Tag Archives: High Yied

The Long End of the Curve Pays Off in November

Long duration was the trade to have for the month of November. The yield-to-worst of the S&P/BGCantor Current 30-Year U.S. Treasury Index closed the month at 2.90%, 17 bps tighter than at the beginning of the month, which was 3.06%.  The 10-year yield-to-worst, as measured by the S&P/BGCantor Current 10 Year U.S. Treasury Index tightened Read more […]

Investment Grade U.S Preferreds, 16%!

U.S. Preferred securities continue to provide healthy returns for investors.  The S&P U.S. Preferred Stock Index has returned 0.79% for the month and currently returned 13.81% total return year-to-date. The ratings break-out between constituents of the preferred index has the S&P U.S. Investment Grade Preferred Stock Index even with its high yield counterparts at 0.83% Read more […]

If You’re Not in the Loans Then You’re Not Getting the Bonds

There is an axiom among the capital markets desks of investment banks that goes something like this: “if you’re not in the loans then you’re not getting the bonds”. The reasoning behind this statement is this: Other than fallen angels, the issuers of high yield debt are companies whose access to capital can be limited.  Read more […]

Tobacco Settlement Bonds: the next cloud on the horizon for municipal bonds?

As the young gas station attendant says at the end of the movie Terminator “there is a storm coming”.  While Detroit and Puerto Rico’s financial struggles continue to rattle the municipal bond market, the over $87billion state issued tobacco settlement bond market is another potential dark cloud worthy of watching. A recent article in the Read more […]

Treasury Curve Flattening Helps Long Duration; Investment Grade Bonds Continue to Perform

Last week’s performance saw the overall Treasury market as measured by the S&P/BGCantor US Treasury Bond Index return 0.03% and is now at 2.08% for the year.  Yields moved lower as the yield-to-worst of the S&P/BGCantor Current 10 Year U.S. Treasury Bond Index is now at a 2.49% which brings it back down to level Read more […]

Unemployment Puts The Question of A Rate Increase In Play

After starting last week at a yield of 2.52%, the yield of the S&P/BGCantor Current 10 Year U.S. Treasury Bond Index climbed to a high of 2.72% to close the index before the July 4th holiday.  The 6.1% unemployment number moved yields higher as the markets were expecting an unchanged result from the prior level Read more […]

High Yield Bonds: Can more juice get squeezed out of the junk bond sector?

Lipper reports high yield bond funds have seen the first cash outflow in 7 weeks which might be a sign that junk bonds could run out of gas. Over the last five years the S&P U.S. Issued High Yield Corporate Bond Index has seen annualized returns of over 13.6%. Year to date the index has Read more […]

Municipal bond market – Readily absorbs a bump up in new issue supply

The S&P Municipal Bond Index has returned 5.74% year to date as yields have remained relatively stable as the market absorbs new issue supply. High yield municipal bonds tracked in the S&P Municipal Bond High Yield Index have continued to outperform their corporate junk bond counterparts by returning 9.67% year to date. As the yields Read more […]

Bonds Will Need to Tread Lightly With Domestic And Global Issues

Last week saw the yield of the S&P/BGCantor Current 10 Year U.S. Treasury Bond Index close 1 basis point tighter than the 2.61% that started its week.  Thursday was the only day in which the yield moved significantly as yields tightened by 5 basis points in reaction to the weaker than expected Retail Sales release.  Read more […]

Municipal Bonds: Hooked on Tobacco

The S&P Municipal Bond Tobacco Index has returned 12.79% year to date as the tobacco settlement bond market has recovered from a dismal 2013 return of -8.77%. Yields of these bonds have fallen 99bps during the year to an average of 5.92%. These long duration higher yielding bonds represent just under 15% of the total Read more […]