The SPDR Barclays Capital Short Term Corporate Bond ETF ( SCPB) seeks to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of the Barclays Capital U.S. 1-3 Year Corporate Bond Index.
Shares of JNK have a positive edge in the short-term of just over three quarters of a percent, significantly higher than its rival, high yield bond ETF, the iBoxx High Yield Corporate Bond Fund (NYSE: HYG).
This year through the end of October, the SPDR Barclays Capital High Yield Bond ETF (JNK) and the iShares iBoxx High Yield Corporate Bond (HYG) are up 12.6% and 10.1%, respectively.
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Either way--with a swap or a margined bond trade--you pocket the spread, unless and until the corporate bond gets into trouble, at which point you're sitting on a painful capital loss.
Muni defaults a term meaning that the bond stops paying its coupon interest occur much less than defaults in the corporate bond market.
As of Thursday, a 5 year AAA corporate bond has an interest rate of 1.21% and a 5 year AAA muni bond has an interest rate of 0.93%.
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Another reason demand for the long bond has been so voracious is that a lot of investment banks still use them to hedge their corporate-bond positions and interest-rate swaps (between fixed- and floating-rate obligations).
For one thing, given how low government-bond yields and corporate credit spreads have fallen, the time of plenty in the bond market may have passed.
Investors poured money into commodity strategies, corporate bond strategies, and Asia focused funds.
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What's more, raising the money through a corporate bond sale gives Apple a tax benefit.
But it should create opportunities in the high grade corporate bond market in the meantime.
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This is far above the 3.32% yield for the Dow Jones Corporate Bond Index.
That's because selling a credit swap is equivalent to buying the corporate bond on margin.
Another option for traders is the PowerShares High Yield Corporate Bond Portfolio ETF (NYSE: PHB).
For a top-bracket taxpayer, that was equivalent to as much as 12% on a corporate bond.
International flows of capital are not about to vanish corporate bond markets had a bouncy January, for example.
In practice, plans use a rate based on high-quality long-term corporate bond yields, currently just above 6%.
Problems occur with corporate bond ETFs in a fast-moving market because the arbitrage mechanism starts breaking down.
The rise in TSF was driven by increases in bank loans, corporate bond issuance, and trust loans.
My coverage ranges from the municipal and corporate bond markets to options trading in the stock market.
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But a potential problem looms in Sallie's books, says Kathleen Shanley of corporate bond research firm Gimme Credit.
Conceptually this is no different from putting your cash into a corporate bond fund, even an equity one.
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Over the last year, the Lehman Brothers U.S. credit index, a widely followed barometer of corporate bond performance, is up 8.2%.
Municipal and corporate bond defaults are rising but this could spell opportunity for huge profits by bold investors.
In a liquid market, corporate bond ETF market prices are held close to their NAVs by an arbitrage mechanism.
Customers can access Interactive Brokers corporate bond offering through their Trader Workstation platform.
Morgan Stanley estimates slightly less corporate bond issuance than in 2012, but doesn't give a forecast for government debt.
As the 2006 law continues to phase in, the higher blended corporate bond rate is causing significant reductions in lump-sum pension values.
Money market rates near zero and corporate bond buyers starving for yield make financing easier and cheaper than ever before.
Italian and Spanish national debt sells to yield over 5 percent which is what a BB corporate bond yields here.
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