since Aug. 26.
The cost of insuring the bonds of some of Europe’s most indebted governments rose, while a $1.25 billion term loan for Visant Corp., the marketing and publishing firm owned by KKR & Co., rose as it began trading. JPMorgan Chase & Co. offered the largest sale of debt backed by commercial mortgages this year.
Credit-default swaps tied to Ireland’s government debt rose to 492 basis points, near a record, from 478.5 yesterday, according to data provider CMA. Contracts on Portugal jumped 25 basis points to 430, Greece added 5 basis points to 818 and Spain increased 2 basis points to 230, CMA prices show.
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.
Visant Loan
The six-year Visant loan, which is being used to refinance debt and pay a dividend, sold to investors at 98 cents on the dollar and first changed hands at par, according to people familiar with the transaction, who declined to be identified because the trades are private. It then rose to 100.44 cents.
Credit Suisse Group AG and Goldman Sachs Group Inc. arranged the Armonk, New York-based company’s loan at an interest rate of 525 basis points more than the London interbank offered rate, which has a 1.75 percent floor. Libor is the rate banks say they charge to lend to each other.
JPMorgan is marketing $1.1 billion of bonds backed by commercial mortgages, according to a person familiar with the offering. The securities are tied to 30 loans secured by 47 properties, said the person, who declined to be named because terms aren’t public. The offering marks the seventh sale of newly issued U.S. commercial mortgage-backed bonds this year, according to data compiled by Bloomberg.
Microsoft Bonds
Bonds from Redmond, Washington-based Microsoft Corp. were the most actively traded U.S. corporate securities by dealers yesterday, a day after the world’s largest software maker sold $4.75 billion of debt. The company’s $1 billion of 3 percent, 10-year notes rose to 100.008 cents on the dollar from an issue price of 99.136 cents, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority.
Leveraged loan prices fell yesterday after climbing for 11 straight days, with the Standard & Poor’s/LSTA U.S. Leveraged Loan 100 index declining 0.04 cent to 90.19 cents on the dollar. The index rose from 89.34 cents at the end of August.
For the complete article visit Bloomberg.com
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