Yield and Income Newsletter Targets Current Wall Street Research Firm Opinions, Recommendations for Fixed Income and Securities

(PRWEB) May 16, 2007

The May issue of Yield and Income Newsletter monitors the current opinions and recommendations of Wall Street research firms income-generating sectors, such as REITs, energy-related Master Limited Partnerships, preferred stocks, closed-end funds, and corporate bonds, municipal bonds, and US Treasury and Agency bonds.

This month, the global strategies for equities and fixed income include a global fund manager survey by Merrill Lynch which states that global fund managers have a gloomy outlook for corporate earnings. The survey found that while most fund managers are confident that there will be no global recession, prospects for corporate profits are foundering. A net 38% of respondents expect corporate profits to deteriorate over the next 12 months and a net 46% believe it unlikely corporations will grow their profits by 10% or more over the same timeframe. Even so, investors believe equities are fairly-valued and that companies are underleveraged, the survey added.

“Pressure on companies to return cash to shareholders appears strong enough to justify a pro-equity stance,” says David Bowers, independent consultant to Merrill Lynch, in a press release. “This could come from re-leveraging company balance sheets via share buy backs or company buy-outs. However this strategy might struggle in the event of an unexpected rise in credit spreads and higher borrowing costs.”

According to the survey, UBS’ fixed income strategy recommends a defensive stance on corporate credit risk in fixed income portfolios, noting that valuations appear excessively high. Overall the firm remains neutral to underweight in US Treasuries, TIPS, Agencies, preferred stocks, and investment grade and high yield corporate bonds. Citigroup sees value in certain sectors of municipal bonds.

As for REITs, UBS is currently overweight the Mall, Industrial, and Healthcare sectors. BRE Properties (BRE), AMB Property (AMB), Nationwide Health Properties (NHP) and Healthcare REIT (HCN) all look attractive. Banc of America and Credit Suisse also have select BUYs among REITs.

The survey concluded utility stocks look favorable to Banc of America and Citigroup, several being PG&E (PCG), Allegheny Energy Inc. (AYE), Pepco (POM), Constellation (CEG), and PSEG (PEG).

In the energy MLP sector, Credit Suisse says “trends can be spotted that will require infrastructure build out, and based on current ownership of assets, we should be able to surmise a short list of potential MLPs that could benefit from a new project.” It picks four winners.

Closed-end fund coverage is initiated this month in the newsletter, and five leveraged municipal bond funds and a recommendation to swap out of high-yield funds and into one preferred and convertible income fund are included.

About Yield and Income Newsletter

Yield and Income Newsletter is available as a single issue, annual subscription, or as part of a PreferredsOnline subscription. The newsletter is published by BondsOnline Group, Inc., the owner and publisher of a series of websites that provide tools for investors seeking income: BondsOnline.com is the leading portal for US bond market information and education; BondsOnlineQuotes.com provides current and historical pricing data for over 3.5 million global stocks and bonds; PreferredsOnline provides continually updated databases for, and research into, preferred stocks, REITs, MLPs, and Canadian Royalty Income Trusts.

###

©Copyright 1997-

, Vocus PRW Holdings, LLC.
Vocus, PRWeb, and Publicity Wire are trademarks or registered trademarks of Vocus, Inc. or Vocus PRW Holdings, LLC.

Incoming search terms for the article:

• high yield bond newsletters recommendation
• income stocks

i saw recently in tv that zimbabwe inflation surged to about 1200%. then i read in an article that zimbabwe bonds are high yielding. isnt that in the lending business, the higher the risk of lender, the higher the yield? so thus this mean that lending money to zimbabwe (by buying bonds) have high returns because of the great risk an iinvestor’s money will be exposed? so can anyone give me an approximation of the current yield? tnx, im a business student

Incoming search terms for the article:

• zimbabwe corporate bonds
• yield on zimbabwe bonds
• zimbabwe bonds
• zimbabwe bonds and yield
• zimbabwe bonds yield
• zimbabwe bonds yielding
• zimbabwe yield bonds

Being Street Smart

Sy Harding

At Least Be Aware Of The Current Risk In Bonds! August 24, 2010.

Money continues to pour into bonds at a ferocious pace, with investors confident they are a safe and conservative holding in the midst of all the economic and stock market uncertainty.

With last week’s further rally, the 30-year Treasury bond had its biggest weekly gain in price since May, pushing their yield down to just 3.66%. The yield on 10-year Treasury notes was pushed down to 2.61%, while the yield on two-year notes fell to 0.496%.

The newly found confidence in bonds is in several ways reminiscent of the tech stock bubble in 1999, and the ease with which new issues of tech stocks were being eagerly swept up by investors convinced they could only go higher, finding all kinds of reasons not to believe warnings that they were in a bubble.

Corporations are currently scrambling to issue new supplies of bonds as fast as tech companies brought new stock IPO’s to market in 1999.

