Think » Zions Direct

Zions Direct Auctions with David Hemingway

Zions Direct — Wed, 11 Jan 2012 16:27:56 +0000

Zions Direct offers a unique opportunity for individual investors to participate in auctions for various securities. Learn about the advantages of the auction platform in this interview with David Hemingway, Senior Investment Officer for Zions Bancorporation and Chairman of the Board for Zions Direct. Read More

Zions Direct Announces FDIC-Insured CD Auction Results

Russell Fisher — Thu, 08 Dec 2011 16:21:16 +0000

Results for Auctions of FDIC-insured Certificates of Deposit through December 6, 2011

SALT LAKE CITY – December 8, 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 November 30, 2011 to December 6, 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, December 6, 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 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

0.80%

0.53%

0.65%

0.77%

0.95%

0.91%

Informa Top 50 National APYs

0.15%

0.23%

0.33%

Zions Direct / National APY Difference

0.50%

0.54%

0.58%

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 November 30, 2011 to December 6, 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 December 6, 2011.

Learning About Minidoka County’s Bond Refinancing

Zions Direct — Wed, 16 Nov 2011 16:59:45 +0000

Here at Zions Direct, we believe education can be empowering and that knowledge is often the cornerstone of success. This is the first in a series of investment-related educational videos we are releasing to enable this learning process. Here we explore how a municipal bond can positively impact a community by taking a behind-the-scenes look at a recent bond sale facilitated by Zions Bank Public Finance, an affiliate of Zions Direct, for the Minidoka County School District in Idaho.

A Tale of Two Strategies: Bond Funds vs. Individual Bonds

Larry Denham — Wed, 25 May 2011 17:45:59 +0000

In fixed income investing there is an on-going debate over the advisability of investing in bond funds versus investing individual bonds. Investment professionals on both sides of the argument have persuasively outlined the advantages and disadvantages of either approach. As the analysis has continued over the years, it seems that the only agreed upon conclusion is that the answer ultimately depends on the individual circumstances (age, health, employment status, tax bracket, net worth, investment understanding, etc.) and investment objectives (growth, income, preservation of principal, etc.) of the investor.

That being said, with the availability of online investing, and after evaluating their circumstances and investment objectives, investors are learning how easy it is to take advantage of some of the benefits of buying individual bonds. Hence, without much publicity, it appears to this author that the argument has quietly shifted in favor of investing in individual bonds.

In order to understand why this shift is occurring, it is important to first understand both sides of the bond funds versus individual bonds argument. Most writings on the subject have focused on the following investment traits:

                                                            (1) Diversification
                                                            (2) Reinvestment of income
                                                            (3) Investment control
                                                            (4) Cost
                                                            (5) Interest rate risk
                                                            (6) Liquidity
                                                            (7) Portfolio size

A brief discussion of each of these investment traits is outlined below.

(1) Diversification
Bond Funds: Because the underlying portfolio of most bond funds includes many different types of bonds of various maturities, investing in a bond fund conveniently provides the investor with immediate and widespread diversification. With numerous different bonds represented in the fund, the investor’s exposure to the default /credit risk of any one issuer is minimized.

Individual Bonds: In this author’s opinion, in order to achieve adequate diversification with the purchase of individual bonds, investors need about $100,000 or more invested in bonds of approximately 15 different issuers. The impact of a default will be greater within a portfolio of individual bonds than with a bond fund, because of the numerous and diverse holdings within a bond fund. When buying individual bonds, default /credit risk in most cases is addressed by limiting investment to essential purpose, high quality investment grade (preferably “A” or better) bonds.
Advantage: Bond Funds

(2) Reinvestment of Income
Bond Funds: Bond funds pay interest monthly in a fluctuating amount. Payments are based upon the interest received from the sum of all the investments held in the fund. As a result, the amount of income received varies each month. Because an investor can choose to automatically reinvest income by purchasing additional shares on a monthly basis, low yielding cash investments are typically held to a minimum.

Individual Bonds: Because individual bonds pay interest on a fixed, semi-annual basis, an investor is generally limited to reinvesting the income in short-term cash instruments until that amount exceeds $5,000. At that point in time, an additional $5,000 bond may be purchased for reinvestment.
Advantage: Bond Funds

(3) Investment Control
Bond Funds: When purchasing a bond fund, investors surrender control to the fund manager to make all investment decisions. An investor’s involvement is limited to matching investment objectives and portfolio duration with the information contained in the fund prospectus. In addition, with investment in a bond fund, investors have no control over how much income they will be receiving during any particular period. Nor does an investor have any control over the timing of capital gains taxes, or determining whether or not bonds inside the fund portfolio are subject to AMT (alternative minimum tax) or are subject to the investor’s state income tax.

