Best of the Bond Market for August 16th, 2012
Bond Girl: The NY Fed should be embarrassed that it allowed the muni market default piece to be published. – It is one thing to read intellectually dishonest drivel about the municipal bond market in the mainstream media (which investors appear to be ignoring anyway), but it is another thing entirely to see it promoted as research by the Federal Reserve Bank of New York. Such is the case with this post on The Untold Story of Municipal Defaults on Liberty Street Economics.
Learn Bonds: Municipal Bond experts rip NY Fed’s piece on muni market defaults to shreds – the reaction to the Fed’s piece was quick and severe.
CNBC Video: Alexandra Lebenthal on municipal bond defaults
BlackRock: Recent muni market headlines got you scared? You may want to check out dedicated tax bonds. – Dedicated-tax debt, or special-tax debt, refers to a variety of bond issues whose primary repayment is secured by a stream of governmental tax or fee revenues legally pledged for the benefit of bondholders.
ETF Trends: High yield ETFs have added more than $1 Billion in the last 4 weeks – Both JNK and HYG are among the top 5 best selling ETFs for the last 4 weeks.
Charles Schwab: There are better opportunities currently than government and long duration bonds – We think investors have the potential to diversify more, increase yield and lower duration risk by looking into other sectors of the bond market such as high-yield bonds, international bonds, preferred securities and multi-sector bond funds.
The Financial Lexicon: 4 Bonds with better than 6% yields – details for four corporate bonds currently yielding more than 6%.
Rajiv Tarigopula: A list of Microsoft bonds yielding more than 3.5% – For investors wary of the risks in MSFT equities or equities in general, take a look at a few of MSFT’s corporate bonds that offer yields greater than 3.5% today; I’ve excluded any bonds with explicitly apparent special redemption provisions.
Bond Squawk: The 10 year treasury is blowing through support levels – 10yr US yields surged higher yesterday through key support at 1.73/77% – the June chart high and the 38.2% retracement of the entire March-July rally. This signals a more significant bearish turn for 1.82%, then 1.87/92% – the 200-day moving average and the 50% retracement of the March-July rally – where we look for fresh buying. Above would aim at 1.98%.
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http://twitter.com/PIMCO/status/236103762475905025
231 unrated muni defaults over the past two years (may '10-12) representing a mere 5bn of a 3.5 trillion dollar market #muniland
— Muni Trader (@MuniTrader) August 16, 2012
Sign from the HY market gods. First HY deal cancel/withdrawn. Service master. 1bil withdrawn.
— B-unit (@HighYldTrader) August 16, 2012
Wow monster home run. Gundlach is 100 over for the week. Actually a pos totl return of 60c. Little blood among other bond funds. Pimco flat.
— B-unit (@HighYldTrader) August 16, 2012
Not all bad for @PIMCO , their new $PDI fund continues its ridiculous NAV performance – fund is a steal and almost w/out premium here
— David Schawel (@DavidSchawel) August 16, 2012
