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Tuesday, September 18, 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 |
| 9/11/18 | 2.02 | 2.15 | 2.31 | 2.55 | 2.76 | 2.83 | 2.87 | 2.94 | 2.98 | 3.06 | 3.13 |
| 9/12/18 | 2.01 | 2.16 | 2.33 | 2.56 | 2.74 | 2.82 | 2.87 | 2.93 | 2.97 | 3.04 | 3.11 |
| 9/13/18 | 2.01 | 2.15 | 2.33 | 2.55 | 2.76 | 2.83 | 2.87 | 2.93 | 2.97 | 3.04 | 3.11 |
| 9/14/18 | 2.02 | 2.16 | 2.33 | 2.56 | 2.78 | 2.85 | 2.90 | 2.96 | 2.99 | 3.07 | 3.13 |
| 9/17/18 | 2.02 | 2.16 | 2.35 | 2.57 | 2.78 | 2.85 | 2.89 | 2.96 | 2.99 | 3.07 | 3.13 |
Source: U.S. Department of the Treasury, as of 09/17/2018
Non-rated Oklahoma Taxable Municipals:
The Diamond in the Rough
The Diamond in the Rough
When investing there are a number of decisions to make in terms of the appropriate bond type; maturity; marketability or liquidity, along with a number of other questions that will meet the investor’s objectives, while keeping within the policy guidelines or risk tolerance. Once these decisions are made, the universe of bonds has likely been narrowed down to a selection of a few appropriate candidates to be compared to ensure the highest return for the least amount of risk.
Often, municipal bonds further out on the curve will be chosen for the added yield commensurate with the risk. However, we suggest looking at municipal bonds on the shorter end. Though many of the bonds will not likely yield more than tradable Certificate of Deposits (CDs), there are municipal bonds that provide a pick up to U.S. Treasuries if non-rated municipal bonds are allowed in the portfolio.
Oklahoma issues a number of taxable Oklahoma rated municipal bonds that are not rated by a major agency. However, in the short end, these deals are often a diamond in the rough in terms of quality and added yield in the short end.
Yesterday, Country Club Bank Capital Markets Group won a $1.14mm Grady County ISD #68 taxable in two maturities 2020 and 2021 that yield 3.10% and 3.20%, respectively. Compare this to UST 2yr and UST 3yr notes that are yielding 2.79% and 2.86%, and CDs yielding 2.75% and 3.00%. The non-rated Oklahoma are super attractive for buy and hold investors, so it is no surprise that they were gobbled up quickly by those that are in the know and willing to invest in bonds that are non-rated by a major rating agency.
Be on the lookout for new issue “non-rated” taxable Oklahoma deals. It might be the added yield for less risk that would fit perfectly in your portfolio. Ask us about the Canadian County ISD #27, taxable Oklahoma deal today.
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