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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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Read and Causer: Why you should be buying bank debt |
Investment Week - Oct. 7, 2011 - By Anna Brunetti
Invesco Perpetual’s co-head of fixed income, Paul Read, has told investors now is the time to be bullish on bank debt in the UK, US and Europe, with valuations at three-year lows despite huge improvements in balance sheets.
Read, who along with colleague Paul Causer runs portfolios including the £5.3bn Corporate Bond fund, £299m Tactical Bond fund, and the £3bn Monthly Income Plus fund, has seen performance plunge across the range in the short term having taken a bet on bank debt.
However, Read said he expects the positions to come good over the next three years, as investors reward banks for the way they have repaired balance sheets.
“We are bullish from a fixed income point of view on a lot of the big northern European banks, the big US banks, and obviously the big UK banks,” he said.
“The sector has improved a lot from where it was in 2008 and 2009. There has been a lot of deleveraging, so the average big European banks have come down from often 30 times leverage to 20 times.”
He said the likelihood of impairments at banks the funds hold – such as Santander, Barclays, Lloyds, Bank of America and Commerzbank – is “very, very low”, adding he sees extreme valuation opportunities in the space.
The duo’s stance has hurt performance so far, with Read revealing the Tactical Bond fund gave back a year’s worth of gains in just three months in Q3.
“Performance has been difficult,” he said.
“We have had allocations to high yield which has been hurt in the third quarter. We have had an allocation to financials which has also been hurt.”
The Tactical fund is down 13.5% in the past three months, compared to the £ Strategic Bond sector average loss of 2.5%. The Monthly Income Plus fund is down 9.7%, while the £ Corporate Bond fund has lost 7.2%, compared to the Corporate Bond sector average loss of just 0.8%.
However, Read said from here there is a “tremendous amount of value” in the fund’s holdings, and he urged investors not to take risk off the table.
Read more: http://www.investmentweek.co.uk/investment-week/news/2115487/read-causer-bullish-bank-debt#ixzz1a6qH81iP
Investment Week - News and analysis for investment advisors and wealth managers. Claim your free subscription today.
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Income Security Recommendation January 2013 Issue.
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