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Zions Direct Announces Auction Results Auctions of Municipal and Corporate Bonds for Week Ending October 29, 2010

Zions Direct (www.zionsdirect.com), 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.
 

In auctions closed from October 18, 2010 to October 22, 2010, investors purchasing municipal bonds in the auctions received average tax-exempt yields 0.64 percentage points, or 64 basis points, higher than similar bonds as reported by the Municipal Securities Rulemaking Board (MSRB). Customers that purchased corporate bonds in the auctions received average taxable yields 92 basis points higher than comparable bonds reported in FINRA's Trade Reporting and Compliance Engine (TRACE).

ZIONS DIRECT / BONDDESK® MARKET SNAPSHOT
Municipal Bonds' Average Yields Trade Data (source: MSRB)

 

 

2010 - 2011

 

2011

 

2012

 

2013

 

2015

 

2017

 

2020

Rating

 

< 9mo

 

1 yr

 

2 yr

 

3 yr

 

5 yr

 

7 yr

 

10 yr

AAA

 

0.43%

 

0.59%

 

0.75%

 

0.99%

 

1.45%

 

2.06%

 

2.64%

AA

 

0.49%

 

0.60%

 

0.82%

 

1.11%

 

1.62%

 

2.28%

 

2.88%

A

 

0.72%

 

0.93%

 

1.41%

 

1.75%

 

2.29%

 

3.02%

 

3.55%

BBB

 

3.97%

 

1.78%

 

1.74%

 

2.55%

 

3.13%

 

4.08%

 

4.18%

Insured AAA-AA

 

0.59%

 

0.61%

 

0.85%

 

1.15%

 

1.76%

 

2.23%

 

2.65%

Municipal Bond Auction Comparison Data (auction data from auctions.zionsdirect.com)

Issuer

 

Term

 

Rating

 

Auction

 

MSRB

 

Difference

 

 

 

 

 

 

Yield 

 

Avg Yield

 

(basis points)

Snohomish Cnty SD, WA GO

 

1 Month

 

AA

 

1.74%

 

0.49%

 

125

Elko Cnty, NV GO

 

2 Month

 

A

 

1.44%

 

0.72%

 

72

Randolph Cnty, IL GO

 

2 Month

 

Insured AAA

 

1.40%

 

0.59%

 

81

Cypress-Fairbanks ISD, TX GO

 

4 Month

 

Insured AAA

 

1.11%

 

0.59%

 

52

State of Utah, UT GO

 

8 Month

 

AAA

 

1.18%

 

0.43%

 

74

Pierce & King Cntys SD, WA GO

 

2 Year

 

AA

 

1.65%

 

0.82%

 

82

Polk Cnty SD, FL Rev

 

3 Year

 

Insured AA

 

2.25%

 

1.15%

 

110

Average Difference

 

 

 

 

 

 

 

 

 

85

Corporate Bonds' Average Yields Trade Data (source: FINRA's TRACE)

 

 

2010 - 2011

 

2011

 

2012

 

2013

 

2015

 

2017

 

2020

Rating

 

< 9mo

 

1 yr

 

2 yr

 

3 yr

 

5 yr

 

7 yr

 

10 yr

AAA

 

0.22%

 

0.33%

 

0.48%

 

0.95%

 

1.63%

 

2.33%

 

3.04%

AA

 

0.41%

 

0.54%

 

1.02%

 

1.44%

 

2.22%

 

3.42%

 

4.03%

A

 

0.47%

 

0.79%

 

1.14%

 

1.79%

 

2.61%

 

3.76%

 

4.33%

BBB

 

0.73%

 

1.06%

 

2.23%

 

2.22%

 

3.13%

 

4.12%

 

4.53%

Corporate Bond Auction Comparison Data (auction data from auctions.zionsdirect.com)

Issuer

 

Term

 

Rating

 

Auction

 

TRACE

 

Difference

 

 

 

 

 

 

Yield

 

Avg Yield

 

(basis points)

General Electric Capital

 

1 Month

 

AA

 

1.15%

 

0.41%

 

74

Caterpillar Fin Srvcs

 

1 Month

 

A

 

1.22%

 

0.47%

 

75

Citigroup

 

3 Month

 

A

 

0.84%

 

0.47%

 

37

Wal-Mart

 

3 Month

 

AA

 

1.38%

 

0.41%

 

96

Procter & Gamble

 

10 Month

 

AA

 

1.24%

 

0.54%

 

71

3M

 

1 Year

 

AA

 

1.37%

 

0.54%

 

83

General Electric Capital

 

16 Month

 

AA

 

2.23%

 

0.54%

 

169

Average Difference

 

 

 

 

 

 

 

 

 

86


For more information on Zions Direct and the BondDesk Market Snapshot go to
 www.zionsdirect.com to sign up to receive the free weekly newsletter or visit www.think.zionsdirect.com to view a Market Snapshot archive.

Market Snapshot Information Disclaimer

MSRB and TRACE bond trade data displayed as weighted average yield. Municipal bond information from MSRB as of August 20, 2010. 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 August 20, 2010.

Corporate bond information from FINRA's Trade Reporting and Compliance Engine (TRACE) as of August 20, 2010. 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. 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.

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.

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.

Terms are defined as follows: < 9 months = anything less than .75 years to maturity; 1 year = anything greater than 0.75 years and less than 1.5 years to maturity; 2 years = anything greater than 1.5 years and less than 2.5 years to maturity; 3 years = anything greater than 2.5 years and less than 4 years to maturity; 5 years = anything greater than 4 years and less than 6 years to maturity; 7 years = anything greater than 6 years and less than 8.5 years to maturity; 10 years = anything greater than 8.5 years and less than 11.5 years to maturity.

Investment products and services offered through Zions Direct, member of FINRA/SIPC, a non-bank subsidiary of Zions Bank are NOT insured by the FDIC or any federal or state governmental agency, are NOT deposits or other obligations of, or guaranteed by, Zions Bancorporation or its affiliates, and MAY be subject to investment risks, including the possible loss of principal value or amount invested. FDIC-insured CDs are insured up to $250,000 per individual account holder per bank.