Tag Archives: bonds

U.S. Yield Curve Moved by Europe

The U.S. Treasury yield curve, as represented by the S&P U.S. Treasury Bond Current Indices, ended June 14, 2017, tighter (lower in yield) than the previous day.  The importance of June 14 is that it was the day on which the U.S. Federal Reserve raised the target rate by 25 bps, from 1% to 1.25%.  The following Read more […]

Canadian Update

Canada’s economy has been accelerating due to increased consumer spending and a rebound in business investment.  Consumer spending driven by vehicle purchases and real estate investment has lifted the economy, along with improved business investment.  The economy and its growth trend now appear to be on a more secure path.  As of May 31, 2017, Read more […]

Try a TIPS Mixer in Your Equities Cocktail

As product manager of the S&P STRIDE Indices, I sometimes find myself extolling the virtues of Treasury Inflation-Protected Securities (TIPS), which I believe are an underappreciated asset class.  When inflation is relatively tame, people often ask why they should think about TIPS.  The answer is that TIPS don’t hedge expected inflation—that’s already priced in.  TIPS Read more […]

Year in Review: 2016 Asset Class Performance

The high-yield corporate bond segment, as measured by the S&P U.S. High Yield Corporate Bond Index, was the top-performing asset class for 2016, posting a total return of 17.2%.  Despite a rather tumultuous first quarter, 2016 finished with a clear “risk-on” sentiment as evidenced by the asset classes that topped the list. On Feb. 11, Read more […]

LIBOR at 1% for First Time in 7 Years – A Significant Level for Leveraged Loans

For the first time since May 2009, the three-month LIBOR reached 1% on Dec. 29, 2016.  LIBOR, which stands for London InterBank Offered Rate, is a benchmark interest rate that most of the world’s largest banks charge each other for short-term loans.  The most common rates for which LIBOR is quoted are for overnight, one-month, Read more […]

In the “Year of Surprises,” UK Bond Markets Manage Their Way

UK bond markets managed to perform well, with significant YTD returns during a year filled with public vote surprises, as well as both rate decreases and hikes globally.  The S&P U.K. Investment Grade Corporate Bond Index had a YTD return of 10.75% as of Dec. 21, 2016, while the S&P U.K. Gilt Bond Index gained Read more […]

The Green-Eyed [Bond] Monster

Green bonds are bonds created to fund projects with positive outcomes that are directly related to the environment. They include the following. “Use of proceeds” bonds and revenue bonds, which are designated for green projects. Green project bonds, the proceeds of which are earmarked for specific projects with positive environmental outcomes. Green securitized bonds, which Read more […]

Rieger Report: Retail Bond Transaction Costs Show Improvement

Tracking the mark up on retail size bond transactions can be a tricky effort particularly as mark ups have not be disclosed in the past.  By comparing trades of bonds of similar characteristics we are able to isolate and calculate estimated transaction costs published in our study “Unveiling the Hidden Costs of Retail Buying & Selling”. The Read more […]

Performance Trends in the U.K. Gilt and Corporate Bond Markets

On Aug. 4, 2016, the Bank of England cut its benchmark rate by 25 bps to a low of 0.25%.  This move, coupled with its announcement of a GBP 70 billion expansion of quantitative easing, with GBP 10 billion committed for the purchase of investment-grade corporate bonds, is furthering the positive performance of these asset Read more […]

Indexing Listed Property Stocks in New Zealand

Publicly traded property stocks provide exposure to real estate, an illiquid asset class, without sacrificing the liquidity benefits of listed equities. Also, property stocks typically offer higher yields than the broad equity market, they may serve as an effective inflation hedging tool, and they may help diversify a portfolio due to their generally low correlations Read more […]