|
|
|
|
| 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. |
|
|
| Bonds Online |
|
|
| 5/10/2013Market Performance |
| Municipal Bonds |
|---|
|
S&P National Bond Index
|
3.00% |
|
|
S&P California Bond Index
|
2.96% |
|
|
S&P New York Bond Index
|
3.13% |
|
|
S&P National 0-5 Year Municipal Bond Index
|
0.70% |
|
|
| S&P/BGCantor US Treasury Bond |
400.09 |
|
| More |
|
| Income Equities: |
|---|
| Preferred Stocks |
|---|
|
S&P U.S. Preferred Stock Index
|
848.03 |
|
|
S&P U.S. Preferred Stock Index (CAD)
|
636.26 |
|
|
S&P U.S. Preferred Stock Index (TR)
|
1,701.05 |
|
|
S&P U.S. Preferred Stock Index (TR) (CAD)
|
1,276.26 |
|
|
| REITs |
|---|
|
S&P REIT Index
|
174.07 |
|
|
S&P REIT Index (TR)
|
425.30 |
|
|
| MLPs |
|---|
|
S&P MLP Index
|
2,469.58 |
|
|
S&P MLP Index (TR)
|
5,428.50 |
|
|
See Data
|
|
|
|
 |
|
|
|
|
|
|
Why Corporate Bonds Do Not Lead Stocks |
Minyanville - Oct. 10, 2011 - By Howard Simons
Stocks do not lead bonds and bonds do not lead stocks on any regular basis. Here's why.
As more than one person has discovered, often to their regret, the question, “Who are you going to believe, me or your lying eyes?” has different answers before and after closing time. But any data analyst worthy of the name should be able to tell you lying eyes have no place in our hard-bitten world: While charts and graphs are indispensable for taking a first pass at investment relationships, you have to run the numbers – crunch them, as the saying goes – as your eyes are programmed to lie to you.
That last statement is correct. Your brain is hard-wired to patterns even when they do not exist. Toss out a set of random numbers or random events and someone will come up with a perfectly logical explanation for them. Worse, they will change their explanation at the drop of a hat; think of how many times someone will have 10 reasons for why the market opened as it did, got an intraday pie in the face for each, and then told you another ten reasons why the market was bound to have closed as it did.
Corporate Bonds and Stocks
Bond traders, especially for investment-grade issues, focus on spreads more than on prices are therefore view the market through the lens of option-adjusted spreads (or OAS) as opposed to the intermarket arbitrage that may exist between stocks and bonds. They combine this worldview with a few major life-changing events in the markets, such as the 2007-2008 crash and subsequent 2009 in both corporate bonds and stocks, note how OAS levels seemed to move in advance of stock prices and then conclude, as bond traders often do, they are much smarter than their stock-trading brethren, a group they regard as barely separate from the beasts in the field.
Ah, but the comparisons are off-base. Not only is the fundamental arbitrage relationship between stocks and corporate bonds the expected price/earnings ratio adjusted for dividend yield in the former and yield to maturity in the latter, we have to account for the increasing dollar value of each basis point lower in bond yields. Thus a proper measure is total return to total return.
For the complete article.
|
|
|
|
|
|
| Partner Market Place |
|
|
|
| Stuff to look at |
Yield and Income Newsletter: A must have for income investors. subscribe NOW
S&P Commentary and Newsletters: S&P
|
|
| BondsOnline Advisor |
Income Security Recommendation January 2013 Issue.
Keep up with monthly, in-depth coverage of fixed income market strategies, commentary, and insights as seen by our sources. Sign up for the free BondsOnline Advisor now!
Unsubscribe here [+] |
|
|
|
|
|
|
|
|
