Zions Direct Corporate Bond Market Snapshot for Week Ending October 19, 2012
Auction customers received average yields 59 basis points higher than market
SALT LAKE CITY, Oct. 24, 2012 /PRNewswire/ -- Zions Direct, the online broker-dealer that allows its customers to purchase corporate bonds in its daily web-based auctions, announces its weekly auction results. Since 2006, Zions Direct has auctioned over $2 billion in more than 7,000 fixed-income auctions.
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In auctions closed from October 15, 2012 to October 19, 2012, investors purchasing corporate bonds in the auctions received average taxable yields 0.59 percentage points, or 59 basis points, higher than comparable bonds reported in FINRA's Trade Reporting and Compliance Engine (TRACE).
Corporate Bond Auction Comparison Data (auction data from auctions.zionsdirect.com)
| Issuer |
Term |
Rating |
Auction Yield |
TRACE |
Difference |
| Avg Yield |
(basis points) |
||||
| Walt Disney Company |
1 Month |
A |
0.85% |
0.35% |
50 |
| Bank of America / Merrill Lynch & Co |
4 Month |
BBB |
1.13% |
0.56% |
57 |
| Hewlett-Packard Co |
4 Month |
BBB |
1.22% |
0.56% |
66 |
| American Express Co |
9 Month |
BBB |
1.00% |
0.56% |
44 |
| Mondelez / Formerly Kraft Foods Inc. |
11 Month |
BBB |
1.25% |
1.01% |
24 |
| Metlife Inc |
2 Month |
A |
0.90% |
0.35% |
55 |
| Morgan Stanley |
4 Month |
BBB |
0.99% |
0.56% |
43 |
| Citigroup, Inc. |
6 Month |
BBB |
0.87% |
0.56% |
31 |
| Rio Tinto Finance (USA) LTD |
9 Month |
A |
0.90% |
0.35% |
55 |
| Ally Fin Inc (FDIC Ins) |
2 Month |
AA |
0.93% |
0.22% |
71 |
| Bank of America Corp |
3 Month |
BBB |
1.33% |
0.56% |
77 |
| Honeywell International |
4 Month |
A |
0.85% |
0.35% |
50 |
| Oracle Corp |
6 Month |
A |
0.90% |
0.35% |
55 |
| Hewlett-Packard Co |
11 Month |
BBB |
1.25% |
1.01% |
24 |
| Abbott Labs |
1 Month |
A |
0.91% |
0.35% |
56 |
| General Electric Capital Corp |
3 Month |
AA |
0.80% |
0.22% |
58 |
| E.I. Du Pont de Nemours |
4 Month |
A |
0.78% |
0.35% |
43 |
| Goldman Sachs Group Inc |
9 Month |
A |
1.78% |
0.35% |
143 |
| Berkshire Hathaway Finance |
1 Year |
AA |
0.92% |
0.38% |
54 |
| General Electric Capital Corp |
2 Month |
AA |
0.95% |
0.22% |
73 |
| JP Morgan / Bank One |
3 Month |
A |
1.29% |
0.35% |
94 |
| Kellogg Co |
4 Month |
BBB |
0.94% |
0.56% |
38 |
| Emerson Electric Company |
6 Month |
A |
1.16% |
0.35% |
81 |
| Glaxosmithkline Cap Inc |
7 Month |
A |
1.15% |
0.35% |
80 |
| Average Difference |
59 |
Zions Direct, in conjunction with BondDesk Group LLC, regularly publishes a Market Snapshot for investors to help understand the current bond market, summarizing current weighted-average yields of investment-grade municipal and corporate bonds.
ZIONS DIRECT / BONDDESK® MARKET SNAPSHOT
Corporate Bonds' Average Yields Trade Data* (source: FINRA's TRACE)
| 2012 – 2013 |
2013 |
2014 |
2015 |
2017 |
2019 |
2022 |
|
| Rating |
<9mo |
1 yr |
2 yr |
3 yr |
5 yr |
7 yr |
10 yr |
| AAA |
0.20% |
0.20% |
0.38% |
0.64% |
1.08% |
1.85% |
2.16% |
| AA |
0.26% |
0.35% |
0.58% |
0.79% |
1.36% |
2.26% |
2.53% |
| A |
0.35% |
0.53% |
0.72% |
0.98% |
1.48% |
2.33% |
2.78% |
| BBB |
0.61% |
0.88% |
1.21% |
2.07% |
2.35% |
3.55% |
3.57% |
*Terms are defined as follows: < 9 months = anything up to .75 years to maturity; 1 year = anything greater than 0.75 years up to 1.5 years to maturity; 2 years = anything greater than 1.5 years up to 2.5 years to maturity; 3 years = anything greater than 2.5 years up to 4 years to maturity; 5 years = anything greater than 4 years up to 6 years to maturity; 7 years = anything greater than 6 years up to 8.5 years to maturity; 10 years = anything greater than 8.5 years up to 11.5 years to maturity.
THE INFORMATION IN THE MARKET SNAPSHOT IS NOT INTENDED TO SERVE AS THE BASIS FOR INVESTMENT DECISIONS. PAST PERFORMANCE IS NOT AN INDICATION OF FUTURE RESULTS.
For more information about Zions Direct and to sign up to receive the free weekly e-newsletter, visit zionsdirect.com. This and past Market Snapshots can be found at think.zionsdirect.com.
Market Snapshot Information Disclaimer
TRACE bond trade data displayed as weighted average yield. Corporate bond information from FINRA's Trade Reporting and Compliance Engine (TRACE) as of October 19, 2012. The Trade Data was developed by BondDesk Group based on trade reporting information from TRACE, and excludes transactions in callable and floating-rate coupon bonds. Auction information from auctions.zionsdirect.com as of October 19, 2012. The aggregate rating for each bond is based on average ratings from Moody's and S&P (when available).
Although information in this Market Snapshot is believed to be reliable, Zions Direct and BondDesk make no express or implied warranties of any kind regarding this information, including as to its accuracy or completeness. Auction data excludes bonds in undersubscribed auctions. Any specific weekly results may be heavily influenced by large, atypical volatility, trade volume, or other unusual investing events.
Investment products and services offered through Zions Direct, member of FINRA/SIPC.
Investment Products: Not FDIC Insured • No Bank Guarantee • May Lose Value
Zions Direct is a wholly owned non-bank subsidiary of Zions Bank.
SOURCE Zions Direct
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