|
|
|
|
| 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. |
|
|
| Bonds Online |
|
|
| 5/10/2013Market Performance |
| Municipal Bonds |
|---|
|
S&P National Bond Index
|
3.00% |
|
|
S&P California Bond Index
|
2.96% |
|
|
S&P New York Bond Index
|
3.13% |
|
|
S&P National 0-5 Year Municipal Bond Index
|
0.70% |
|
|
| S&P/BGCantor US Treasury Bond |
400.09 |
|
| More |
|
| Income Equities: |
|---|
| Preferred Stocks |
|---|
|
S&P U.S. Preferred Stock Index
|
848.03 |
|
|
S&P U.S. Preferred Stock Index (CAD)
|
636.26 |
|
|
S&P U.S. Preferred Stock Index (TR)
|
1,701.05 |
|
|
S&P U.S. Preferred Stock Index (TR) (CAD)
|
1,276.26 |
|
|
| REITs |
|---|
|
S&P REIT Index
|
174.07 |
|
|
S&P REIT Index (TR)
|
425.30 |
|
|
| MLPs |
|---|
|
S&P MLP Index
|
2,469.58 |
|
|
S&P MLP Index (TR)
|
5,428.50 |
|
|
See Data
|
|
|
|
 |
|
|
|
|
|
|
Finding Treasure in Junk Bond ETFs |
ETF TRENDS - Dec. 8, 2010 - by Tom Lydon
After the junk bond exchange traded fund (ETF) market dipped briefly over the last month, it’s now come roaring back.
There’s more than just one thing goading this rally:
Falling Defaults. Moody’s stated that global junk-grade default rates hit a two-year low of 3.3% in November, and the rate may fall to 2.9% by year-end and 1.8% by November 2011 as corporate earnings surge and the economic recovery continues apace, reports Bryan Keogh for Bloomberg. [Risk Easing in Corporate Bond ETFs.]
Greater Confidence. Gwen Robinson for The Financial Times says another reason the junk bond market is reviving as a result of increased confidence that Europe’s debt problems won’t affect the global economy, growing retail sales and an improved rate of home purchases.
The Hunt for Yield. Long-term Treasuries only recently moved above 3%, while short-term debt is still below a paltry 1%. Junk bonds are one area investors can reliably go these days for the yields they’re looking for.
It’s a nice turnaround from last month, when investors pulled $296.3 million from junk bond ETFs.
In November, companies issued a record amount of junk-rated bonds, with U.S. high-yield issuance totaling $30.65 billion, compared to $18 billion in the same month last year, as issuers were lured by low interest rates, writes Michael Aneiro for The Wall Street Journal. Currently, $261 billion in new high-yield bonds have been issued this year, up from $145.8 in the same period last year. [Junk Bond ETFs: Are They for You?]
High-yield, high-risk or junk debt is rated below Baa3 by Moody’s ratings firm and BBB- by the S&P.
If you’re looking for yield and you’ve got confidence in what’s happening in the markets here and overseas, take a look at junk bond ETFs for diversified exposure to this market. Be aware that while defaults are falling and junk ETFs mitigate some of the risks of this asset class, it’s still junk debt. A strategy will help protect you – we use a simple trend following one for our clients, which you can read more about here.
For more information on junk bonds, visit our junk bonds category.
iShares iBoxx $ High Yield Corporate Bond (NYSEArca: HYG): yields 7.97%
SPDR Barclays Capital High-Yield Bond (NYSEArca: JNK): yields 8.44%
PowerShares Fundamental High Yield Corporate Bond (NYSEArca: PHB): yields 6.77%
For full disclosure, Tom Lydon’s clients own JNK.
Max Chen contributed to this article.
|
|
|
|
|
|
| Partner Market Place |
|
|
|
| Stuff to look at |
Yield and Income Newsletter: A must have for income investors. subscribe NOW
S&P Commentary and Newsletters: S&P
|
|
| BondsOnline Advisor |
Income Security Recommendation January 2013 Issue.
Keep up with monthly, in-depth coverage of fixed income market strategies, commentary, and insights as seen by our sources. Sign up for the free BondsOnline Advisor now!
Unsubscribe here [+] |
|
|
|
|
|
|
|
|
