Think

Zions Direct Announces Corporate Bond Auction Results

Russell Fisher — Wed, 22 Feb 2012 15:00:21 +0000

Auctions of Corporate Bonds for week ending February 17, 2012

SALT LAKE CITY – Zions Direct, the online broker-dealer that allows its customers to purchase corporate bonds in its daily web-based auctions, announces its weekly auction results. In auctions closed from February 13, 2012 to February 17, 2012, investors purchasing corporate bonds in the auctions received average taxable yields 0.27 percentage points, or 27 basis points, higher than comparable bonds reported in FINRA’s Trade Reporting and Compliance Engine (TRACE).

Zions Direct, in conjunction with BondDesk Group LLC, regularly publishes a Market Snapshot for investors to help understand the current bond market, summarizing current weighted-average yields of investment-grade municipal and corporate bonds. Findings are compared against similar securities auctioned at Zions Direct Auctions. Since February 2007, Zions Direct has auctioned over 1.1 billion dollars in more than 4,000 fixed-income auctions.

ZIONS DIRECT / BONDDESK® MARKET SNAPSHOT

Corporate Bonds’ Average Yields Trade Data (source: FINRA’s TRACE)

	2011 – 2012	2012	2013	2014	2016	2018	2021
Rating	<9mo	1 yr	2 yr	3 yr	5 yr	7 yr	10 yr
AAA	0.24%	0.38%	0.37%	0.82%	1.04%	2.32%	2.16%
AA	0.35%	0.53%	0.88%	1.28%	2.22%	2.99%	3.75%
A	0.64%	0.79%	1.41%	2.14%	2.47%	3.82%	3.94%
BBB	1.17%	1.41%	1.74%	2.61%	3.27%	4.08%	4.37%

Corporate Bond Auction Comparison Data (auction data from auctions.zionsdirect.com)

Issuer	Term	Rating	Auction Yield	TRACE	Difference
				Avg Yield	(basis points)
Morgan Stanley	1 Month	A	0.94%	0.64%	30
General Mills Inc	7 Month	BBB	0.99%	1.17%	-18
Caterpillar Fin Srvcs	1 Year	A	0.89%	0.79%	10
John Deere Capital Corp	14 Month	A	1.19%	0.79%	40
General Electric Cap (FDIC Ins)	1 Month	AA	1.01%	0.35%	66
JP Morgan / Bear Stearns Co	6 Month	A	0.90%	0.64%	26
Pepsico Inc	1 Year	A	0.79%	0.79%	00
Avon Products	15 Month	BBB	2.45%	1.41%	104
Wal-Mart Stores Inc	1 Month	AA	0.75%	0.35%	40
AT&T Inc	6 Month	A	0.79%	0.64%	15
ConocoPhillips	8 Month	A	0.85%	0.64%	21
Pfizer Inc / Wyeth	13 Month	A	0.80%	0.79%	01
General Electric Capital Corp	2 Month	AA	1.55%	0.35%	120
Procter & Gamble Co	5 Month	AA	0.88%	0.35%	53
Parker-Hannifin Corp	1 Year	A	1.19%	0.79%	40
Ryder System Inc	2 Year	BBB	2.30%	1.74%	56
Valero Energy Corp	2 Month	BBB	0.75%	1.17%	-42
Boeing Company	1 Year	A	0.99%	0.79%	20
Georgia Power Co.	19 Month	A	0.82%	1.41%	-60
Average Difference					27

For more information on Zions Direct and the BondDesk Market Snapshot go to zionsdirect.com to sign up to receive the free weekly newsletter or visit think.zionsdirect.com to view a Market Snapshot archive.

THE INFORMATION IN THE MARKET SNAPSHOT IS NOT INTENDED TO SERVE AS THE BASIS FOR INVESTMENT DECISIONS. PAST PERFORMANCE IS NOT AN INDICATION OF FUTURE RESULTS.