Individual Bonds: Decision making responsibility and investment control remains with the investor when purchasing individual bonds. Individual bonds can generate a relatively predictable income with semi-annual interest payments and are redeemed at specific maturity dates. The investor has the opportunity to review the appropriateness of each investment including the use of AMT bonds and bonds issued from within the investor’s home state. The investor purchasing individual bonds is also able to decide the type of issuer, maturity dates, call provisions and credit parameters for each investment.
Advantage: Individual Bonds

(4) Cost
Bond Funds: A bond fund may be purchased online through a brokerage account; and investors pays annual management fees and bond fund expenses. Shop carefully because these fees and expenses can range from .25% to 1.25%. A word of caution: depending on the bond fund selected, there can also be an up-front sales commission (load) charged (loads typically range from 2% to 4%) on the amount invested.

Individual Bonds: Traditionally, the cost of purchasing an individual bond was either the broker’s commission or an unknown (to the investor) mark up on the price of the bond. Now individual bonds may be purchased online for an exact price at a flat commission per trade (for example: $10.95 per transaction with Zions Direct. Full Disclosure: Zions Direct is a non-bank subsidiary of Zions Bank, where I am a SVP and business development officer.), regardless of the dollar amount of the transaction. Online brokerage websites offer thousands of bonds representing the secondary market inventory of many broker/dealers. After individual bonds are purchased they are held in individual brokerage accounts and principal and interest is received, call redemptions (if any) are automatically processed and year-end tax information is provided.
Advantage: Individual Bonds

(5) Interest Rate Risk
Bond Funds: Because bonds in a bond fund are constantly being bought and sold, there is no specific maturity date for the money invested in the bond fund. Like all fixed income investments, the money held in the bond fund is subject to interest rate risk (an inverse relationship exists: when interest rates increase bond prices decrease and vice versa). Hence, when shares are liquidated they are sold at the current net asset value (NAV); and, depending on interest rate levels, the sale could result in a potential loss of principal. Generally, the risk of price volatility and fluctuating principal is higher for bonds with longer maturities.

Individual Bonds: Individual bonds have a defined maturity date. Interest rate risk is avoided by purchasing individual bonds with the intention of holding them to maturity. The market price of any fixed income investment fluctuates prior to maturity based upon the level and direction of interest rates. As a result, barring a credit default, if a bond is held to maturity it provides principal protection by being redeemed at par value, regardless of prevailing interest rates.
Advantage: Individual Bonds

(6) Liquidity
Bond Funds: With bond funds, liquidity is readily available. If a person needs money for an unexpected expenditure or desires to change asset allocation percentages, an investor may sell shares of the fund at anytime at the current NAV less redemption fees, if applicable. As previously mentioned, depending on interest rate levels, the sale could result in a potential loss of principal. Liquidating a portion of the bond fund changes the amount of the fixed income investment and does not change the characteristics of the fund portfolio.

Individual Bonds: Individual bonds can also be sold prior to maturity. The prices for bonds sold in the secondary market are influenced by prevailing interest rates and like mutual funds could be sold for more or less than the original investment. If some bonds are less liquid than others, those bonds may be subject to greater price volatility.

It is important to note that short term objectives and short term investments should not be mixed with long term objectives and long term investments. Hence, liquidity is best accomplished by holding money in short term cash instruments in order to provide funds for unexpected needs. Fixed income objectives should then be met by separately purchasing bond funds or individual bonds that will be held to maturity.
Advantage: Bond Funds

(7) Portfolio Size
Bond Funds: Most bond funds have an initial minimum investment of $5,000 and allow the investment of any dollar amount above the initial minimum. Hence, an investor is able to make a fixed income investment in a bond fund with a relatively small amount of money. Nor does the investor have a size constraint other than what prudence dictates by way of diversification needs and asset allocation strategies.

Individual Bonds: Most individual bonds are sold in $5,000 denominations and may be purchased in much larger blocks depending on the investor’s net worth and available funds. However, in my opinion, portfolio size of much under $100,000 doesn’t give an investor adequate opportunity to achieve an acceptable level of diversification either by issuer, bond type or maturity.
Advantage: ?

