Tyler Cling
Senior Manager, Fixed Income Indices, S&P Dow Jones Indices
Credit Default Spreads…Moving On Up
The S&P/ISDA U.S. 150 Credit Spread Index has seen spreads widen by 56.52% since July 2014. This means investors are demanding over 50% more on the notional cost of default insurance on the largest investment-grade corporate bonds tracked by the S&P 500®. CDS “insurers” from the S&P/ISDA CDS U.S. High Yield OTR Index saw spreads…
Show Me The Muni: Q2 2015
The S&P Municipal Bond North Dakota Index (0.47% QTD) was the only U.S. state or territory index to finish the second quarter in the black. The bonds tracked by the S&P Municipal Bond Puerto Rico Index (-8.22% QTD) have been in the focus of the mainstream media this week following public statements from their governor…
- Categories Fixed Income
- Tags munis, show me the muni
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- munis, show me the muni
Show Me The Muni
The S&P Municipal Bond Puerto Rico Index was the only state or territory index to finish the quarter in the red, down 1.25% with its yield to worst at 7.89%. Yields continue to rise as investors become more skeptical about Puerto Rico’s ability to fulfill obligations to their creditors. The S&P Municipal Bond Puerto Rico…
Leverage Loan Redemptions = Record Trading Volume + Market Depth?
With the majority of the fixed income world taking sides on prize fights like Greece, the European Central Bank (ECB), inflation, and energy-related debt, you may have missed the beating leveraged loans have been receiving in the media. The Financial Industry Regulatory Authority (FINRA) cited senior loan liquidity concerns in their January letter, stating “…these…
Energy Related Municipal Bonds Help Push the S&P Municipal Bond Default Rate to a 3-Year High in 2014: 0.17%
In 2014, the default rate of the S&P Municipal Bond Index rose for the first time since 2011, finishing the year at 0.17%. In 2013, the overall default rate fell to 0.107% from 0.144% in 2012. The corporate bond sector of the municipal bond market has historically been one of the sectors where bonds have…
- Categories Fixed Income
- Tags municipal bonds, munis
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- Fixed Income
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- municipal bonds, munis
Are Green Bonds Really in the Red?
The green credit market has grown 50% annually since 2007, however market sentiment remains mixed on performance. The S&P Green Bond Index is down 0.99% YTD, when most of the bond market has done quite well in 2014. Abundant growth in concert with poor performance could prompt the suggestion that investors are deriving utility from…
- Categories Fixed Income
- Tags green bonds
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- green bonds
Muni Minutes – A Changing of the Seasons
Following in suit with the colors of the trees, investor sentiment appears to be cycling. While the market may not be trading high-yield junk for investment-grade positions as quickly as New Yorkers are trading in their flip-flops and shorts for scarves and umbrellas last week, market demand has shifted in October. The S&P/BGCantor U.S. Treasury…
- Categories Fixed Income
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Late July Muni Minutes
Long-term bonds have posted solid gains thus far in 2014, with rates holding low longer than most expected. The composition of the municipal bond market is heavily weighted with short duration bonds. The looming sentiment of rising rates and inflation has investors focused on reinvestment risk; however, a supply imbalance systemic of voters’ hindrance for…
Mid-July Muni Minutes
Detroit: The anniversary of the city of Detroit essentially declaring bankruptcy by cancelling payments on $40 million of debt obligations last summer is not dragging down the state of Michigan. As observed by the S&P Municipal Bond Michigan General Obligation Index, the state’s debt is trading on par with the rest of the U.S. municipal…
- Categories Fixed Income
- Tags muni minutes, municipal bond index, munis
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- Fixed Income
Inflationary Tales
The market waits in anticipation this week as key economic indicators will be released to shed light on the health and direction of the financial world. The Department of Labor released Consumer Price Index (CPI) data for May showing consumer inflation ticking up 2.1% over the past twelve months. The Federal Reserve has stated an…
- Categories Fixed Income
- Tags bond market, CPI, Europe, inflation, interest rates, S&P
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- Fixed Income