Tag Archives: Rieger Report

Municipal Bonds: Hooked on Tobacco

The S&P Municipal Bond Tobacco Index has returned 12.79% year to date as the tobacco settlement bond market has recovered from a dismal 2013 return of -8.77%. Yields of these bonds have fallen 99bps during the year to an average of 5.92%. These long duration higher yielding bonds represent just under 15% of the total Read more […]

Three Myths of the U.S. Senior Loan Market

The S&P/LSTA U.S. Leveraged Loan 100 Index has returned 1.76% year to date under performing vs. fixed rate high yield bonds.  The low rate environment and continued demand for yield generating asset classes has pushed the S&P U.S. Issued High Yield Corporate Bond Index returns to  4.32% year to date as yields have fallen by Read more […]

Preferred Stock Returns 9.61% (TR)

The U.S. preferred stock market is exhibiting the qualities of the hybrid equity / bond like structure they are.  Through May 15th, 2014, the S&P U.S. Preferred Stock Index has recorded a year to date total return of 9.61% mirroring more the bond market than the stock market in this low rate environment.  The index Read more […]

Municipal Bonds Continue Their Climb Out of the Basement

As of mid May 2014, the S&P Municipal Bond Index has returned 5.91% as the supply demand imbalance continues.  New issue supply remains comparatively low to relative to past years and munis have been enjoying a flight to quality halo despite the weaknesses shown by Detroit and Puerto Rico.   The S&P 20 Year High Grade Read more […]

Equity and Credit Markets in Sync?

The companies in the S&P 500 that borrow the most money are enjoying the benefit of a positive credit market.  The cost of buying default protection on the largest bond market borrowers in the S&P 500 is tracked by the S&P/ISDA U.S. 150 Credit Spread Index and has fallen to lows which can be an Read more […]

Long and Short of It: Munis Outshine Equities in 2014 as Demand Holds

Demand for munis continues to outpace supply and the result is the muni market is reflecting strength from the five year maturity range on out.  On the shorter end of the curve, five year non-callable municipal bonds tracked in the S&P AMT-Free Municipal Series 2019 Index have returned 2.19% just about where the S&P 500 Read more […]

Floating Rate Asset Classes

In the weekend Wall Street Journal (May 3, 2014) there is an informative article entitled “The Risks of Floating Rate Funds”.  The article does a great job of delving into the risks of these types of structures and is quite timely as the low rate environment continues. The investor appetite for floating rate assets while facing Read more […]

Special Report: US vs. European Banks CDS

The S&P/ISDA CDS U.S. Financials Select 10 Index held steady widening by a diminutive amount [3bps] for the month of March. The same cannot be said for the S&P/ISDA CDS European Banks Select 15 Index whose spread widened by 35bps in tandem with the news of the banking crisis in Cyprus. Cypriot banks remained closed Read more […]