Zions Direct Municipal Bond Market Snapshot for Week Ending October 19, 2012
Auction customers received average yields 75 basis points higher than market
SALT LAKE CITY, Oct. 23, 2012 /PRNewswire/ -- Zions Direct, the online broker-dealer that allows its customers to purchase municipal 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 municipal bonds in the auctions received average tax-exempt yields 0.75 percentage points, or 75 basis points, higher than similar bonds as reported by the Municipal Securities Rulemaking Board (MSRB).
Municipal Bond Auction Comparison Data (auction data from auctions.zionsdirect.com)
| Issuer |
Term |
Rating |
Auction Yield |
MSRB |
Difference |
| Avg Yield |
(basis points) |
||||
| Spokane Cnty, WA GO |
1 Month |
Insured AA |
0.75% |
0.36% |
39 |
| Kate Ind Sch Dist, TX GO |
4 Month |
Insured AAA |
0.70% |
0.36% |
34 |
| Clark Cnty SD, NV GO |
8 Month |
Insured AA |
1.10% |
0.36% |
74 |
| San Luis, AZ Rev |
8 Month |
Insured A |
1.30% |
0.36% |
94 |
| Santa Fe, NM Rev |
19 Month |
AA |
1.27% |
0.48% |
79 |
| Texas Pub Fin Auth, TX Rev |
1 Month |
Insured AA |
1.70% |
0.36% |
134 |
| State of Hawaii, GO |
5 Month |
Insured AA |
0.88% |
0.36% |
52 |
| Oklahoma St Dev Fin Auth, Rev |
7 Month |
AA |
0.89% |
0.32% |
57 |
| Cntrl Ohio Solid Wst Auth, GO |
13 Month |
Insured AAA |
1.24% |
0.44% |
80 |
| State of Florida Bd of Ed, FL GO |
19 Month |
Insured AA |
1.25% |
0.51% |
74 |
| Hidalgo Cnty, TX GO- ALL or NONE |
10 Month |
Insured AA |
1.05% |
0.44% |
61 |
| Cobb Cnty, GA GO |
2 Month |
AAA |
0.79% |
0.28% |
51 |
| Columbus, OH GO |
8 Month |
AAA |
1.15% |
0.28% |
87 |
| Yuma Muni Ppty Corp, AZ Rev |
8 Month |
Insured A |
1.35% |
0.36% |
99 |
| Grand Prairie, TX GO |
16 Month |
Insured AA |
1.18% |
0.44% |
74 |
| Hillsborough Cnty Sch Brd, FL Cop |
20 Month |
Insured AA |
1.46% |
0.51% |
95 |
| Pueblo Cnty Sch Dist #70, CO GO |
1 Month |
AA |
0.75% |
0.32% |
43 |
| Utah Transit Authority, UT Rev |
8 Month |
Insured AA |
1.00% |
0.36% |
64 |
| Mass St Hlth & Ed Fac Auth, Rev |
8 Month |
Insured A |
1.65% |
0.36% |
129 |
| Denver City & Co SD #1, CO GO |
13 Month |
Insured AA |
1.13% |
0.44% |
69 |
| Miami-Dade Cnty Exp Auth, FL Rev |
20 Month |
Insured AA |
1.85% |
0.51% |
134 |
| Katy Ind Sch Dist, TX GO |
4 Month |
Insured AAA |
0.59% |
0.36% |
23 |
| Las Vegas Valley Wtr Dist, NV GO |
7 Month |
AA |
1.14% |
0.32% |
82 |
| State of Florida, Rev |
8 Month |
A |
1.30% |
0.49% |
81 |
| Dallas Ind Sch Dist, TX GO |
16 Month |
Insured AAA |
1.20% |
0.44% |
76 |
| Pembroke Pines, FL GO |
22 Month |
Insured AA |
1.28% |
0.51% |
77 |
| Average Difference |
75 |
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
Municipal Bonds' Average Yields Trade Data* (source: MSRB)
| 2012 – 2013 |
2013 |
2014 |
2015 |
2017 |
2019 |
2022 |
|
| Rating |
<9mo |
1 yr |
2 yr |
3 yr |
5 yr |
7 yr |
10 yr |
| AAA |
0.32% |
0.34% |
0.39% |
0.50% |
0.71% |
1.07% |
1.57% |
| AA |
0.32% |
0.37% |
0.48% |
0.62% |
0.97% |
1.42% |
1.87% |
| A |
0.39% |
0.47% |
0.64% |
0.91% |
1.25% |
1.83% |
2.45% |
| BBB |
0.57% |
0.67% |
1.36% |
2.31% |
2.87% |
2.83% |
3.68% |
| Insured AAA-AA |
0.39% |
0.51% |
0.52% |
0.72% |
1.05% |
1.55% |
1.86% |
*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
MSRB bond trade data displayed as weighted average yield. Municipal bond information from MSRB as of October 19, 2012. The Trade Data was developed by BondDesk Group based on information from MSRB's Real-Time Transaction Reporting System, and excludes transactions in taxable 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.
Municipal bonds are exempt from federal tax and may or may not be tax-exempt in individual states. The inclusion of municipal bonds selected by tax-exempt status is generated from pertinent federal tax attributes as populated from Muller, IDC, and/or BD ATS data sources.
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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