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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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Taxable Bonds Trail Companies on Risk: Muni Credit |
Bloomberg Businessweek - Oct. 31, 2011 - By Michelle Kaske and Simone Baribeau
(Corrects amount of BABs outstanding in 11th paragraph of article published Oct. 28.)
Oct. 28 (Bloomberg) -- Taxable municipal bonds, whose return is double that of tax-exempts this year, are set for their worst month of 2011 and are losing ground to company debt as investors reacquire a taste for risk.
Taxable munis lost 3.2 percent this month, their only negative return of 2011 after a 1.2 percent retreat in June, according to Bank of America Merrill Lynch indexes that track price changes and interest payments. Company debt earned 0.44 percent in October, the most since 2.3 percent in July.
Investors seeking higher yields propelled company debt after concerns eased about European bond defaults, said Mikhail Foux, a credit strategist at Citigroup Inc. National leaders agreed on a plan to ease Greece’s debt burden yesterday, pushing up stocks worldwide and putting the Standard & Poor’s 500 Index on course for its biggest monthly rally since October 1974.
“Taxable munis are sort of like an orphan asset class and they tend to lag the move in the corporate space,” Foux said in a telephone interview from New York. “In this rally, I would expect them to lag initially until they catch up to the corporate market down the line.”
Taxable munis returned 15.8 percent in 2011 compared with 6.1 percent for corporates and 8.1 percent for all municipal debt, according to the Bank of America Merrill Lynch Indexes.
This week, yields on top-rated corporates fell 4 basis points to 3.95 percent Oct. 26, according to the Moody’s Corporate Bond Index. They rose as high as 4.13 percent Oct. 12.
Diverging Yields
Top-rated 10-year taxable muni yields rose 1 basis point this week through yesterday to 3.56 percent, according to a Bloomberg Fair Value index. They were as low as 3.47 percent on Oct. 6. A basis point is 0.01 percentage point.
Yields on top-rated 10-year tax-exempts closed at 2.39 percent yesterday, down from 2.58 percent on Oct. 13, the highest since Aug. 2. Yields on 10-year U.S. Treasuries climbed as high as 2.41 percent, the most since Aug. 9.
The ratio of 10-year AAA municipal debt yields to rates on similar-maturity Treasuries fell to 100.5 percent yesterday, the lowest since Sept. 15, according to data compiled by Bloomberg.
For the complete article.
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