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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
|
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
|
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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| 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)
|
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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High Corporate Profits May Reduce Risk in High-Yield Bonds |
The New York Times - Oct. 8, 2011 - By ROBERT D. HERSHEY Jr.
AT a time of ridiculously low interest rates, some income-starved investors have been drawn to high-yield bonds, a risky but often misunderstood asset class that can add a bit of stability as well as punch to a portfolio.
High-yield — often called junk — bonds paid about 8.34 percentage points more than United States Treasury issues of comparable maturity, on average, on Sept. 30. Although that is well under the double-digit point premiums that prevailed at market bottoms during the last decade, specialists say that this may still be a profitable time to consider high-yield mutual funds, which are particularly appropriate for tax-sheltered accounts.
“I think the market is attractive,” said William J. Morgan, senior high-yield portfolio manager for J. P. Morgan Asset Management. Junk bonds were trading as if almost 9 percent of issues will default over the coming year, Mr. Morgan observed, even as Moody’s Investors Service projects that only 1 percent to 2 percent will do so.
“I see high-yield as offering pretty decent value here,” agreed Matt Eagan, co-manager of the Loomis Sayles Bond fund, which invests up to 35 percent of assets in lower-rated securities.
Mr. Eagan noted that despite weak economic growth, American companies are enjoying hefty profits, indicating that they cannot only handle interest and principal payments on their bonds but also can take advantage of today’s low interest rates should they need to refinance.
“The default rate is likely to remain low,” he said, and is quite unlikely to rise much above 5 percent even if the economy skids back into recession. Default rates peaked at more than 10 percent after the 2008 meltdown, in the early 2000s and in the early 1990s.
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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