The Week In Review: Investment Grade Corporate Bonds

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 |  Includes: AGG, BND, C, DOW, ETP, GS, JPM, LQD, MDLZ, MS, RIG
by: The Financial Lexicon

Here's your week in review for the investment grade corporate bond market:

During the trading week of January 23rd, $71.042 billion of publicly-traded investment grade corporate bonds (NYSEARCA:LQD) changed hands. On Monday and Tuesday, the ratio of advancers to decliners was relatively even. Notable improvement in the ratio of advancers to decliners began on Wednesday, the day of the Fed's announcement regarding interest rates likely remaining very low, at least through late 2014. The improvement continued through the remainder of the week. The heaviest dollar volume of the week was on Thursday, the same day that advancers outpaced decliners by the largest amount of the week: 2.18 to 1.

Below is a table outlining last week's pertinent bond-specific information from the investment grade corporate bond (NYSEARCA:BND) market:

Investment Grade 1/23/2012 1/24/2012 1/25/2012 1/26/2012 1/27/2012
Total Issues Traded 4,140 4,189 4,141 4,053 3,914
Advancers 1,827 2,006 2,386 2,633 2,186
Decliners 2,014 1,919 1,487 1,209 1,483
Unchanged 64 56 68 56 68
Dollar Volume (Billions) $12.113 $14.843 $14.680 $17.021 $12.385
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In terms of the most actively traded issues, all five days of the week saw a financial company lead the way. Morgan Stanley's (NYSE:MS) note maturing 7/28/2021 with a 5.50% coupon was the only security to appear twice among the two most actively traded issues of the day, leading the way on Wednesday and Thursday.

Below is a table outlining the most actively traded and second most actively traded corporates (NYSEARCA:AGG) of the week, broken down by day:

Investment Grade Most Actively Traded Second Most Actively Traded
Monday, 1/23/2012 Citigroup (NYSE:C), CUSIP: 172967EQ0 JPMorgan Chase (NYSE:JPM), CUSIP: 46623EJE0
Tuesday, 1/24/2012 Goldman Sachs (NYSE:GS), CUSIP: 38141GGQ1 Dow Chemical (NYSE:DOW), CUSIP: 260543CF8
Wednesday, 1/25/2012 Morgan Stanley , CUSIP: 61747WAL3 Kraft Foods (KFT), CUSIP: 50075NAZ7
Thursday, 1/26/2012 Morgan Stanley , CUSIP: 61747WAL3 Energy Transfer Partners (NYSE:ETP), CUSIP: 29273RAR0
Friday, 1/27/2012 Citigroup , CUSIP: 172967FT3 Transocean (NYSE:RIG), CUSIP: 893830BB4
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Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Additional disclosure: I am long CUSIP: 172967FT3 (Citigroup). I am long various CUSIPs from Goldman Sachs (GS) and JP Morgan (JPM), although none were mentioned in this article.

Disclaimer: All data mentioned in this article came from FINRA's Trade Reporting and Compliance Engine (TRACE). I cannot vouch for the accuracy of FINRA's data.