State Street Rolls Out Short Term Corporate Bond ETF
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The SPDR® Barclays Capital Short Term Corporate Bond ETF seeks to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of an index that tracks the short term US corporate bond market.
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Country: United States
Thursday, Aug 162012, 8:27 AMSales of 30-year corporate debt hit $86.3B YTD this week, already surpassing the $84.7B sold in all of 2011. Rubbing their eyes in disbelief over the low yields available, businesses are rushing issues to market, and pension plans - desperate for yield and shunning the Treasury market - are eager buyers. LQD +4.3% YTD while yielding 4%. |Thursday, Aug 162012, 8:27 AM| 1 Comment
Monday, Aug 132012, 2:53 PMHow speedy is corporate bond issuance of late? Since July it's up 21% over the brisk pace recorded in the same period last year. Even with a gusher of sales, it remains a seller's market, with new-issue concessions minimal or negative for a 5th straight week, says S&P. LQD +5.4% YTD while yielding about 4%. |Monday, Aug 132012, 2:53 PM| 3 Comments
Monday, Aug 62012, 10:10 AM"A food fight" for new junk bond offerings is the result of investors' quest for yields as high-yield fund managers struggle to put to work $43.1B of inflows thus far this year. The money is pouring in as debt sales slow - off 54% since May. "Demand is intense," says corporate bond vet Marty Fridson. "It's become tough to buy acceptable quality paper." |Monday, Aug 62012, 10:10 AM| 2 Comments
Thursday, Jul 192012, 3:35 PMYields on U.S. corporate bonds fall to an average 3.98%, according to BAML, the first time ever breaking the 4% barrier. "The bond market is more focused on trying to find secure assets that offer some value," says an analyst. The spread between corporate debt and Treasurys has fallen to 285 basis points - low, but not yet a record. |Thursday, Jul 192012, 3:35 PM| 1 Comment
Thursday, Jul 122012, 2:49 PMCorporate bonds have rarely been more popular, but their risk - as measured by duration - has never been higher as firms take advantage of low borrowing rates to issue plenty of longer-term debt. High duration makes a bond's value more sensitive to rising interest rates, meaning just a small move higher could wipe out gains from a year or more's coupon payments. |Thursday, Jul 122012, 2:49 PM| 4 Comments
Thursday, Jul 122012, 12:28 PMMore on the demand for "high quality" yield: Nestle sells €500M of 7-year notes at a yield of 1.56%, 2 bps less than France borrows at. "We sold (our) gilts and Treasurys," says one fund manager, opting instead to put his money into "good-quality, investment-grade corporates." |Thursday, Jul 122012, 12:28 PM| 4 Comments
Monday, Jul 92012, 8:16 AMThe "fetishization" of bond funds is among the reasons Josh Brown likes stocks in H2. After a Q2 in which LQD and BND led all ETF inflows (continuing a year of bond fund inflows and stock fund outflows), Barron's chips in this week by enshrining bonds on its cover. |Monday, Jul 92012, 8:16 AM| Comment!
Thursday, Jun 142012, 6:51 AMMoney managers and major banks are discussing the possible creation of a stock-market equivalent for corporate bonds, with sources saying the parties are interested in setting up a centralized electronic market where all participants could trade bonds freely with one another. The discussions, still in an early stage, highlight the concern over regulatory shifts that some fear will make bond trading more expensive. |Thursday, Jun 142012, 6:51 AM| 5 Comments
Wednesday, Apr 42012, 12:33 PMFinra fines a bond dealer and its head trader for charging customers excessive markups on more than 1.5K municipal bond and 1.7K CMO transactions over a 2-year period. "Precisely why retail clients should never buy actual bonds (use ETFs and closed-end funds)," suggests a trader. |Wednesday, Apr 42012, 12:33 PM| Comment!
Friday, Mar 92012, 2:41 PMTen-year Treasury yields at 2% suggest an economic slowdown, while narrowing corporate spreads point to a healthy expansion, notes Sober Look. It's Treasury yields looking more suspect given the rise in inflation expectations, meaning it's a matter of time before the 10-year begins a move towards 3%. TLT -0.3%. |Friday, Mar 92012, 2:41 PM| 4 Comments
Wednesday, Mar 72012, 10:54 AMWhile it seems like "a complete no-brainer" for firms to take advantage of cheap debt, writes the FT's Lex, investors need to remember that rates are low because the economic outlook is depressed. If the aim is just "to take advantage of cheap rates, it is not unlike the crazy behavior that caused them to be low in the first place." |Wednesday, Mar 72012, 10:54 AM| Comment!
Tuesday, Mar 62012, 6:02 AMCompanies sold $19.7B worth of bonds yesterday as they sought to exploit what feel like eternally low interest rates and heavy demand from investors looking to do something semi-useful with their cash. DirecTV (DTV) led the way by raising $4B, with UnitedHealth (UNH), Philips (PHG) and CenturyLink (CTL) also joining the party. |Tuesday, Mar 62012, 6:02 AM| Comment!
Thursday, Jan 52012, 1:02 PMFitch Ratings sees a variety of macroeconomic factors - highlighted by sovereign risks in Europe - ushering in a period of "conservatism" in liquidity management that will help set the stage for an extended period of relatively stable credit condition. "Fitch believes most U.S. corporates are positioned to weather an extended period of weak economic growth or a double-dip in the U.S. at least as severe as the recent trough." |Thursday, Jan 52012, 1:02 PM| 1 Comment
Wednesday, Nov 162011, 10:05 AMDavid Rosenberg, whose calls on Treasurys have been on the money for years, is turning his attention to corporate debt. Priced for an 8% default rate, high-quality corporate bonds could provide equity-like returns without the risk, even if the economy weakens. The gorilla in high-grade corporate bond ETFs: LQD. Others here. |Wednesday, Nov 162011, 10:05 AM| Comment!
Thursday, May 262011, 1:21 PMAnalysts at Citi believe the "unfriendly stage of the leverage cycle" is coming, expecting the recent underperformance of credit relative to stocks is just getting started. Toss in the end of QEII and they "see little reason to chase the market, and quite a few reasons to lighten up." |Thursday, May 262011, 1:21 PM| 2 Comments