Bonds of Travelers (TRV) and Proctor and Gamble Lead BBBI Too Biggest Loss Ever

February 29th, 2012 by

The Big Bad Bond Index (BBBI), which tracks high grade corporate bonds, fell  5 points closing at  1,1547.28.  This means the average bond in the index was trading at $1,147.28, a drop of 0.5%. Twenty five bonds ended lower and five higher. The average yield rose to 2.24%.

The biggest loser of  the day was Travelers (TRV) 6.25% coupon bond maturing 6/2037 which lost over  $25 per $1000 face value bond. Traveler’s stock ended the day down ¾% as the financial stocks suffered in general. Other large losers included bonds from Proctor and Gamble (PG) and Pfizer (PFE)

In a day that did not see many winners, gains where they could be found were small. For example, the GE 5.25% coupon bond maturing 12/2017 gained $5. As GE bonds have been beaten up, maybe this represents some opportunistic buying.

The 2, 5, 10, and 30 year Treasuries all slightly fell in price . .very slight with the biggest change occurring in the 10 year bond with ended the day yielding 1.97%, up 0.03%. In other words, the BBBI and the treasury market again moved in the same direction.

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