SALT LAKE CITY, Sept. 19, 2012 /PRNewswire/ --Zions Direct, the online broker-dealer that allows its customers to purchase corporate bonds in its daily web-based auctions, announces its weekly auction results. Since 2006, Zions Direct has auctioned over $1.9 billion in more than 6,000 fixed-income auctions.
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In auctions closed from September 10, 2012 to September 14, 2012, investors purchasing corporate bonds in the auctions received average taxable yields 0.47 percentage points, or 47 basis points, higher than comparable bonds reported in FINRA's Trade Reporting and Compliance Engine (TRACE).
Corporate Bond Auction Comparison Data (auction data from auctions.zionsdirect.com)
Issuer | Term | Rating | Auction Yield | TRACE | Difference |
Avg Yield | (basis points) | ||||
General Dynamics Corp | 8 Month | A | 0.62% | 0.34% | 28 |
Citigroup Fndg Inc., (FDIC Ins) | 1 Month | AA | 0.76% | 0.25% | 51 |
Hewlett-Packard Co | 6 Month | BBB | 0.89% | 0.64% | 25 |
IBM Corp | 3 Month | AA | 0.80% | 0.25% | 55 |
Bank Of New York Mellon | 2 Month | A | 0.85% | 0.34% | 51 |
Boeing Company | 2 Month | A | 0.74% | 0.34% | 40 |
E.I. Du Pont de Nemours | 6 Month | A | 0.72% | 0.34% | 38 |
McDonald's Corporation | 9 Month | A | 0.65% | 0.34% | 31 |
Coca-Cola Refreshments USA | 11 Month | A | 0.85% | 0.58% | 27 |
Bottling Group LLC / Pepsi BG | 2 Month | A | 0.90% | 0.34% | 56 |
Bank of America Corp | 4 Month | BBB | 1.22% | 0.64% | 58 |
Baxter International Inc | 6 Month | A | 0.73% | 0.34% | 39 |
Walgreen Co | 10 Month | BBB | 1.43% | 1.04% | 39 |
BP Capital Markets PLC | 14 Month | A | 1.42% | 0.58% | 84 |
Bank Of New York Mellon | 1 Month | A | 0.99% | 0.34% | 65 |
Target Corp | 4 Month | A | 0.70% | 0.34% | 36 |
ConocoPhillips | 7 Month | A | 0.61% | 0.34% | 27 |
Home Depot Inc | 15 Month | A | 0.81% | 0.58% | 23 |
Bank of America Corp | 11 Month | BBB | 1.40% | 1.04% | 36 |
Praxair Inc | 2 Month | A | 0.89% | 0.34% | 55 |
United Parcel Service | 4 Month | AA | 0.90% | 0.25% | 65 |
Wal-Mart Stores Inc | 7 Month | AA | 0.89% | 0.25% | 64 |
Target Corp | 9 Month | A | 1.05% | 0.58% | 47 |
Goldman Sachs Group Inc | 16 Month | A | 1.45% | 0.58% | 87 |
Average Difference | 47 |
Zions Direct, 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.
ZIONS DIRECT / BONDDESK® MARKET SNAPSHOT
Corporate Bonds' Average Yields Trade Data* (source: FINRA's TRACE)
2012 - 2013 | 2013 | 2014 | 2015 | 2017 | 2019 | 2022 | |
Rating | <9mo | 1 yr | 2 yr | 3 yr | 5 yr | 7 yr | 10 yr |
AAA | 0.22% | 0.14% | 0.31% | 0.44% | 1.33% | 1.66% | 1.97% |
AA | 0.25% | 0.41% | 0.62% | 0.82% | 1.43% | 2.34% | 2.93% |
A | 0.34% | 0.58% | 0.85% | 1.35% | 1.59% | 2.63% | 2.92% |
BBB | 0.64% | 1.04% | 1.60% | 2.35% | 2.81% | 3.95% | 4.02% |
*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.
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.
For more information about Zions Direct and to sign up to receive the free weekly e-newsletter, visit zionsdirect.com. This and past Market Snapshots can be found at think.zionsdirect.com.
Market Snapshot Information Disclaimer
TRACE bond trade data displayed as weighted average yield. Corporate bond information from FINRA's Trade Reporting and Compliance Engine (TRACE) as of September 14, 2012. 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. Auction information from auctions.zionsdirect.com as of September 14, 2012. 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. Any specific weekly results may be heavily influenced by large, atypical volatility, trade volume, or other unusual investing events.
Investment products and services offered through Zions Direct, member of FINRA/SIPC.
Investment Products: Not FDIC Insured- No Bank Guarantee - May Lose Value
Zions Direct is a wholly owned non-bank subsidiary of Zions Bank.
SOURCE Zions Direct
