| 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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Pimco Favors Bank Bonds, Loans as Obama Moves to `Center': Credit Markets |
Bloomberg - Dec. 17, 2010 - By John Detrixhe
Pacific Investment Management Co., manager of the world’s biggest bond fund, is betting U.S. bank debt will rally in 2011 as the economy accelerates.
Bank of America Corp. and Citigroup Inc. are poised to be “two of the stars” in fixed-income markets next year, said Mark Kiesel, the global head of corporate bond portfolio management at Pimco in Newport Beach, California. The largest U.S. lenders are an attractive value compared with “every bank you can buy in the world,” he said.
Pimco, which boosted its forecast for economic growth last week, is backing bank bonds after the securities returned 7.62 percent this year, compared with the gain of 7.95 percent for investment-grade company debt, Bank of America Merrill Lynch index data show. U.S. corporate borrowers will benefit as the economy revives following President Barack Obama’s agreement to extend tax cuts, Kiesel said.
“That was the catalyst that sparked upward revision in growth,” said Kiesel, who was nominated for fixed-income manager of the year by Morningstar Inc. “That Obama is showing some indication he’s willing to move more toward the center, that’s net-net going to be marginally more positive for business.”
Bank of America sold $1.5 billion of bonds yesterday in its first offering of fixed-rate debt in four months, according to data compiled by Bloomberg. The largest U.S. lender by assets has been facing demands by investors to buy back billions of dollars in soured mortgages.
Basel III
Charlotte, North Carolina-based Bank of America’s Tier 1 capital ratio, the most important regulatory measure of a bank’s financial health, rose to 8.45 percent last quarter. The Group of 20 nations last month endorsed rules, known as Basel III, setting the minimum at 7 percent.
“It’s the balance sheet improvement which is the story,” Kiesel said in a telephone interview.
Elsewhere in credit markets, the extra yield investors demand to own company bonds instead of similar maturity government debt was unchanged at 171 basis points, or 1.71 percentage points, down from this year’s high of 201 basis points in June, Bank of America Merrill Lynch’s Global Broad Market Corporate Index shows. Yields averaged 4.034 percent.
The Barclays Capital Global Aggregate Index of bonds has lost 1.02 percent this month, trimming this year’s gain to 3.13 percent.
Goldman Sachs Group Inc. and Citigroup sold $876.45 million of bonds linked to U.S. commercial real estate.
Goldman, Citigroup
A top-rated $376 million slice maturing in 9.84 years priced to yield 140 basis points more than the benchmark swap rate, according to a person familiar with the transaction. The securities were initially marketed to yield between 130 and 135 basis points over swaps, said the person, who declined to be identified because terms aren’t public. The deal was tied mostly to payments on shopping centers and office-building loans.
Michael DuVally, a spokesman at Goldman Sachs, and Danielle Romero-Apsilos, a spokeswoman for Citigroup, declined to comment.
For the complete article.
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