About Zions Direct

Zions Direct is a broker-dealer that specializes in offering securities for self-directed and fixed income-focused investors. Zions Direct allows retail investors to buy FDIC-insured certificates of deposit, corporate and municipal bonds, and other investment products through its web-based Bond Store and auction platforms. In addition, clients can invest in stocks, mutual funds, and exchange-traded funds online or through a Zions Direct financial representative.

About BondDesk Group LLC

BondDesk Group LLC is a financial technology firm, providing enterprise-wide fixed income solutions to many of the top broker-dealers in North America. The BondDesk Alternative Trading System (ATS), run by BondDesk Trading LLC, connects broker-dealers through a centralized marketplace by offering a diverse pool of liquidity for odd-lot fixed income securities in multiple asset classes. The BondDesk ATS executes over 20,000 transactions per day by providing 2,000 broker-dealers access to 35,000 live and executable offerings from over 100 premier fixed income dealers. In addition, BondDesk Group is a leading provider of innovative fixed income wealth management solutions, advisor workstations and fixed income analytical tools and applications.

Market Snapshot Information Disclaimer

TRACE bond trade data displayed as weighted average yield. Corporate bond information from FINRA’s Trade Reporting and Compliance Engine (TRACE) as of February 17, 2012. The Trade Data was developed by BondDesk Group based on trade reporting information from TRACE, and excludes transactions in callable and floating-rate coupon bonds. Auction information from auctions.zionsdirect.com as of February 17, 2012. The aggregate rating for each bond is based on average ratings from Moody’s and S&P (when available).

Although information in this Market Snapshot is believed to be reliable, Zions Direct and BondDesk make no express or implied warranties of any kind regarding this information, including as to its accuracy or completeness. Auction data excludes bonds in undersubscribed auctions. Any specific weekly results may be heavily influenced by large, atypical volatility, trade volume, or other unusual investing events.

Terms are defined as follows: < 9 months = anything up to .75 years to maturity; 1 year = anything greater than 0.75 years up to 1.5 years to maturity; 2 years = anything greater than 1.5 years up to 2.5 years to maturity; 3 years = anything greater than 2.5 years up to 4 years to maturity; 5 years = anything greater than 4 years up to 6 years to maturity; 7 years = anything greater than 6 years up to 8.5 years to maturity; 10 years = anything greater than 8.5 years up to 11.5 years to maturity.

Investment products and services offered through Zions Direct, member of FINRA/SIPC, a non-bank subsidiary of Zions Bank are NOT insured by the FDIC or any federal or state governmental agency, are NOT deposits or other obligations of, or guaranteed by, Zions Bancorporation or its affiliates, and MAY be subject to investment risks, including the possible loss of principal value or amount invested.

Private Banking and Liquidity with Stephanie Horne

Zions Direct — Tue, 21 Feb 2012 19:00:47 +0000

With the state of the current economy, many people are concerned about liquidity, or how fast they can turn their assets into cash. Stephanie Horne, Senior VP with Zions Bank Private Banking, addresses the trend in this interview. Read More

Zions Direct Announces Municipal Bond Auction Results

Russell Fisher — Tue, 21 Feb 2012 18:06:47 +0000

Auctions of Municipal Bonds for week ending February 17, 2012

SALT LAKE CITY – Zions Direct, the online broker-dealer that allows its customers to purchase municipal bonds in its daily web-based auctions, announces its weekly auction results. In auctions closed from February 13, 2012 to February 17, 2012, investors purchasing municipal bonds in the auctions received average tax-exempt yields 0.68 percentage points, or 68 basis points, higher than similar bonds as reported by the Municipal Securities Rulemaking Board (MSRB).

