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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
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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)
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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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QE2 No Smooth Ride For Bondholders |
THE WALL STREET JOURNAL - Nov. 1, 2010 - By RICHARD BARLEY
The first round of quantitative easing proved to be a bonanza for bondholders. The second round, expected to be launched by the U.S. Federal Reserve this week, is unlikely to prove such good news. It may even knock corporate bonds off the perch they've occupied for the 18 months since the Fed first bought Treasurys.
QE1 had an instant impact because credit markets were clearly dysfunctional. U.S. junk bonds were yielding more than 18 percentage points over Treasurys, and investment-grade bonds were yielding six percentage points over Treasurys, according to Bank of America Merrill Lynch data. That gave the Fed a big target to aim at.
But now markets are humming. U.S. companies like Wal-Mart and Microsoft have raised three-year funding at record low costs of under 1%. European junk-bond issuance already has hit a record €37 billion ($51.5 billion) this year with two months still to go, according to Société Générale.
So it's not clear what help more quantitative easing, which largely works by pushing up asset prices, might provide to credit markets. But it's possible to see what harm it might do. Record low yields show the balance of power has clearly shifted from investor to issuer. U.S. non-financial corporations now have $1 trillion in cash, according to Moody's, and may choose to spend it on mergers and acquisitions or share buybacks, both potentially damaging for bondholders. The risk of leveraged buyouts also is increasing, as high-yield funding costs have been reduced by low underlying rates.
For the complete article visit THE WALL STREET JOURNAL
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| Stuff to look at |
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| BondsOnline Advisor |
Income Security Recommendation January 2013 Issue.
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