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Zions Direct Announces Auction Results - Auctions of Municipal and Corporate Bonds for week ending January 7, 2011

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 January 3, 2011 to January 7, 2011, 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

0.54%

0.75%

1.06%

1.31%

1.85%

2.49%

3.14%

AA

0.76%

0.82%

1.06%

1.51%

2.16%

2.81%

3.42%

A

1.40%

1.35%

1.78%

2.37%

3.14%

3.69%

4.22%

BBB

2.05%

1.35%

2.67%

2.47%

3.49%

4.39%

4.86%

Insured AAA-AA

0.70%

0.84%

1.15%

1.74%

2.29%

2.91%

3.64%


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

Issuer

Term

Rating

Auction Yield

MSRB

Difference

 

 

 

 

Avg Yield

(basis points)

Alpine SD, UT GO

2 Month

Insured AAA

1.15%

0.70%

45

Connecticut St Special Tax Oblig Rev

1 Year

AA

1.85%

0.82%

103

Blount Cnty, TN

3 Month

AA

1.45%

0.76%

69

Davis Cnty SD, UT GO

2.5 Year

Insured AAA

1.91%

1.15%

76

Taunton, MA GO

4 Month

Insured AA

1.73%

0.70%

103

Alaska Municipal Bond Bank Authority

11 Month

A

2.25%

1.35%

90

Kane & De Kalb Cntys

1 Month

AA

1.50%

0.76%

74

North Texas Municipal Water District

17 Month

AA

2.27%

0.82%

145

State of Utah, UT GO

6 Month

AAA

1.09%

0.54%

55

State of North Carolina, GO

4 Month

AAA

1.35%

0.54%

81

Average Difference

 

 

 

 

84


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

0.24%

0.43%

0.72%

1.61%

2.64%

3.17%

3.75%

AA

0.49%

0.74%

1.30%

1.98%

3.07%

3.86%

4.47%

A

0.55%

0.81%

1.50%

2.39%

3.33%

4.55%

4.95%

BBB

0.69%

1.24%

2.12%

2.91%

3.58%

4.75%

5.12%


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

Issuer

Term

Rating

Auction Yield

TRACE

Difference

 

 

 

 

Avg Yield

(basis points)

Diamler Finance NA LLC

1 Month

BBB

2.19%

0.69%

150

Caterpillar Fin Srvcs

14 Month

A

2.50%

0.81%

169

General Electric Capital

1 Month

AA

2.05%

0.49%

156

Home Depot

2 Month

BBB

1.50%

0.69%

81

General Electric Capital

18 Month

AA

2.10%

0.74%

136

JP Morgan

5 Month

A

1.83%

0.55%

128

Bank of America

7 Month

A

2.32%

0.55%

177

Home Depot

2 Month

BBB

1.35%

0.69%

66

Caterpillar Fin Srvcs

14 Month

A

1.97%

0.81%

115

Average Difference

 

 

 

 

131

           


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

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.


About Zions Direct

Zions Direct is a broker-dealer that specializes in offering securities for self-directed and fixed income-focused investors. Zions Direct allows retail investors to buy FDIC-insured certificates of deposit and corporate and municipal bonds through its web-based Bond Store (www.bondstore.com) and auction platforms. In addition, clients can invest in stocks, mutual funds, and exchange-traded funds online or through a Zions Direct financial representative.


About BondDesk Group LLC

BondDesk Group LLC is a financial technology firm, providing enterprise-wide fixed income solutions to many of the top broker-dealers in North America. The BondDesk Alternative Trading System (ATS), run by BondDesk Trading LLC, connects broker-dealers through a centralized marketplace by offering a diverse pool of liquidity for odd-lot fixed income securities in multiple asset classes. The BondDesk ATS executes over 20,000 transactions per day by providing 2,000 broker-dealers access to 35,000 live and executable offerings from over 100 premier fixed income dealers. In addition, BondDesk Group is a leading provider of innovative fixed income wealth management solutions, advisor workstations and fixed income analytical tools and applications.


Market Snapshot Information Disclaimer

MSRB and TRACE bond trade data displayed as weighted average yield. Municipal bond information from MSRB as of January 7, 2011. 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 January 7, 2011.

Corporate bond information from FINRA’s Trade Reporting and Compliance Engine (TRACE) as of January 7, 2011. 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.

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 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.

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.