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Editor’s Choice

Graham Harrop — Wed, 18 Jan 2012 17:03:03 +0000

Heard Off the Street: Mortgage Forgiveness – And an Unexpected Silver Lining

Investment Strategy Group — Tue, 15 Nov 2011 18:00:36 +0000

The Investment Strategy Group of Contango Capital Advisors provides regular updates on economic and financial conditions. In this commentary, we examine the likelihood – and the impact – of a wholesale writedown of mortgages.

The drumbeat for a wholesale write-down of mortgage principal is getting louder. Somewhere between 20 percent and 30 percent of US mortgage holders are underwater. Many will default, leaving their homes to be dumped on the market in foreclosure sales. Others can’t qualify to refinance into a lower rate loan, even though rates are now at historic lows, because of negative equity and higher credit standards. Those trapped in high rate loans are scrimping by and, in many cases, prevented from moving to job opportunities elsewhere. The swelling supply of defaulted homes drives all home prices lower. As one’s house is the principal component of personal net worth, many people feel – and indeed are – poorer, and so spend less. Hence the economy is weighed down by a giant anchor that, if left untended, will take several more years to loosen.

In earlier cycles, government demand via increased deficits offset lower consumer demand. However, that well has run dry, at least for the foreseeable future. There seems virtually no prospect of greatly increasing federal government spending while state and local expenditures, and so employment, are declining. There is more and more talk about mortgage principal reduction as the only feasible way to kickstart the economy. We take it seriously.

One Man’s Liability Is Another Man’s Asset
It’s Accounting 101: Balance sheets have two sides. The homeowner’s mountain of debt is the saver’s mountain of assets – safe bond assets, what is more. So, when the great write-off comes, there will be a dollar-for-dollar amount of investor losses. Much of the mortgage debt now resides with our government, via Fannie Mae and Freddie Mac guarantees as well as in the mortgage-backed bonds the Fed purchased in huge amounts to drive down interest rates. The rest is held by insurance companies, pension funds and mutual funds in the US and in Europe.

So we, as taxpayers, will bear probably the bulk of the loss while we, as holders of life insurance policies and pensions, ought to look very carefully at the assets of our insurance carriers and pension funds. The investment implications of this are clear. There isn’t much you can do about a life insurance policy but you certainly can look deeply into the portfolios of all the other investment funds that you own. In particular, high-coupon mortgage-backed bonds are likely to be relatively old, and the most likely to be written down. Not only will principal be lost, but because rates have fallen so much, the odds are that you or your fund purchased such bonds at premiums, meaning that resulting losses will be even greater than the face amount of the write-down.

The Silver Lining
There’s no way to recoup the entire write-down on the mortgages. But there may be a way to recover in part. The most palatable means of performing the mortgage balance evisceration is via the shared appreciation concept. To illustrate, a mortgage is written down from 120 percent to 80 percent of a house’s current appraised value. Initially, the investor loses one-third of the value of his asset. But, the investor would be entitled to half of the appreciation of the house above the new mortgage value. So, even if the house sold only for its appraised value, the investor would get back another 10 percent of the original loan. And if home prices rose once these changes were in place …

Playing out this scenario will likely entail bruised feelings and uncertainty for the first year or so, but then something very interesting is likely to happen. Institutions will want to sell some or all of their shared appreciation rights. It would be possible to assemble a geographically (and otherwise) diversified portfolio composed of these rights, and thereby create a new security. So far, it has been possible to buy into apartments, via real estate investment trusts (REITs), but otherwise it has been impossible to invest in a diversified way in the core of the housing market – owner-occupied houses. Over the long term, such housing has been a very effective inflation hedge. We look forward to this opportunity.

A Real Innovation for Retirement
Even more interesting, the establishment of a market for shared appreciation rights based on reset mortgages would only be the beginning of what would be possible. Once such a market is established, consider the opportunity open to an existing homeowner, especially one close to retirement. To date, getting equity out of your house has required either selling it or taking out a reverse mortgage. The first option puts you out on the street, or at least away from your neighborhood and friends. The second is a loan that accumulates interest, even if you can’t be evicted.

Suppose that you could sell shared appreciation rights in your house, while you continue to live in it? That possibility already exists in Australia. The Australian product is designed for retirement, and the buyer of shared appreciation rights is paid when the property is sold or the owner dies, whichever comes first. In this way, actuarial analysis of the pool underlying the security can provide a reasonably predictable timing of cash flow (subject, of course, to average rates of home appreciation).

If the concept of shared appreciation rights is indeed introduced in the US in response to the mortgage crisis, we believe that a new class of investment and retirement funding opportunities will be created, constituting some balm for those write-off wounds – as well as some intriguing possibilities for investors.

