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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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Good Times for Corporate Bond ETFs |
NASDAQ - Oct. 30, 2010 - by Jonathan Bernstein
It is the best of times for corporate bond issuers. It's a pretty good time for corporate bond ETF investors too. But investors should avoid the temptation to buy investment grade corporate bonds and corporate bond ETFs now. The yields are too low and the risks are too high.
Investment grade corporate bond ETFs, like the bonds they hold, are currently trading on interest rates. Interest rates are low and the expectation is that they will stay low.
Corporations are taking the situation as an opportunity to issue a lot of debt. Companies like Microsoft that have traditionally eschewed debt are getting in on the act. The yields on this new debt are very low. The most recent is Wal-Mart's three-year and five-year debt offering at rates of 0.75% and 1.5% respectively. Less worthy companies like Pepsico and even eBay are forced to pay more. But not much more. Ebay is offering just 0.875 percent on its 3-year notes. This is better than the plain vanilla money market account and U.S. treasury bonds, but not by much.
At these levels, corporate bonds are pricing in very little risk from all this new supply. They are pricing in little default risk, little liquidity risk, and in fact very little interest rate risk. The 5-year chart below shows the historical returns of corporate bond ETFs and treasury bond ETFs. It compares the return of the high grade corporate bond LQD with a benchmark treasury bond ETF, the iShares Barclay 7-10 Year Treasury Bond fund (NYSEArca:IEF).
Read more: http://community.nasdaq.com/News/2010-10/good-times-for-corporate-bond-etfs.aspx?storyid=42803#ixzz13zz8s1zh
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| Stuff to look at |
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Income Security Recommendation January 2013 Issue.
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