Tag Archives: US treasury

Rieger Report: Municipal bonds in 2017?

A look back may be a telling way to view municipal bonds in 2017. The modest total return of the S&P Municipal Bond Index (0.77%) in 2016 masked an atypical year of volatility for the normally staid market place.  During the year, municipal bonds enjoyed being one of the ‘risk off’ asset classes and as low Read more […]

S&P U.S. High Quality Preferred Stock Index: A Venn of an Index

Similar to the Venn diagram in which the overlapping section of circles is the focus, the S&P U.S. High Quality Preferred Stock Index is designed to measure preferred securities that are constituents of both the fixed-rate and investment-grade preferred stock indices. Exhibit 1: S&P U.S. Preferred Stock Indices Hierarchy The weight of cumulative preferred stocks Read more […]

Bond Returns Barely Positive in February

The last few days of February had many wondering whether corporate bond indices would end up closing positive or negative for the month.  The majority of indices closed up for February, but not by much. Higher-quality corporate bonds, as measured by the S&P 500® Bond Index, posted a 0.83% total return for February and returned Read more […]

Volatility Rides Again

Global equity markets stumbled out of the gate in 2016, and still haven’t found their stride. Markets are experiencing an intense case of risk off sentiment, as investors flee from riskier assets in pursuit of safe havens. The yield of 10 year US Treasury Notes is down to less than 1.8%, while oft-maligned gold is Read more […]

Risk Off, Yields Move Lower

Global yields are lower year-to-date in all developed countries except Hong Kong, as measured by the S&P Global Developed Sovereign Bond Index. Weak economic growth, low inflation, and concern over the situation in the Middle East have led many to invest in safer assets. The U.S. market took note of the slowing growth, both domestically Read more […]

Oil’s Viscosity

Oil’s Viscosity It goes without saying that if your car’s engine (or any other combustible engine) does not have the lubrication effect of oil then the friction of movement will lead to overheating and engine damage. Currently oil is having its own effect on markets as low prices are leading to concerns of lower future Read more […]

U.S. Treasuries: A Higher Chance of Lower Yields

The yield-to-worst of the 10-Year U.S. Treasury has been dancing around 2% and dipped below 2% in intraday trading on Jan. 15, 2016.  The night before, the S&P/BGCantor Current 10 Year U.S. Treasury Bond Index closed at 2.09%.  The average yield of the 10-year for 2015 was 2.13%, while 2016 began at 2.30% for the Read more […]

Embracing Rising Interest Rates

Floating Rate Instruments can make a lot of sense in a rising interest rate environment In my May 19 blog, I mentioned two strategies that investors could consider in a rising interest rate environment. Given the recent direction of short-term interest rates, I believe the information bears repeating with updated numbers. Interest rates have been Read more […]

Rising Rates’ Silver Linings

Bond values will, definitionally, fall when interest rates rise. However, different types of bonds have differing characteristics. The chart below shows the annual performance of the S&P 500 Bond Index and the S&P/BG Cantor 7-10 US Treasury Bond Index. (The S&P/BG Cantor 7-10 US Treasury Bond Index is the treasury index most similar to the Read more […]

Investment-Grade Corporate Bonds, Smooth Sailing

There is an old weather-predicting proverb that goes “red skies at night sailors delight; red skies in the morning sailors take warning.”  Well, there has been a lot of red over the last two mornings, and it has not been in the hot August skies but more so in the global financial markets.  Oil prices, Read more […]