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Tuesday, April 24, 2018 |
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MANAGING DIRECTOR: |
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US Treasury Market |
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| Date | 1 mo | 3 mo | 6 mo | 1 yr | 2 yr | 3 yr | 5 yr | 7 yr | 10 yr | 20 yr | 30 yr |
| 4/17/18 | 1.68 | 1.80 | 2.02 | 2.16 | 2.41 | 2.52 | 2.68 | 2.77 | 2.82 | 2.89 | 3.00 |
| 4/18/18 | 1.67 | 1.81 | 2.01 | 2.17 | 2.42 | 2.57 | 2.73 | 2.83 | 2.87 | 2.95 | 3.06 |
| 4/19/18 | 1.67 | 1.82 | 2.01 | 2.21 | 2.44 | 2.58 | 2.77 | 2.87 | 2.92 | 3.01 | 3.11 |
| 4/20/18 | 1.65 | 1.81 | 2.01 | 2.22 | 2.46 | 2.62 | 2.80 | 2.91 | 2.96 | 3.04 | 3.14 |
| 4/23/18 | 1.69 | 1.87 | 2.04 | 2.25 | 2.49 | 2.64 | 2.83 | 2.94 | 2.98 | 3.05 | 3.15 |
Source: U.S. Department of the Treasury, as of 4/23/18
Playing the Taxable Municipal Market
Taxable municipal bonds are an attractive alternative to other fixed income securities as they can offer additional yield. Often you can buy a bond issued in your state or local area, where you know and understand the credit. Depending on the issuer, many taxable municipals carry an exemption from state taxes as well.
Case in point:
Payne County, Oklahoma
Independent School District #67
Cushing Schools
Unlimited Tax General Obligation
Coupon 3.05%
Maturity 6/1/2020
Non-callable
Yield to Maturity is 2.85%
Dollar price is 100.381
Oklahoma Rating is #1
Source of Payment is county-wide ad valorem property tax
Taxable Federal and Exempt from State Tax
This bond settles 6/7/18
Cushing Oklahoma is known as the pipeline crossroads of the world. The crude oil tanks around Cushing have approximately 85 million barrels of storage capacity; all of which pay ad valorem property tax.
We own and offer $1,020,000 Par Value to settle on 6/7/18
With a 2 year maturity and a spread to treasuries of approximately 40 basis points, taxable municipal bonds can offer diversification and additional yield to any portfolio.
Taxable municipal bonds are an attractive alternative to other fixed income securities as they can offer additional yield. Often you can buy a bond issued in your state or local area, where you know and understand the credit. Depending on the issuer, many taxable municipals carry an exemption from state taxes as well.
Case in point:
Payne County, Oklahoma
Independent School District #67
Cushing Schools
Unlimited Tax General Obligation
Coupon 3.05%
Maturity 6/1/2020
Non-callable
Yield to Maturity is 2.85%
Dollar price is 100.381
Oklahoma Rating is #1
Source of Payment is county-wide ad valorem property tax
Taxable Federal and Exempt from State Tax
This bond settles 6/7/18
Cushing Oklahoma is known as the pipeline crossroads of the world. The crude oil tanks around Cushing have approximately 85 million barrels of storage capacity; all of which pay ad valorem property tax.
We own and offer $1,020,000 Par Value to settle on 6/7/18
With a 2 year maturity and a spread to treasuries of approximately 40 basis points, taxable municipal bonds can offer diversification and additional yield to any portfolio.
Source: Bloomberg
This information is intended for institutional investors only. The material provided in this document/presentation is for informational purposes only and is intended solely for private use. Past performance is not indicative of future results. This material is not intended as an offer or solicitation for the purchase or sale of any financial instruments.
•Not FDIC Insured •No Bank Guarantee •May Lose Value