Tag Archives: fixed income

Jekyll & Hyde: The U.S. Preferred Stock Market

Preferred stocks have a split personality, part equity and part bond. The bond characteristics of preferred stock has, at least for the time being, become the ‘Mr. Hyde’ of the asset class.  The high dividends that preferred stock owners enjoy can be compared to future interest payments of bonds. Like bonds, the prospect of the Read more […]

Something you should know about dim sum bond market

I am sure you have probably heard of, or even tried the Cantonese delicacies dim sum. While many people have a good knowledge of Barbecue Pork Bun or Siu Mai Dumplings, not many can tell exactly what is in the dim sum bond market. Dim sum bonds are the debts that issued in the offshore Read more […]

Fixed Income Laddering

The Federal Reserve’s decision to continue its monthly stimulus purchases on Sept. 18, 2013, had a euphoric effect on the markets, as the S&P 500 immediately rose from 1702 to 1715, eventually closing the day at 1726. Treasuries reacted to the news in the same way, as yields on the 10-year Treasury went from 2.86% Read more […]

Municipal Bonds Bounce Off Bottom

The US Municipal bond market has bounced off its recent bottom even as two anchors continue to weigh it down: Puerto Rico and tobacco settlement bonds. Investment grade tax-exempt bonds tracked in the S&P National AMT-Free Municipal Bond Index have seen a 2.32% positive total return since it’s year to date low on September 5th Read more […]

Holding Bonds As Rates Rise

This week’s FOMC minutes revealed that almost all the members of the committee agreed that it was not yet time to begin tapering the Fed’s asset purchases. Many committee members urged additional caution, and advocated waiting until more concrete evidence about the economy’s recovery was available. The report continued to explain that the members generally Read more […]

Shorter Municipal Bonds Hang In There While Long Municipal Bonds Suffer

Fund outflows in the municipal bond asset class, in part driven by the Detroit bankruptcy, pushed municipal bond performance down in July according to the S&P National AMT-Free Municipal Bond Index. Particularly hard hit was Puerto Rico.  The S&P Municipal Bond Puerto Rico Index was down over 4.1% in July (down 6.61% YTD). State specific Read more […]

What Municipalities are Higher Risk?

Data as of July 25, 2013 What Municipalities are Higher Risk? The bankruptcy of the City of Detroit has raised questions about what other municipalities might be the next to focus on.  In general, bonds with higher yields are riskier than bonds with lower yields.  Using bond yields as the sole variable, the following general Read more […]

Only a Few Hours Left, but June’s Returns Have Not Been Seen Since 2008

U.S. Treasury Bonds: There are just a few hours of trading left to the month of June, but on the whole the month took its toll on fixed income products.  Treasuries, as measured by the S&P/BGCantor U.S. Treasury Bond Index, are down -0.91% for the month.  Year-to-date this index is returning -1.55%.  Yields are up Read more […]

Muni Bonds Suffering in June; Worst Month Since September 2008

Investment grade municipal bonds tracked in the S&P National AMT-Free Municipal Bond Index have seen a negative total return of 4.97%  in June so far, the worst month since September 2008 when the index was down 5.13%.  The yield (Yield to worst) on bonds in the index has risen by 95bps since the end of Read more […]

Anticipation, It’s Making Me Wait

And waiting is exactly what the markets did for most of Wednesday, right up until the 2 p.m. press release from the Federal Open Market Committee (FOMC) meeting. Following the press release, markets sold off on confirmation that economic activity has been expanding at a moderate pace. As the release stated, “Labor market conditions have Read more […]