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. CCA1011-0177

Zions Direct Announces FDIC-Insured CD Auction Results

Russell Fisher — Thu, 03 Nov 2011 15:00:10 +0000

Results for Auctions of FDIC-insured Certificates of Deposit through November 1, 2011

SALT LAKE CITY – November 3, 2011 – 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 October 26, 2011 to November 1, 2011, investors purchasing FDIC-insured CDs in the auctions received average yields 0.79 percentage points, or 79 basis points, higher than average yields on similar CDs as reported in Informa Research Services Top 50 National APYs, November 1, 2011.

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 750 million dollars in more than 1,750 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

1.05%

0.90%

0.87%

0.76%

0.86%

1.48%

Informa Top 50 National APYs

0.16%

0.24%

0.34%

Zions Direct / National APY Difference

0.71%

0.52%

1.14%

Total Average Difference (basis points): 79

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 October 26, 2011 to November 1, 2011. 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 2011 Informa Research Services, Inc as a part of their Interest Rate Review – Retail. Report dated November 1, 2011.

Zions Direct Announces Corporate Bond Auction Results

Russell Fisher — Wed, 02 Nov 2011 15:00:38 +0000

Auctions of Corporate Bonds for week ending October 28, 2011

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 October 24, 2011 to October 28, 2011, investors purchasing corporate bonds in the auctions received average taxable yields 0.26 percentage points, or 26 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 850 million dollars in more than 3,000 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	0.00%	0.25%	0.81%	1.53%	1.70%	2.39%	2.57%
AA	0.21%	0.93%	1.13%	1.92%	2.37%	3.89%	4.09%
A	1.18%	1.66%	2.00%	2.88%	3.32%	4.14%	4.43%
BBB	2.41%	1.45%	2.20%	3.25%	4.00%	4.33%	4.65%

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

Issuer	Term	Rating	Auction Yield	TRACE	Difference
				Avg Yield	(basis points)
Regions Bank (FDIC Ins)	1 Month	AA	0.83%	0.21%	62
Vodafone Group PLC	4 Month	A	1.35%	1.18%	17
AT&T Inc (SBC Comm)	10 Month	A	1.97%	1.66%	31
Wells Fargo (FDIC Ins)	1 Month	AA	0.96%	0.21%	75
Target Corp	4 Month	A	0.92%	1.18%	-26
Pfizer Inc	5 Month	A	0.97%	1.18%	-22
HSBC USA Inc (FDIC Ins)	1 Month	AA	0.89%	0.21%	68
Daimler Finance NA LLC	2 Month	BBB	1.05%	2.41%	-136
Sovereign Bank (FDIC Ins)	3 Month	AA	0.95%	0.21%	74
General Electric Cap (FDIC Ins)	1 Month	AA	0.75%	0.21%	54
John Deere Capital Corp	4 Month	A	1.10%	1.18%	-08
Pepsico Inc	16 Month	A	1.90%	1.66%	24
JP Morgan / Bear Stearns Co	3 Month	A	1.30%	1.18%	12
Goldman Sachs Group Inc	9 Month	A	2.56%	1.66%	90
Caterpillar Fin Srvcs	15 Month	A	2.40%	1.66%	74
Average Difference					26

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 October 28, 2011. 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 October 28, 2011. 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.

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.

Zions Direct Announces Municipal Bond Auction Results

Russell Fisher — Tue, 01 Nov 2011 15:00:15 +0000

Auctions of Municipal Bonds for week ending October 28, 2011

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 October 24, 2011 to October 28, 2011, investors purchasing municipal bonds in the auctions received average tax-exempt yields 0.78 percentage points, or 78 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	0.35%	0.42%	0.61%	0.91%	1.37%	1.77%	2.26%
AA	0.39%	0.47%	0.79%	1.09%	1.42%	2.31%	2.73%
A	0.63%	1.05%	1.03%	1.58%	2.33%	3.07%	3.69%
BBB	0.99%	1.51%	2.20%	2.19%	3.47%	3.67%	4.19%
Insured AAA-AA	0.41%	0.54%	0.77%	1.18%	1.76%	2.19%	2.62%