Conclusion
So what’s the answer? Is it more advisable to invest in bond funds or individual bonds? Is the answer still determined by the summation of each investor’s individual circumstances and investment objectives? Let’s suggest an answer by reviewing some of the more obvious conclusions and allowing the reader to decide his or her own investor profile.

If an investor (a) desires as much diversification as possible in order to protect against default/credit risk, (b) is looking for a quick entry into the fixed income market with the on-going convenience of automatic reinvestment of interest earnings, (c) chooses not to be involved in the underlying investment decisions, (d) understands interest rate risk and that there could be a loss of principal if interest rates are higher when shares are sold, and (e) is willing to pay management fees and fund expenses………then buy a bond fund.

On the other hand, if an investor (a) has at least $100,000 or more of investable, fixed income assets, (b) wants to retain investment control, (c) desires relatively predictable income, (d) intends to protect principal by holding bonds to maturity, and (e) is looking for lower expenses by virtue of buying bonds online directly from the secondary market.…..…then buy individual bonds.

It is this author’s opinion that gradually more and more investors will be attracted to the advantages of purchasing individual bonds. And as investors learn the ease of buying individual bonds online, the investor shift from buying bond funds to buying more individual bonds will likely accelerate.

Nevertheless, decide which type of investor profile you are and start investing!

Larry Denham, senior vice president and business development officer for Zions Bank.

This article is for information and education purposes only. You will need to evaluate the merits and risks associated with relying on any information provided. Although this article may provide information relating to approaches to investing or types of securities and investments you might buy or sell, Zions Direct and its affiliates are not providing investment recommendations, advice, or endorsements. Information has been obtained from what are considered to be reliable sources; however, their accuracy, completeness, or reliability cannot be guaranteed. Zions Direct makes no warranties and bears no liability for your use of this information. The information made available to you is not intended, and should not be construed as legal, tax, or investment advice, or a legal opinion.

Zions Direct Announces Corporate Bond Auction Results

Russell Fisher — Wed, 04 May 2011 15:00:35 +0000

Auctions of Corporate Bonds for week ending April 29, 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 their weekly auction results. In auctions closed from April 25, 2011 to April 29, 2011, investors purchasing corporate bonds in the auctions received average taxable yields 0.94 percentage points, or 94 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 750 million dollars in more than 2,000 fixed-income auctions.

ZIONS DIRECT / BONDDESK® MARKET SNAPSHOT

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

	2011	2012	2013	2014	2016	2018	2021
Rating	<9mo	1 yr	2 yr	3 yr	5 yr	7 yr	10 yr
AAA	0.19%	0.36%	0.57%	1.56%	2.44%	3.34%	3.85%
AA	0.27%	0.57%	1.10%	1.92%	2.84%	3.84%	4.59%
A	0.40%	0.70%	1.25%	2.04%	3.15%	4.17%	4.60%
BBB	0.61%	0.96%	1.79%	2.50%	3.53%	4.42%	4.97%

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	7 Month	AA	1.28%	0.27%	101
US Bancorp (FDIC Ins)	11 Month	AAA	1.66%	0.36%	130
Conoco Phillips	18 Month	A	1.12%	0.70%	42
Suntrust Bank (FDIC Ins)	7 Month	AAA	1.95%	0.19%	176
Daimler Finance NA LLC	9 Month	BBB	1.46%	0.61%	85
Goldman Sachs	9 Month	A	1.49%	0.40%	109
HSBC Finance Corp	1 Month	A	1.30%	0.40%	90
Citigroup Inc., (FDIC Ins)	1 Year	AAA	1.27%	0.36%	91
John Deere Capital	2 Year	A	2.36%	1.25%	111
JP Morgan	1 Month	A	1.15%	0.40%	75
Boeing Capital Corp	10 Month	A	1.56%	0.70%	86
General Electric Capital	18 Month	AA	1.84%	0.57%	127
HSBC Finance Corp	1 Month	A	1.25%	0.40%	85
Bank of America	1 Year	A	1.41%	0.70%	71
Lowe’s Companies Inc	17 Month	A	1.00%	0.70%	30
Average Difference					94

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 and corporate and municipal bonds 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 April 29, 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 April 29, 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. FDIC-insured CDs are insured up to $250,000 per individual account holder per bank.