Municipal Bonds’ Average Yields Trade Data (source: MSRB)

	2011 – 2012	2012	2013	2014	2016	2018	2021
Rating	<9mo	1 yr	2 yr	3 yr	5 yr	7 yr	10 yr
AAA	0.25%	0.29%	0.38%	0.56%	0.71%	1.22%	1.68%
AA	0.28%	0.38%	0.48%	0.77%	0.89%	1.54%	1.99%
A	0.53%	0.52%	0.70%	0.94%	1.50%	1.87%	2.64%
BBB	0.67%	1.30%	0.86%	1.97%	2.46%	3.13%	3.93%
Insured AAA-AA	0.31%	0.39%	0.58%	0.89%	1.07%	1.60%	1.99%

Municipal Bond Auction Comparison Data (auction data from auctions.zionsdirect.com)

Issuer	Term	Rating	Auction Yield	MSRB	Difference
				Avg Yield	(basis points)
Univ of North Texas Sys, TX Rev	2 Month	AA	0.85%	0.28%	57
El Paso Ind Sch Dist, GO TX	6 Month	AA	0.79%	0.28%	51
Texas Tech Univ Sys, TX Rev	1 Year	Insured AA	1.39%	0.39%	100
Tooele Cnty SD Bldg Auth, UT Rev	2.5 Year	Insured A	1.57%	0.58%	99
Texas Trans Comm, TX Rev	1 Month	AAA	0.85%	0.25%	60
Tanque Verde USD #13, AZ GO	4 Month	AA	0.95%	0.28%	67
Mesa USD Maricopa Cnty, AZ GO	16 Month	Insured AA	1.38%	0.39%	99
Weber Sch Dist, UT GO	6.5 Year	Insured AAA	2.00%	1.60%	40
Cache Cnty SD, UT GO	4 Month	Insured AAA	0.78%	0.31%	47
State Univ of Iowa, IA Rev	8 Month	AA	0.85%	0.28%	57
New Mexico State Univ, NM Rev	13 Month	AA	1.16%	0.38%	78
City of Industry, CA GO	2.5 Year	AA	1.68%	0.48%	120
Davis Cnty School Dist, UT GO	3 Month	Insured AAA	0.85%	0.31%	54
Denver City and Cnty, CO GO	5 Month	AAA	0.80%	0.25%	55
Calleguas-Las Virgenes PFA, CA Rev	16 Month	Insured AAA	1.28%	0.39%	89
Snohomish Cnty, WA GO	3 Year	AA	1.46%	0.77%	69
Cache Cnty SD, UT GO	4 Month	Insured AAA	0.85%	0.31%	54
Dallas County, TX GO	6 Month	AAA	0.75%	0.25%	50
Frisco Indep Sch Dist, TX GO	6 Month	Insured AAA	0.80%	0.31%	49
Average Difference					68

THE INFORMATION IN THE MARKET SNAPSHOT IS NOT INTENDED TO SERVE AS THE BASIS FOR INVESTMENT DECISIONS. PAST PERFORMANCE IS NOT AN INDICATION OF FUTURE RESULTS.

About Zions Direct

MSRB bond trade data displayed as weighted average yield. Municipal bond information from MSRB as of February 17, 2012. The Trade Data was developed by BondDesk Group based on information from MSRB’s Real-Time Transaction Reporting System, and excludes transactions in taxable bonds. Auction information from auctions.zionsdirect.com as of February 17, 2012. The aggregate rating for each bond is based on average ratings from Moody’s and S&P (when available).

Municipal bonds are exempt from federal tax and may or may not be tax-exempt in individual states. The inclusion of municipal bonds selected by tax-exempt status is generated from pertinent federal tax attributes as populated from Muller, IDC, and/or BD ATS data sources.

Monday Cartoon

Dan Reynolds — Mon, 20 Feb 2012 15:24:37 +0000

Business Succession with Kevin Mikan

Zions Direct — Sat, 18 Feb 2012 16:00:47 +0000

In this interview, Kevin Mikan of Western National Trust Company explains why it is necessary for business owners to have a succession plan. Find out how an exit strategy is just as much about planning for things to go right as it is trying to keep them from going wrong. Read More

Vote for the Weekly Cartoon

Russell Fisher — Sat, 18 Feb 2012 03:35:05 +0000

Zions Direct Announces FDIC-Insured CD Auction Results

Russell Fisher — Thu, 16 Feb 2012 19:21:04 +0000

Results for Auctions of FDIC-insured Certificates of Deposit through February 14, 2012

SALT LAKE CITY – February 16, 2012 – Zions Direct, the online broker-dealer that allows its customers to purchase FDIC – insured Certificates of Deposit in its daily web-based auctions, announces its weekly auction results. In auctions closed from February 8, 2012 to February 14, 2012, investors purchasing FDIC-insured CDs in the auctions received average yields 0.47 percentage points, or 47 basis points, higher than average yields on similar CDs as reported in Informa Research Services Top 50 National APYs, February 14, 2012.

