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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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| 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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Muni Bond Declines Jar ETFs |
THE WALL STREET JOURNAL - Nov. 18, 2010 - By IAN SALISBURY
NEW YORK—The recent trading turmoil in municipal bonds has led to a scramble among investors to unload municipal-bond exchange-traded funds, amplifying worries about the state of the market.
Over the past several days, concerns over new municipal-bond sales and issues like the fate of the expiring Build America Bond program have prompted a frenzy of selling, driving down prices and boosting yields. The concerns of bearish investors have reverberated in trading of investments like ETFs, which to a large extent have seen even greater price declines than the individual municipal bonds the funds are meant to represent.
ETFs are baskets of stocks, bonds, commodities or other financial instruments that change hands on the stock exchange. Municipal-bond ETFs, which first appeared about four years ago, are often used by mom-and-pop investors with accounts too small to make trading individual bonds cost-effective.
Holding about $8 billion today, muni ETFs are a tiny sliver of the $2.8 trillion municipal-bond market. However, because ETFs are rapidly traded, some investors look to ETF market prices for insight into what other investors are thinking, in much the way trading activity in Standard & Poor's 500 stock futures can give a read on the stock market.
Declines in some municipal-bond ETFs may be spooking small investors. For instance, the $2.1 billion iShares S&P National AMT-Free Muni Bond ETF, the largest fund of its kind, saw its share price knocked to $100.40 on Tuesday from more than $105 last week.
"I would expect a maximum decline of 5% in a year, so to see it all in a matter of days would be a concern," said Reston, Va., financial adviser Mark Atherton, whose clients have used the ETF in the past and own similar municipal-bond-index funds now. "It looks like the last three or four trading days have not been kind at all."
Complicating the matter is the fact that the most popular municipal-bond ETFs have seen prices fall more sharply than the value of the funds' own holdings. The $2.1 billion iShares ETF and the $931 million SPDR Nuveen Barclays Capital Municipal Bond ETF each closed about 2% below the value of the bonds they own on Tuesday and more than 2.4% below on Monday, according to fund researcher Morningstar Inc.
In normal circumstances ETFs are supposed to track the value of their holdings almost to the penny. However, amid big market moves that doesn't always happen. During the financial crisis many bond ETFs regularly missed their marks, some days by 5% or more.
For the complete article visit THE WALL STREET JOURNAL
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Income Security Recommendation January 2013 Issue.
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