Comprehensive Fixed Income Trading Technologies
Fixed income securities or bonds provide a steady stream of payments leading to much more stable returns. Compared to investment in equity, investing in bonds assures an investor of having cash to meet predictable expenses such as college expenses or retirement.
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Total Annual Returns: 1989-2008

Bond vs. Equity

IndexAverageVolatilityLowestHighest
BondBarclays Capital U.S. Aggregate Bond Index*7.6%5.3%-2.9%18.5%
EquityS&P 500 Index10.4%20%-37%37.6%

* The Barclays Capital U.S. Aggregate Bond Index is a broad-based bond index comprised of government, corporate, mortgage and asset-backed issues rated investment grade or higher.

Data Sources:

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Total Annualized Returns: 2003-2008

Bond vs. Equity

IndexAnnualized Retrun
BondBarclays Capital U.S. Aggregate Bond Index*7.6%
EquityS&P 500 Index10.4%

* The Barclays Capital U.S. Aggregate Bond Index is a broad-based bond index comprised of government, corporate, mortgage and asset-backed issues rated investment grade or higher.

Data Sources:

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Total Annualized Returns: 1998-2008

Bond vs. Equity

IndexAnnualized Retrun
BondBarclays Capital U.S. Aggregate Bond Index*5.6%
EquityS&P 500 Index-1.4%

* The Barclays Capital U.S. Aggregate Bond Index is a broad-based bond index comprised of government, corporate, mortgage and asset-backed issues rated investment grade or higher.

Data Sources:

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Total Annual Returns: 1988-2008

Bond vs. Equity

IndexAnnualized Retrun
BondBarclays Capital U.S. Aggregate Bond Index*7.4%
EquityS&P 500 Index8.4%

* The Barclays Capital U.S. Aggregate Bond Index is a broad-based bond index comprised of government, corporate, mortgage and asset-backed issues rated investment grade or higher.

Data Sources:

Retail investors make most of trades in fixed income markets:


Trades by Transaction Size in US Fixed Income Market


Q1 2009

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Yet most publicly available data reflects trades by institutional investors who pay a lower transaction cost for investment in bonds. BondDesk research has used all reported trades by bond broker-dealer in the U.S. municipal and corporate bond markets to estimate the true transaction costs realized by investors buying or selling "small" lots - under 100 bonds, i.e., with face value of under $100,000. By comparing the same-day yields (or yield spreads) for large and small trades, we have determined the distribution of costs faced by retail investors. While our findings certainly bear out the belief that institutional investors trading in large lots receive better pricing, we also find that the costs faced in smaller trades are not prohibitive(, and indeed appear quite favorable when compared to typical mutual fund fees).

Measuring transaction cost as deviation from a Mid-Market value which is estimated based on large same-day transactions (and using all reported trasactions in TRACE during Q1 2009), we find that retail investors (on average) pay 0.28% more in yield for buying corporate bonds compared to institutional investors. A similar analysis (using MSRB data and focusing on very liquid municiapl bonds) indicates that retail investors (on average) pay 0.19% more in yield for buying municipal bonds compared to institutional investors
Source: BondDesk Group Research



All Assets

Yield (in %)0-6M6-12M1-2Y2-5Y5-10Y10Y+
Treasury0.070.330.771.161.752.64
CD0.400.912.253.103.754.50
Agency0.100.610.962.183.824.76
Muni--1.812.573.584.90
Corp--5.065.376.366.89

The rates above reflect median yields on BondDesk ATS and as reported to TRACE and MSRB during the most recent trading day. Yields are based on investors purchases only and include commissions and/or mark ups. For reported trades in TRACE/MSRB, we only consider transactions in less than 100 bonds. Yields are yield-to-worst and may reflect yield-to-maturity, yield-to-worst-call, or yield to mandatory put. Cells with missing data indicate groups with inadequate data points to generate meaningful median yields.




Muni

Yield (in %)1-2Y2-5Y5-10Y10Y+
AAA2.961.903.004.83
AA1.502.253.254.64
A0.962.183.824.76
BBB1.812.573.584.90

The rates above reflect median yields on BondDesk ATS and as reported to TRACE and MSRB during the most recent trading day. Yields are based on investors purchases only and include commissions and/or mark ups. For reported trades in TRACE/MSRB, we only consider transactions in less than 100 bonds. Yields are yield-to-worst and may reflect yield-to-maturity, yield-to-worst-call, or yield to mandatory put. Cells with missing data indicate groups with inadequate data points to generate meaningful median yields.




All Corp

Yield (in %)1-2Y2-5Y5-10Y10Y+
AAA-1.734.014.75
AA3.384.905.997.46
A4.985.196.096.42
BBB4.985.196.096.42

Financial

Yield (in %)1-2Y2-5Y5-10Y10Y+
AAA-1.73--
AA3.474.946.988.55
A5.105.396.557.68
BBB9.506.879.079.71

Non-Financial

Yield (in %)1-2Y2-5Y5-10Y10Y+
AAA--4.014.75
AA1.913.175.695.60
A3.873.965.286.25
BBB4.945.966.527.65




Most Active Corp Issuers

IssuerRatingMedian PriceMedian Yield
1GENERAL ELECTRIC CAPITAL CORPAA99.475.07
2WELLS FARGO & CO NEWA97.605.24
3GOLDMAN SACHS GROUP INCA98.055.65
4JPMORGAN CHASE & COA99.546.09
5BANK OF AMERICA CORPORATIONA99.296.74
6VERIZON COMMUNICATIONS INCA104.115.40
7WACHOVIA CORP NEWA89.807.58
8AMERICAN EXPRESS COBBB96.986.31
9COCA-COLA ENTERPRISESA102.683.73
10CATERPILLAR FINL SVCS MTNS BEA103.705.23
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