Zions Direct regularly publishes data from CDs auctioned at Zions Direct Auctions compared against similar securities offered in the marketplace in their Market Snapshot. Since February 2007, Zions Direct has auctioned over 1.1 billion dollars in more than 4,000 fixed-income auctions.

ZIONS DIRECT AUCTIONS MARKET SNAPSHOT

FDIC-Insured Certificate of Deposit Data*

1 Mo

2 Mo

3 Mo

6 Mo

9 Mo

1 Yr

Zions Direct Auction CDs

0.90%

0.56%

0.64%

0.76%

0.65%

0.66%

Informa Top 50 National APYs

0.13%

0.21%

0.30%

Zions Direct / National APY Difference

0.51%

0.55%

0.36%

Total Average Difference (basis points): 47

For more information on Zions Direct and the Market Snapshot go to zionsdirect.com to sign up to receive the free weekly newsletter or visit think.zionsdirect.com to view a Market Snapshot archive.

THE INFORMATION INCLUDED IS NOT INTENDED TO SERVE AS THE BASIS FOR INVESTMENT DECISIONS. PAST PERFORMANCE IS NOT AN INDICATION OF FUTURE RESULTS.

*See Additional Disclaimer for data source information.

About Zions Direct

Zions Direct is a broker-dealer that specializes in offering securities for self-directed and fixed income-focused investors. Zions Direct allows retail investors to buy FDIC-insured certificates of deposit, corporate and municipal bonds, and other investment products through their web-based Bond Store and auction platforms. In addition, clients can invest in stocks, mutual funds, and exchange-traded funds online or through a Zions Direct financial representative.

Investment products and services offered through Zions Direct, member of FINRA/SIPC, a non-bank subsidiary of Zions Bank are NOT insured by the FDIC or any federal or state governmental agency, are NOT deposits or other obligations of, or guaranteed by, Zions Bancorporation or its affiliates, and MAY be subject to investment risks, including the possible loss of principal value or amount invested. FDIC-insured CDs are insured up to $250,000 per individual account holder per bank.

Additional Disclaimer

Zions Direct Auction CD yields are from auctions ending February 8, 2012 to February 14, 2012. A weighted average is calculated when multiple CDs of similar terms are sold through platform. FDIC-insured CDs with terms of 1 month are noted as 1 month; 2 months are noted as 2 months; 3 – 4 months are noted as 3 months; 5 – 7 months as 6 months; 8 – 10 months as 9 months; 11 – 17 months as 1 year; 18 – 29 months as 2 year; 48 – 71 months as 5 years.

Top 50 National APYs – Top 50 U.S. bank and thrift holding companies by deposits. CD Rates Average APYs are based on certificate of deposit accounts for $25,000. Copyright 2012 Informa Research Services, Inc as a part of their Interest Rate Review – Retail. Report dated February 14, 2012.

Retirement Planning with Kevin Mikan

Zions Direct — Thu, 16 Feb 2012 16:00:02 +0000

Kevin Mikan of Western National Trust Company discusses four important considerations for individuals and small business owners in this interview about retirement planning. Learn how saving more and early can contribute to a successful retirement. Read More

Heard Off The Street: Dealing with Dividends

Investment Strategy Group — Wed, 15 Feb 2012 19:00:37 +0000

The Investment Strategy Group of Contango Capital Advisors provides regular updates on economic and financial conditions. This week, we examine the relative merits of investing in companies whose stock pays high dividends and those that demonstrate a pattern of increasing dividends.