IBM recently had no trouble raising $1.5 billion by issuing three-year bonds that pay a record low 1% interest. That is, the bonds sold at 100 times their yield. It’s worth noting that IBM has an impressive record, going back to at least 1979, of timing its bond sales, most often selling at very low yields when investors were piling into them, and just before yields began to rise. Jack Albin, chief investment officer at Harris Private Bank says, “I don’t know how they’ve done it over the years, but it’s remarkable.”

With bond investors scrambling for most any issue the market tosses in front of them, Wall Street is now even considering the possibility of some companies being able to successfully  issue 100-year bonds, bonds that would mature in 2110, long after the buyers have passed away. It’s been done a few times in the past, by IBM, Disney, Coca-Cola, Ford Motors, Federal Express, and a few others.

Imagine the temptation of being able to borrow large amounts of capital from investors at very low interest rates, with the loan not coming due for 100 years. It takes a buyer with a special need, or lacking in understanding of why they’re being offered a yield higher than on 30-year bonds, and unusual conditions in the bond market. Obviously, Wall Street believes the unusual conditions are present.

Fueling the bond frenzy is not just the determination to find a safe haven that at least pays something more than the 0% of money markets, but the popular opinion that bonds will continue to rally as a safe haven as long as the economy appears to be softening, and as long as the stock market correction continues.

Be aware that is not a given, or even evidenced by recent history.

As the following charts show, the big spike-up in bonds at the end of 2008, which was also fueled by economic worries and a declining stock market, ended on December 18, 2008, even as worries about the economy worsened further, and almost three months before the stock market ended its severe 2007-2009 bear market (on March 10, 2009).

<!– >

And are bonds conservative and safe? As the top chart shows bonds are often as volatile as stocks. Holding through their declines can often be as painful as holding through a stock market decline.

So the bubble rally in bonds may continue, but investors still piling into them need to be more aware of the risks than they appear to be, and aware that timing the bond market is almost as important as timing the stock market.

Sy Harding is editor of the Street Smart Report, and the free daily market blog, www.streetsmartpost.com.

The Indian Equity Markets remained subdued throughout the week with indices losing by nearly 5% over the week (June 1st week). The selling pressure from FIIs& NRIs – non resident Indians was seen in heavyweight stocks. At the same time some consolidation was also seen in some selective stocks across the bombay and national stock exchange indexes like the nifty and sensex.

The week started with the important support levels of 16000/4750 getting breached. As mentioned in our previous equity report, the Indian markets saw massive sell-off after this development. The indices reached near the next target support level of 4500. Though markets have fallen sharply there are no clear indication of bottoming out and further downside cannot be ruled out. We feel the next important support level is seen at 14700/4280. But before that big investors like person of india origin and overseas citizen of india can start investing in small quantity in selective stocks, they have to really time the market really well, and they need to diversify their investments between mutual funds and stocks. The support for the week is seen near 15100/4475 while the resistance for the week is seen near 16100/4800. In high volatility this band can stretch further to 14900/4400 and 16400/4850.

We advise our clients to invest in indian stock markets with caution and with a long term view with a portfolio diversification view across various financial products like: stocks, mutual funds, commodities and futures.

Source: http://www.nriinvestindia.com/

NriInvestIndia.com is an emerging NRI, PIO and OCI focused Investment Broker & Mutual fund distributor company from India, offering NRI Services to do Investment in India. Our goal is to guide Non Resident Indians to Trade in Indian Stock Market & Invest in top Mutual Funds of India.

Incoming search terms for the article:

• current indian market scenario 2010
• current scenario of indian stock market
• current market scenario in india 2010
• current indian market scenario
• is costly to invest in indian share market as nri
• present scenario of stock market
• Current scenario of the Indian stock market
• scenario of indian financial market
• senario of indian financial market
• current market scenario

What can the Federal Reserve really do to effect the current mortgage rate?

Not as much as you think. Everyone gets excited when they hear something about the Fed lowering interest rates. They automatically think that means current mortgage rates are immediately going lower too.

A mortgage interest rate is not the same thing as the Fed rate. Other names for the Fed rate are short term rates, prime, Fed funds rate. This interest rate is the one tied to your car loans, credit cards, and home equity lines of credit. Even though a home equity line of credit is considered a mortgage, it is amortized like a credit card. That is the only mortgage affected by the Fed funds rate or Prime.

Mortgage rates are not directly but indirectly affected by the Fed moving rates. When the Fed makes a rate move it is felt by the investors. Some of these folks invest in mortgage backed securities. It is the mortgage backed securities that move mortgage rates up or down.

The Fed makes rate decisions on what is happening in the market. The unemployment number, consumer confidence, consumer price index, etc. are just some of the economic indicators the powers that be use to decide if a rate move is needed.

