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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
|
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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Corporate debt to benefit from Fed’s ‘Twist’
Demand for yields, cheap borrowing seen aiding corporate debt |
MarketWatch - Sept. 30, 2011 - By Deborah Levine
NEW YORK (MarketWatch) — Corporate bonds could get a boost from the Federal Reserve’s shifting of its Treasury holdings -- an effort dubbed ‘Operation Twist’ -- both from increased demand for higher-yielding assets and by keeping it relatively cheap for companies to borrow money.
Next week the Fed will start selling some of its shorter-rated securities and buying longer-dated ones in an attempt to support economic growth, a move that quickly pushed down yields on longer-dated Treasury bonds, which are the benchmark for a wide range of company loans as well as consumer borrowing costs and mortgage rates.
“The Fed is looking for this to carry through to the broader marketplace, including lower mortgage rates and corporate borrowing rates, hoping these will ultimately have a positive impact on the broader economy,” said Chris Molumphy, chief investment officer of Franklin Templeton’s fixed-income group. “Corporations will benefit from lower borrowing costs. The question is will the benefit be enough to have a meaningful impact.”
The gap between the rate companies pay to borrow and U.S. Treasurys grew in the last couple months to its widest in more than two years, since the heart of the financial crisis. The gap tends to increase when investors become more worried and seek the relative safety of U.S. debt instead of riskier assets.
Corporate bonds yield about 2.54 percentage points, or 254 basis points, more than Treasury debt. That spread has shot up from 1.45 points in April, which was the lowest in two years, as Treasury yields plunged and investors worried more about the global economy as the European sovereign debt crisis intensified.
But because the base on which those corporate spreads are based is so low – yields on many Treasury maturities have hit record lows – selling debt is “still very attractive for investment-grade corporate issuers,” said Anthony Valeri, a fixed-income investment strategist at LPL Financial. Read about Treasury bond rally this quarter.
For the complete article.
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Income Security Recommendation January 2013 Issue.
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