Dividends really captured headlines last year as dividend-paying companies outperformed non-dividend-paying companies. In fact, the 100 highest dividend-yielding (dividends divided by price) companies in the S&P 500 Index, were up almost 9% last year versus the overall index’s 2% gain.

But, although high dividends have their allure for shareholders, companies that pay out such dividends typically distribute a large percentage of their earnings to shareholders, subtracting from the funds available for reinvestment. These companies tend to be relatively mature, mainly consisting of utility, telecommunication and consumer staples companies. Investing only in them would not result in a diversified portfolio. However, dividends do play an important role for many investors.

One way to determine how much of a company’s revenue is going to dividends is by calculating the percentage of earnings paid to shareholders (the payout ratio). For example, a company with $100 million in annual profits and a 25% payout ratio would distribute $25 million in dividends to shareholders. In general, dividend-paying stocks are particularly attractive now because the payout ratios of S&P 500 companies are near an all-time low of 29% versus their 20-year historical average of 40%. These low payout ratios indicate room for future dividend increases.

Magnifying the Power of Compounding

We believe that dividends can be a key component of total return and so focus on companies that are able to increase dividends as the company grows and companies that have room to increase their payout ratios over time. Since 1990, dividends have represented roughly 30% of investors’ total return, with capital appreciation accounting for the balance. Since 1930, dividends have represented almost half of total returns. Although capital appreciation typically grabs the spotlight, dividends should not go unnoticed. For investors who reinvest dividends that increase every year, the power of compounding is magnified.

The type of company that tends to be able to increase dividends varies with the market environment. Financial companies were once the darlings of the dividend world. After cutting or halting dividends beginning in 2008, financial companies are once again expected to increase dividends, assuming regulators give them the green light. The technology sector not only has the lowest dividend yields, but is also in a good position to pay shareholders higher dividends. They just have to shake off the stigma that growth companies do not distribute dividends. Even Apple, a company with almost $100 billion in cash, is hinting at paying a dividend.

Cash Buildup

Since the financial crisis, companies have been building up cash on their balance sheets. According to the Federal Reserve, non-financial corporate businesses held a record $2.1 trillion in cash in the third quarter of 2011. Companies have many options with regard to their excess cash, such as reinvesting (R&D and hiring) or making acquisitions.

There are also a couple of ways to return value to shareholders. One is through repurchasing stock: When a company buys back its stock, it reduces the number of outstanding shares, thereby increasing earnings per share. A second is paying a dividend, a far more common practice than repurchasing stock. Johnson & Johnson, for example, has increased dividends every year for the last 49 years. Consistently increasing a dividend every year can also be a sign of confidence in a company’s prospects. Paying consistent dividends also compels the company to demonstrate a measure of financial discipline. For management, that means maintaining a tricky balance between returning value to shareholders and reinvesting in the company’s future.

As an investor, you likely have your own tricky balance to maintain – that between income generation and potential growth. A single investment rarely addresses both these goals. The first may require reliable dividend-paying stocks that are not likely to experience much growth. The second may entail taking on more risk in order to obtain the potential for appreciation that you seek.

To arrive at the mix most appropriate to your situation requires careful consideration of your financial needs and aspirations together with your willingness and ability to take on risk. Before you commit to any investment, make sure you understand both its potential drawbacks and benefits – as well as its appropriate role and weight within your total portfolio.

This article was prepared by Contango Capital Advisor’s Investment Strategy Group. Contango Capital Advisors is an affiliate of Zions Direct.

