Tag Archives: High Yied

Is 3% The New Black?

As with each summer’s fashion a new color of dress becomes the “new black”.  Pink, green, orange, you make the choice.  In regard to the bond markets the question could be is 3% the new black?  Bill Gross seems to think so, he is calling for economic growth and yields to remain slow and low, Read more […]

U.S. Investment Grade Corporates Are Performing Well, Does A Euro Rate Cut Follow The Recent Dip?

The month of May closed on a high note for bonds as the drop in yields saw the S&P/BGCantor Current 10 Year U.S. Treasury Index closed at a yield of 2.47%.  Treasuries as measured by the S&P/BGCantor U.S. Treasury Bond Index returned 0.7% for the month and 2.12% year-to-date. As of today, the yield on Read more […]

Today’s Economic Indicators not moving the dial on yields.

The yield on the S&P/BGCantor Current 10 Year U.S. Treasury Index since its step down on May 13th as a result of Retail Sales has remained in a range of 2.48% to 2.58%.  There are a number of economic releases scheduled to follow the U.S. Memorial Day Holiday.  Today’s reporting of Durable Goods Orders (0.8% versus Read more […]

Fixed Income Update: Presidents’ Day Week

A short week ahead due to yesterday’s President’s Day Holiday.  Treasuries gained today as the Empire Manufacturing report released today was a 4.48.  The survey of manufacturing executives was bearish when compared to the expected number of 8.5 and its prior number of 12.51.  February’s home builder’s sentiment was also lower as the National Association Read more […]

High Yield Munis Burned by Tobacco Bonds

Tobacco settlement  bonds tracked by the S&P Municipal Bond Tobacco Index are down nearly 9% year to date as yields have risen by over 255bps as the credit risk of these long duration bonds is questioned.  Recent arbitration results have been positive but uncertainty over future disputes and tobacco consumption are pulling these long duration 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 […]

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 […]