The Week In Review: Investment Grade Corporate Bonds

Includes: AGG, BND, GS, LQD, PBR
by: The Financial Lexicon

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

During the trading week of January 30th, $76.721 billion of publicly-traded investment grade corporate bonds (NYSEARCA:LQD) changed hands, versus $71.042 billion the week prior. Monday through Thursday saw progressively more dollar volume come into the market, rising from $12.152 billion on Monday to $18.408 billion on Thursday. On Friday, the volume dropped to $13.599 billion. The advancers/decliners ratio remained above one through Thursday, reaching as high as 1.667 on Tuesday and as low as 1.135 on Wednesday. On Friday, the ratio dipped to 0.81. The week's high of 1.667 on $15.573 billion was significantly lower than the previous week's high of 2.18 on $17.021 billion.

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

Investment Grade 1/30/2012 1/31/2012 2/1/2012 2/2/2012 2/3/2012
Advancers 2,384 2,541 2,079 2,323 1,643
Decliners 1,543 1,524 1,831 1,675 2,028
Advancers / Decliners Ratio 1.545 1.667 1.135 1.387 0.810
Unchanged 67 75 65 54 57
Dollar Volume (Billions) $12.152 $15.573 $16.989 $18.408 $13.599
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In terms of the most actively traded issues, all five days of the week saw a financial company or the financial arm of a non-financial company lead the way. Goldman Sachs' (NYSE:GS) note maturing 1/24/2022 with a 5.75% coupon and Petrobras International Finance's (NYSE:PBR) note maturing 1/27/2021 with a 5.375% coupon each lead the way twice during the week. Other well known companies with corporate notes appearing in the top ten most actively traded investment grade notes at some point during the week include: Morgan Stanley (NYSE:MS), Bank of America (NYSE:BAC), Citigroup (NYSE:C), AT&T (NYSE:T), Wells Fargo (NYSE:WFC), Duke Energy (NYSE:DUK), Xerox (NYSE:XRX), JPMorgan Chase (NYSE:JPM), and Deutsche Bank (NYSE:DB).

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, 1/30/2012 GE Capital (NYSE:GE), CUSIP: 36962G5F7 Citigroup, CUSIP: 172967FW6
Tuesday, 1/31/2012 Goldman Sachs, CUSIP: 38141GGS7 Wells Fargo, CUSIP: 949746NY3
Wednesday, 2/1/2012 Goldman Sachs, CUSIP: 38141GGS7 Morgan Stanley, CUSIP: 61747WAL3
Thursday, 2/2/2012 Petrobras Int'l Finance, CUSIP: 71645WAR2 Bank of America, CUSIP: 06051GEM7
Friday, 2/3/2012 Petrobras Int'l Finance, CUSIP: 71645WAR2 Bank of America, CUSIP: 06051GEM7
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Disclosure: I am long T.

Additional disclosure: I am long various CUSIPs of BAC, JPM, C, GS, and WFC. The underlying 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.