Thursday, March 5, 2020 |
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| MANAGING DIRECTOR: Scott Carrithers PORTFOLIO SALES AND SERVICE: Steve Panknin • George Morris • Jeff Goble • Chris Thompson • Sean Doherty Kevin Doyle • Lonnie Harris • Mark Tranckino • Robert Schuyler • Tom Toburen • Josh Kiefer Nicole Burczyk • Kelley Frye • Natalie Regan • Aaron Stoffer • Chuck Honeywell |
| US Treasury Market | |||||||||||
| Date | 1 mo | 3 mo | 6 mo | 1 yr | 2 yr | 3 yr | 5 yr | 7 yr | 10 yr | 20 yr | 30 yr |
| 02/27/20 | 1.56 | 1.45 | 1.33 | 1.18 | 1.11 | 1.08 | 1.11 | 1.22 | 1.30 | 1.61 | 1.79 |
| 02/28/20 | 1.45 | 1.27 | 1.11 | 0.97 | 0.86 | 0.85 | 0.89 | 1.03 | 1.13 | 1.46 | 1.65 |
| 03/02/20 | 1.41 | 1.13 | 0.95 | 0.89 | 0.84 | 0.85 | 0.88 | 1.01 | 1.10 | 1.46 | 1.66 |
| 03/03/20 | 1.11 | 0.95 | 0.83 | 0.73 | 0.71 | 0.72 | 0.77 | 0.91 | 1.02 | 1.44 | 1.64 |
| 03/04/20 | 1.00 | 0.72 | 0.68 | 0.59 | 0.67 | 0.68 | 0.750 | 0.90 | 1.02 | 1.45 | 1.67 |
Short Muni’s Still Showing Big Spreads
As the Coronavirus continues to dominate the headlines with key states looking to make big plans for possible shutdowns to public systems, the market has continued to rally even further. It doesn’t appear there will be a slowdown on this front in the near term. As this news pushes yields to new lows in several benchmarks along the curve, new purchases for investors with excess cash should look to shorter maturities, limiting risk with the unknown of when our market will normalize.
Municipals in the short end of the curve prove to be the best value from a spread to treasuries standpoint. Tax free municipals are offered in the new issue and secondary market at +50bps+ TEY for C-Corp, +70bps+ TEY for Sub S. Taxable muni’s priced to calls within seven years are available at +70bps+ to USTN.
A sampling of a high quality municipal with even greater spreads is shown below. Call us for more information or more offerings of the like if you have interest.
Municipals in the short end of the curve prove to be the best value from a spread to treasuries standpoint. Tax free municipals are offered in the new issue and secondary market at +50bps+ TEY for C-Corp, +70bps+ TEY for Sub S. Taxable muni’s priced to calls within seven years are available at +70bps+ to USTN.
A sampling of a high quality municipal with even greater spreads is shown below. Call us for more information or more offerings of the like if you have interest.
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