|
|
|
|
| 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
|
|
|
|
 |
|
|
|
|
|
|
Long-Term Bond Bubble Bursting? What Will Retail Investors Do? |
Seeking Alpha - Dec. 10, 2010 - by Lawrence Weinman
I have been writing for quite some time now that in the bond market it has been the dumb money buying long term treasury and corporate bonds and "smart money" corporations grabbing the cheap money by issuing record amounts of corporate bonds. The low long term rates were unsustainable. Wednesday's bond selloff attributed by some to the higher growth and larger deficits that may come out of the tax proposals, shows how violent the moves can be in long term bonds.
Retail investors have been flocking into bond funds for the last year or more. Supposedly this was in search of "safe investments" compared to the volatile stock market where they had suffered losses. In fact I would argue they weren't looking for safety but rather chasing returns of the most recently outperforming asset class.
These investors were simply riding the last wave of a massive decline in interest rates/rally in bonds. The positions were hardly "safe investments" particularly if they extended maturities in their bonds to avoid the paltry yields in the short maturities. As rates went down the longer duration bonds gained disproportionately compared to other bonds. I assume for some investors this was evidence their bond investments were "safer" than stocks.
But as these investors are probably just starting to realize, what goes up the most can go down the most. Those long duration bond holdings will suffer greatly should rates rise. Just the relatively modest increase in long term rates of late has been quite damaging to holders of long term bonds. Over the last 3 months TLT the 20 year+ treasury bond ETF has declined 8.3% while the short term treasury bond ETF SHY is unchanged. Surely all bonds are not equally "safe" investments.
For the complete 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 [+] |
|
|
|
|
|
|
|
|