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

Issuer	Term	Rating	Auction Yield	MSRB	Difference
				Avg Yield	(basis points)
Mesa Cnty Valley SD #51, CO GO	1 Month	Insured AA	1.35%	0.41%	94
Tarrant Reg Wtr Dist, TX Rev	4 Month	Insured AA	0.85%	0.41%	44
Denton Cnty, TX GO	21 Month	Insured AAA	1.23%	0.77%	46
Seattle, WA GO	1 Month	AAA	1.37%	0.35%	102
Utah St Brd Regents, UT Rev	1 Month	Insured AA	0.98%	0.41%	57
Park City, UT GO	6 Month	AA	0.85%	0.39%	46
Seattle, WA GO	1 Month	AA	0.95%	0.39%	56
Lake Stevens SD #4, WA GO	1 Month	AA	0.90%	0.39%	51
Utah County, UT Rev	1 Month	AA	1.00%	0.39%	61
Arizona State Univ, AZ COP	8 Month	Insured A	1.64%	0.41%	123
Westminster, CO COPS	1 Month	Insured A	1.05%	0.41%	64
Gilpin Cnty School Dist, CO GO	1 Month	AA	0.95%	0.39%	56
Muni Elec Auth of Georgia, GA Rv	2 Month	Insured A	0.89%	0.41%	48
Denver City and Cnty, CO GO	4 Year	AAA	2.62%	0.91%	171
Westminster, CO Rev	1 Month	Insured AA	0.89%	0.41%	48
Parkrose SD, Multnomah Co, OR GO	1 Month	AA	1.05%	0.39%	66
Hempstead Village, NY GO	8 Month	A	2.25%	0.63%	162
New Caney ISD, TX GO	15 Month	Insured A	1.70%	0.54%	116
Average Difference					78

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 October 28, 2011. 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 October 28, 2011. 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.

Zions Direct Announces FDIC-Insured CD Auction Results

Russell Fisher — Thu, 27 Oct 2011 14:00:41 +0000

Results for Auctions of FDIC-insured Certificates of Deposit through October 25, 2011

SALT LAKE CITY – October 27, 2011 – 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 October 19, 2011 to October 25, 2011, investors purchasing FDIC-insured CDs in the auctions received average yields 0.54 percentage points, or 54 basis points, higher than average yields on similar CDs as reported in Informa Research Services Top 50 National APYs, October 25, 2011.

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 750 million dollars in more than 1,750 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

0.98%

0.48%

0.81%

0.69%

1.01%

0.85%

Informa Top 50 National APYs

0.16%

0.24%

0.34%

Zions Direct / National APY Difference

0.65%

0.45%

0.51%

Total Average Difference (basis points): 54

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 October 19, 2011 to October 25, 2011. 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 2011 Informa Research Services, Inc as a part of their Interest Rate Review – Retail. Report dated October 25, 2011.

Zions Direct Announces Corporate Bond Auction Results

Russell Fisher — Wed, 26 Oct 2011 14:00:29 +0000

Auctions of Corporate Bonds for week ending October 21, 2011

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 October 17, 2011 to October 21, 2011, investors purchasing corporate bonds in the auctions received average taxable yields 0.03 percentage points, or 3 basis points, lower 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	0.00%	0.59%	0.84%	1.69%	1.56%	2.22%	2.92%
AA	0.21%	0.69%	1.30%	1.97%	2.59%	3.91%	4.22%
A	1.47%	2.28%	2.03%	3.13%	3.23%	4.25%	4.57%
BBB	1.36%	1.53%	2.34%	3.18%	3.95%	4.55%	4.68%

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	4 Month	AA	1.99%	0.21%	178
Costco Wholesale Corp	5 Month	A	1.05%	1.47%	-42
ConocoPhillips	1 Year	A	1.98%	2.28%	-30
Goldman Sachs Group Inc	3 Month	A	1.13%	1.47%	-35
General Electric Capital Corp	4 Month	AA	1.49%	0.21%	128
JP Morgan Chase & Co.	11 Month	A	1.65%	2.28%	-63
General Electric Capital Corp	1 Month	AA	1.05%	0.21%	84
Kraft Foods Inc	7 Month	BBB	1.05%	1.36%	-31
Walt Disney Company	13 Month	A	1.00%	2.28%	-129
JP Morgan Chase (FDIC Ins)	1 Month	AA	1.02%	0.21%	81
Pepsico Inc	7 Month	A	1.01%	1.47%	-46
Astrazeneca PLC	11 Month	A	0.92%	2.28%	-136
Citigroup Inc., (FDIC Ins)	1 Month	AA	0.95%	0.21%	74
Hewlett-Packard Co	4 Month	A	0.99%	1.47%	-49
General Mills Inc	11 Month	BBB	1.25%	1.53%	-28
Average Difference					-3

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 October 21, 2011. 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 October 21, 2011. The aggregate rating for each bond is based on average ratings from Moody’s and S&P (when available).