These same indicators are what affect the mortgage backed securities which in turn affect mortgage rates. Every day the market is analyzed using the economic indicators and a rate is established for the mortgage backed securities.

This happens every day whether the Fed is doing his thing or not. A good way to gauge where the market is for mortgage rates is by watching the 10 year bond. When there is bad news for an economic indicator then that means good news for the mortgage market.

Investors get nervous when a bad indicator shows up and they take their money out of the stock market where they feel their money may be at risk and put it into a safer place like the 10 year bond. When money floods into the 10 year bond it drives the price up but the yield down. When the yield is down then current mortgage rates go down.

When there are good indicators and news the investors take money out of the 10 year bond and put it back into the stock market. They can make a better rate of return in the stock market then in the 10 year bond. When they feel safe that the economy is rebounding then the stock market is the place to be. The 10 year bond price goes down and the yield goes up so the rates go up.

If you want to track current mortgage rates because you are thinking of buying or refinancing then do not listen to everyone else and certainly do not listen to the Fed. Check out a financial website and track the 10 year bond.

Remember, when the yield is up then mortgage rates are up and when it is down then they are down. Rates move every day and sometimes if good or bad enough news comes in during the day, they can change in that same day.

Incoming search terms for the article:

• effect of government buying bonds
• how does the fed buying bonds lower interest rates
• impact of government buying bonds
• effect of fed buying bonds
• how will fed buying bonds affect mortgage rates
• how does buying bonds lower interest rates
• effect of government buying treasuries
• mortgage rates fed buys bonds
• what date did the fed put money into the stock market
• what happens to mortgage rates when the fed buys bonds

A year or two ago you could get investment based on a good idea.  Not surprisingly, these market conditions are probably unlikely to return, (at least in the short-term).  To get investor’s interest you must have existing orders or contracts.

For small scale investments, you may need to re-structure investment to smaller packages.  In today’s market, investors think twice about signing six-figure cheques, however there is still opportunity in areas of around $30,000-50,000 per investor.  As current Australian Security and Investment Commission (ASIC) laws allow you to subscribe to 10 investors per annum, this could be as much as $500,000.

Entrepreneurs must also learn “investor-speak”.  Learn how to think like an investor and what investors want.  People think that investors invest in good ideas, but the reality is investors invest in “good markets”, that are growing and have massive opportunities, such as Green technology or Cleantech industries.

Finally, focus on your exit strategy.  How will investors realise their investment opportunity?  Once you start thinking like an investor, the fundamental questions you need to be able to answer are:

1.    How much do I want?
2.    What am I going to do with the money?
3.    How have I validated my assumptions?
4.    How well do I understand the industry?
5.    How will I mitigate my risks and how believable am I?
6.    How well can I sell my proposal?
7.    How am I going to give it back (exit strategy)?
8.    When am I going to give the money back?
9.    How much will I give back to the investor?
10.    Am I realistically capable of doing it- what experience do I have and who can I bring on-board if I do not have any experience?

Incoming search terms for the article:

• private equity market conditions
• private equity current condition

Or the yield of a corporate bond with the same rating?

Incoming search terms for the article:

• corporate bonds market fid

Equity markets in Asia are trading on weak momentum, followed by European and US markets’ hardly managed position just above the break-even point. The electronic makers have been the biggest gainer in Asian markets. It seems that global economy is going towards betterment. This is the fourth consecutive day of advancement helped by the small gains of last day. Australian economy expanded by 0.4% in the first quarter, which resulted in additional positive momentum during the Asian session. Australian economy is the only economy that grows in the first quarter of the year.

On Tuesday, every industrial sector of the United State’s equity market saw limited movement after the announcement of the U.S. President Mr. Obama to re organize the healthcare industry, which made the health care industry the only industry which grew in the United States.

As soon as JP Morgan and American Express hit the equity market for additional cash, this resulted in the biggest declines of the financial market on Tuesday. American Express fell by 4.9%, sold $500 million in new shares, while JP Morgan lost 4.5% after it sold $5 billion worth of new shares. It is expected that other banks will also be forced to do the same and raise money from the equity markets to meet the targets, which might reduce the current shareholder’s percentage.

The rise in pending home sales has reached its peak of seven years, which resulted in huge decline in real estate sector. It is expected to be worsening in future. Prices continue to fall, unemployment is rising, and the recessionary period is sufficient to put pressure on financial institutions.

Institutions are having difficulties to build momentum because traders are fast enough to take any available short term gains they have earned in equity market, and this situation is expected to be worsening in immediate future.

Incoming search terms for the article:

• current situation of bond in the market
• bond market situation

not bad

What does this mean ? :

Floating/Variable Coupon – Monthly Reset,CPN RATE=((CPI1-CPI12)/CPI12))+162BP)INTL CPN=5.14% MIN CPN=0%

Incoming search terms for the article:

• cpi1 - cpi12
• what means cpn in bonds