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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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REIT Credit Swaps Rally as Bernanke Fuels Boston Properties, Beazer Bonds |
Bloomberg - Nov. 8, 2010 - By Mary Childs and Tim Catts
Credit-default swaps on real-estate investment trusts and homebuilders tumbled as the Federal Reserve pledged to buy additional Treasuries to keep interest rates low, spurring corporate bond sales that curb borrowing costs.
Contracts on Beazer Homes USA Inc. dropped 39.2 basis points to 566.5, the lowest since May, after the Atlanta-based builder sold bonds, according to data provider CMA. Swaps on Boston Properties Inc., which today issued $850 million of notes, have declined 11.7 basis points this month to 106.4, near the lowest since April, CMA data show.
“It’s a major trend in terms of debt pricing and the liquidity that the government has given us,” said Damon Andres, who helps manage more than $145 billion in assets at Delaware Investments in Philadelphia. Real estate investment trusts, in particular, “continue to amaze at lower and lower refinancing rates, plugging away and getting maturities taken care of and getting really cheap debt.”
Fed Chairman Ben S. Bernanke announced last week plans to buy an additional $600 billion of Treasuries to aid the economy after the central bank had already completed purchases of $1.7 trillion of long-term debt. That’s helped drive borrowing costs for companies to record lows and the perception of corporate creditworthiness to near the highest since April.
Zuckerman, BRE
Real-estate bonds in the U.S. have gained 2.4 percent since Sept. 30, outpacing the broader investment-grade corporate bond market, which has gained 0.5 percent, according to Bank of America Merrill Lynch index data.
Boston Properties, the office REIT led by Mortimer Zuckerman, sold the 4.125 percent debt coming due in May 2021, according to data compiled to Bloomberg.
Swaps on BRE Properties Inc. fell 3.4 basis points to 109, the lowest since October 2007, according to CMA. The swaps have dropped 18.3 basis points since the San Francisco-based REIT sold $250 million of debt in September.
Sales of corporate bonds by REITs globally accelerated to $3.64 billion in October, the busiest month for offerings by the companies since they sold $3.72 billion in September 2009, Bloomberg data show. That compares with $593.1 million of issuance worldwide in May, Bloomberg data show.
“They’re not going to have this cheap of debt forever, but for now they’re getting bailed out of any problems,” said Andres. “It’s not that fundamentals are getting better, it’s that the debt is financing is cheap, it’s liquid, and it’s cheaper than what’s in place.”
Homebuilders
Sales of new homes rose in September for a second month to a pace that signals the industry is struggling to overcome the effects of a jobless rate hovering near 10 percent. Swaps on Miami-based homebuilder Lennar Corp. dropped 4.1 basis points to 395.7, CMA data show. The contracts lost 75.6 basis points last week. KB Home in Los Angeles fell 2.8 basis points after a decline of 81.2 last week.
For the complete article visit Bloomberg.com
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Income Security Recommendation January 2013 Issue.
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