Zions Direct Announces Municipal Bond Auction Results

Russell Fisher — Tue, 25 Oct 2011 14:00:04 +0000

Auctions of Municipal Bonds for week ending October 21, 2011

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 October 17, 2011 to October 21, 2011, investors purchasing municipal bonds in the auctions received average tax-exempt yields 0.83 percentage points, or 83 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	0.28%	0.42%	0.62%	0.93%	1.44%	1.92%	2.34%
AA	0.45%	0.49%	0.70%	1.11%	1.67%	2.31%	2.75%
A	0.53%	0.92%	1.12%	1.78%	2.36%	3.13%	3.65%
BBB	1.11%	1.46%	1.40%	2.48%	3.15%	3.74%	3.03%
Insured AAA-AA	0.42%	0.56%	0.78%	1.28%	1.74%	2.30%	2.84%

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

Issuer	Term	Rating	Auction Yield	MSRB	Difference
				Avg Yield	(basis points)
Loudoun Cnty, VA GO	1 Month	AAA	1.00%	0.28%	72
Teague ISD, Freestone Co, TX GO	4 Month	Insured AAA	0.87%	0.42%	45
Energy Northwest, WA Rev	8 Month	AA	1.30%	0.45%	85
Garfield Cnty SD #16, CO GO	1 Month	Insured AA	1.15%	0.42%	73
Collin County, TX GO	4 Month	AAA	0.98%	0.28%	70
Buffalo Fiscal Stab Auth, NY Rev	10 Month	Insured A	1.79%	0.56%	123
Davis Cnty School Dist, UT GO	1 Month	Insured AAA	0.95%	0.42%	53
Austin, TX GO	10 Month	AAA	0.96%	0.42%	54
Macedonia, OH GO	4 Year	Insured AA	2.32%	1.74%	58
University of Texas Sys, TX Rev	2 Month	AAA	0.95%	0.28%	67
Chalotte-Mecklenburg Hosp, NC Rev	15 Month	AA	1.50%	0.49%	101
Warwick School Dist, PA GO	2.5 Year	Insured AA	3.24%	0.78%	246
Goldsmith Metro Dist, CO GO	1 Month	Insured A	1.35%	0.42%	93
State of Connecticut, CT GO	4 Month	AA	0.90%	0.45%	45
State of Washington, WA GO	2 Year	Insured AA	1.38%	0.78%	60
Average Difference					83

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 October 21, 2011. 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 October 21, 2011. The aggregate rating for each bond is based on average ratings from Moody’s and S&P (when available).

Zions Direct Announces FDIC-Insured CD Auction Results

Russell Fisher — Thu, 20 Oct 2011 15:00:27 +0000

Results for Auctions of FDIC-insured Certificates of Deposit through October 18, 2011

SALT LAKE CITY – October 20, 2011 – 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 October 12, 2011 to October 18, 2011, investors purchasing FDIC-insured CDs in the auctions received average yields 0.60 percentage points, or 60 basis points, higher than average yields on similar CDs as reported in Informa Research Services Top 50 National APYs, October 18, 2011.

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 750 million dollars in more than 1,750 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

1.19%

0.70%

0.77%

0.98%

1.02%

0.79%

Informa Top 50 National APYs

0.16%

0.24%

0.34%

Zions Direct / National APY Difference

0.61%

0.74%

0.45%

Total Average Difference (basis points): 60

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 October 12, 2011 to October 18, 2011. 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 2011 Informa Research Services, Inc as a part of their Interest Rate Review – Retail. Report dated October 18, 2011.

Zions Direct Announces Corporate Bond Auction Results

Russell Fisher — Wed, 19 Oct 2011 15:00:32 +0000

Auctions of Corporate Bonds for week ending October 14, 2011

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 October 10, 2011 to October 14, 2011, investors purchasing corporate bonds in the auctions received average taxable yields 0.06 percentage points, or 6 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	1.05%	0.42%	1.07%	0.97%	2.08%	2.44%	2.92%
AA	0.26%	0.70%	1.39%	2.29%	2.76%	4.62%	4.17%
A	1.32%	2.09%	2.21%	3.74%	3.74%	4.34%	4.83%
BBB	1.59%	1.59%	2.41%	3.30%	4.48%	4.82%	4.99%

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

Issuer	Term	Rating	Auction Yield	TRACE	Difference
				Avg Yield	(basis points)
Credit Suisse USA Inc	1 Month	AA	1.20%	0.26%	94
Pfizer Inc	5 Month	A	1.02%	1.32%	-31
Target Corp	15 Month	A	1.75%	2.09%	-34
JP Morgan / Bear Stearns Co	4 Month	A	1.65%	1.32%	33
General Electric Capital Corp	6 Month	AA	1.23%	0.26%	97
IBM Corp	13 Month	A	1.10%	2.09%	-99
General Electric Capital Corp	1 Month	AA	1.05%	0.26%	79
Walt Disney Company	4 Month	A	0.93%	1.32%	-39
HSBC Finance Corp	13 Month	A	2.49%	2.09%	40
AT&T Inc	3 Month	A	1.70%	1.32%	38
John Deere Capital Corp	5 Month	A	1.23%	1.32%	-09
Boeing Company	13 Month	A	1.10%	2.09%	-99
Average Difference					6

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 October 14, 2011. 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 October 14, 2011. The aggregate rating for each bond is based on average ratings from Moody’s and S&P (when available).