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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
|
3.00% |
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S&P California Bond Index
|
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
|
848.03 |
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S&P U.S. Preferred Stock Index (CAD)
|
636.26 |
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S&P U.S. Preferred Stock Index (TR)
|
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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High-yield debt an equities alternative
'Junk bond' tag a misnomer |
InvestorDaily - Dec. 6, 2011 - By Wouter Klign
The term junk bond hides the fact high-yield corporate bonds are less risky than equities, a US asset manager says.
Investors should not look at high-yield corporate bonds as fixed income, but as an alternative to equities, according to Artio Global Investors senior portfolio manager Patrick Maldari.
In the current environment of low global economic growth, high-yield bonds had the potential to deliver better returns than equities at lower volatility, Maldari said.
"Most large-caps strategies try to balance income and total return," he said.
"If you looked, for example, at the S&P 500 [index], over very long periods of time, 40 per cent of its total return was derived from dividends or income and we know that dividends or income-orientated strategies have been an emphasis in this low growth environment.
"We think if the emphasis is on income, why not focus on the asset class that will benefit from a slow growth environment?"
He said when the growth environment was slow, to the point where real gross doemstic product growth was below 3 per cent, it would be evident that credit had done well relative to traditional equity or even alternatives.
High-yield bonds had sustained reputation damage, due to the term 'junk bond', but although those bonds were certainly more risky than traditional fixed income, they were less risky than equities, he said.
"High yield is probably one of the most misunderstood asset classes," he said.
"It is senior to equity. The first loss piece when a company goes bankrupt is equity.
"I think the term 'junk bond' has created this aura around the sector that it is some riskier assets, in fact, it is not as risky as equities, and because it has so much income there is the ability to mitigate a lot of the volatility when it comes to interest rate risk or credit risk."
For the complete article.
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Income Security Recommendation January 2013 Issue.
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