Tag Archives: corporate bond
Laddered Protection
Continuing the theme of rising interest rates and following up from my last blog, “With all the News of Higher Interest Rates, Don’t Forget About Floating-Rate Debt,” bond laddering is a strategy that provides increased income and the ability to adjust the stream of income in a rising-interest-rate environment. The approach is to invest in…
- Categories Fixed Income
- Other Tags
Asian Fixed Income: Mega 30 in China Versus U.S.
Despite the lackluster performance of Chinese bonds in 2017, the market value tracked by the S&P China Bond Index continued to expand and reached CNY 56.9 trillion (USD 9 trillion) as of Feb. 26, 2018. While it is the world’s third-largest bond market and remains far from the giant U.S. bond market (valued at USD…
- Categories Fixed Income
- Other Tags
Asian Fixed Income: China and the Global Bond Market
In a previous piece, we discussed that China’s lackluster performance had made it the worst-performing country in the Pan Asian bond market in 2017, and that it was the only country that closed the year in negative territory. The one-year total return of the S&P China Bond Index fell 0.29% last year (see Exhibit 1),…
- Categories Fixed Income
- Other Tags
- Categories
- Fixed Income
- Other Tags
Investing in the U.S. Corporate Bond Market From an Asian Perspective
As Asian market participants have become more aware of the importance of portfolio diversification, they have been paying more attention to the U.S. corporate bond market. The S&P 500 Bond Index seeks to measure the broad and relatively liquid U.S. corporate bond market, and it is designed to be a corporate-bond counterpart to the iconic…
- Categories Fixed Income
- Other Tags
- Categories
- Fixed Income
- Other Tags
A Quick Performance Check on U.S. Preferreds
There are only a couple weeks to go until the end of the year, and for a while now, the investing public has seen plenty of material supporting the benefits or risks of diversifying a portfolio through the use of preferred securities. This hybrid type product touts the benefits of high yields, steady income, and…
- Categories Fixed Income
- Other Tags
Asian Fixed Income: Two Growth Segments in China’s Bond Market
China’s bond market continued to expand in 2017. The local currency bond market, as tracked by the S&P China Bond Index, grew over 19% in the past year. As of June 30, 2017, the S&P China Bond Index tracked 9,342 bonds with a market value of CNY 51 billion. Two segments that recorded robust growth…
- Categories Fixed Income
- Other Tags
- Categories
- Fixed Income
- Other Tags
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…
- Categories Fixed Income
- Other Tags
- Categories
- Fixed Income
- Other Tags
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,…
- Categories Fixed Income
- Other Tags
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…
- Categories Fixed Income
- Other Tags
- Categories
- Fixed Income
- Other Tags
Rieger Report: High Yield Domination
High yield bonds have been marching along and putting up returns that are dominating the investment grade bond markets. U.S. junk bonds continue to have no stink to them as demand for yield far outweighs the supply and seemingly the credit risks associated with these bonds. The bonds of larger entities tracked in the S&P 500…
- Categories Fixed Income
- Other Tags
- Categories
- Fixed Income
- Other Tags