IMPORTANT NOTE: Wealth management services are offered through Contango Capital Advisors, Inc. (Contango), a registered investment adviser and a nonbank subsidiary of Zions Bancorporation. Investments are not insured by the FDIC or any federal or state governmental agency, are not deposits or other obligations of, or guaranteed by, Zions Bancorporation or its affiliates, and may be subject to investment risks, including the possible loss of principal value of the amount invested. Some representatives of Contango are also registered representatives of Zions Direct, which is a member of FINRA/SIPC and a nonbank subsidiary of Zions Bank. Employees of Contango are shared employees of Western National Trust Company (WNTC), a subsidiary of Zions Bank and an affiliate of Contango. CCA0212-0018

Zions Direct Announces Corporate Bond Auction Results

Russell Fisher — Wed, 15 Feb 2012 15:00:34 +0000

Auctions of Corporate Bonds for week ending February 10, 2012

SALT LAKE CITY – Zions Direct, the online broker-dealer that allows its customers to purchase corporate bonds in its daily web-based auctions, announces its weekly auction results. In auctions closed from February 6, 2012 to February 10, 2012, investors purchasing corporate bonds in the auctions received average taxable yields 0.34 percentage points, or 34 basis points, higher than comparable bonds reported in FINRA’s Trade Reporting and Compliance Engine (TRACE).

Corporate Bonds’ Average Yields Trade Data (source: FINRA’s TRACE)

	2011 – 2012	2012	2013	2014	2016	2018	2021
Rating	<9mo	1 yr	2 yr	3 yr	5 yr	7 yr	10 yr
AAA	0.38%	0.41%	0.40%	1.86%	1.77%	2.19%	2.14%
AA	0.26%	0.52%	0.97%	1.23%	2.30%	3.22%	3.70%
A	0.61%	0.73%	1.22%	2.02%	2.42%	3.55%	3.47%
BBB	0.76%	1.55%	1.92%	2.73%	3.31%	4.05%	4.31%

Corporate Bond Auction Comparison Data (auction data from auctions.zionsdirect.com)

Issuer	Term	Rating	Auction Yield	TRACE	Difference
				Avg Yield	(basis points)
General Electric Capital Corp	1 Month	AA	1.03%	0.26%	77
Pepsico Inc	3 Month	A	0.98%	0.61%	37
John Deere Capital Corp	8 Month	A	0.95%	0.61%	34
Kellogg Co	13 Month	BBB	0.87%	1.55%	-68
Commonwealth Edison	1 Month	BBB	1.46%	0.76%	70
General Electric Cap (FDIC Ins)	4 Month	AA	0.98%	0.26%	72
Wells Fargo Corp / Golden West	8 Month	A	1.13%	0.61%	52
Clorox Company	13 Month	BBB	1.18%	1.55%	-37
Goldman Sachs (FDIC Ins)	1 Month	AA	0.80%	0.26%	54
BB&T Corporation	5 Month	A	0.91%	0.61%	30
Botting Group LLC / Pepsi BG	9 Month	A	0.98%	0.73%	25
Oracle Corp	14 Month	A	0.93%	0.73%	20
Walt Disney Company	1 Month	A	0.80%	0.61%	19
John Deere Capital (FDIC Ins)	4 Month	AA	0.85%	0.26%	59
Deutsche Bank AG London	11 Month	A	1.50%	0.73%	77
Analog Devices	2.5 Year	A	2.15%	1.22%	93
Oneok Partners LP	2 Month	BBB	1.35%	0.76%	59
Prudential Financial Inc	7 Month	BBB	1.11%	0.76%	35
Target Corp	11 Month	A	0.93%	0.73%	20
Dr Pepper Snapple Group, Inc	14 Month	BBB	1.00%	1.55%	-55
Average Difference					34

THE INFORMATION IN THE MARKET SNAPSHOT IS NOT INTENDED TO SERVE AS THE BASIS FOR INVESTMENT DECISIONS. PAST PERFORMANCE IS NOT AN INDICATION OF FUTURE RESULTS.

About Zions Direct

TRACE bond trade data displayed as weighted average yield. Corporate bond information from FINRA’s Trade Reporting and Compliance Engine (TRACE) as of February 10, 2012. The Trade Data was developed by BondDesk Group based on trade reporting information from TRACE, and excludes transactions in callable and floating-rate coupon bonds. Auction information from auctions.zionsdirect.com as of February 10, 2012. The aggregate rating for each bond is based on average ratings from Moody’s and S&P (when available).