Zions Direct Announces Auction Results

Russell Fisher — Wed, 06 Apr 2011 15:00:47 +0000

Auctions of Municipal and Corporate Bonds for week ending April 1, 2011

SALT LAKE CITY – Zions Direct, the online broker-dealer that allows its customers to purchase municipal bonds and corporate bonds in its daily web-based auctions, announces their weekly auction results. In auctions closed from March 28, 2011 to April 1, 2011, investors purchasing municipal bonds in the auctions received average tax-exempt yields 1.04 percentage points, or 104 basis points, higher than similar bonds as reported by the Municipal Securities Rulemaking Board (MSRB). Customers that purchased corporate bonds in the auctions received average taxable yields 104 basis points higher than comparable bonds reported in FINRA’s Trade Reporting and Compliance Engine (TRACE).

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

	2011	2012	2013	2014	2016	2018	2021
Rating	<9mo	1 yr	2 yr	3 yr	5 yr	7 yr	10 yr
AAA	0.55%	0.56%	0.86%	1.22%	1.89%	2.55%	2.99%
AA	0.61%	0.80%	1.11%	1.54%	2.23%	2.91%	3.47%
A	0.72%	1.19%	2.07%	2.07%	3.09%	3.71%	4.28%
BBB	1.69%	1.86%	1.91%	3.46%	4.19%	4.71%	5.50%
Insured AAA-AA	0.55%	0.81%	1.15%	1.68%	2.23%	2.89%	3.54%

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

Issuer	Term	Rating	Auction Yield	MSRB	Difference
				Avg Yield	(basis points)
Cache Cnty SD, UT GO	3 Month	Insured AAA	1.15%	0.55%	60
American Fork, UT GO	3 Year	AA	3.00%	1.54%	146
Glendale Union High School Dist #205	15 Month	AA	1.65%	0.80%	85
Florida St Turnpike Rev	3 Month	AA	1.65%	0.61%	104
Austin, TX Rev	2 Month	AA	1.60%	0.61%	99
City of Prescott, Arizona	3.5 Year	AA	3.25%	1.54%	171
Houston, City of – Texas	1 Month	AA	1.77%	0.61%	116
Harris County, Texas	5 Month	A	2.00%	0.72%	128
Clark County, Washington	20 Month	AA	1.89%	1.11%	78
Hillsborough County, FL School Board	3 Month	AA	1.46%	0.61%	85
Saluda County, SC School District No.1	11 Month	AA	1.53%	0.80%	73
Davis County, UT Municipal Bldg Auth	3.5 Year	AA	2.70%	1.54%	116
State of New Mexico	3 Month	AA	1.41%	0.61%	80
Denver, CO – City and County	6 Month	AA	1.38%	0.61%	77
Tolleson, Arizona	2 Year	AA	2.60%	1.11%	149
Average Difference					104

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

	2011	2012	2013	2014	2016	2018	2021
Rating	<9mo	1 yr	2 yr	3 yr	5 yr	7 yr	10 yr
AAA	0.23%	0.43%	0.77%	1.68%	2.43%	3.31%	3.95%
AA	0.34%	0.57%	1.27%	2.15%	3.17%	4.11%	4.97%
A	0.50%	0.80%	1.43%	2.29%	3.25%	4.30%	4.76%
BBB	1.21%	1.08%	1.79%	2.76%	3.68%	4.40%	5.04%

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	1 Month	AA	1.05%	0.34%	71
JP Morgan	10 Month	A	1.76%	0.80%	96
Wachovia Corp (Wells Fargo)	7 Month	A	2.48%	0.50%	198
Abbott Labs	2 Month	A	1.15%	0.50%	65
Citigroup, Inc.	6 Month	A	2.45%	0.50%	195
Bank of America, N.A.	13 Month	A	1.50%	0.80%	70
HSBC Finance Corp	1 Month	A	1.35%	0.50%	85
General Electric Capital	8 Month	AA	1.50%	0.34%	116
Conoco Phillips	19 Month	A	2.01%	1.43%	58
John Deere Capital	2 Month	A	1.36%	0.50%	86
AT&T	10 Month	A	1.83%	0.80%	103
Wal-Mart	1 Year	AA	1.60%	0.57%	103
Bank of America / Merrill Lynch & Co	4 Month	A	1.65%	0.50%	115
Verizon Inc.	6 Month	BBB	2.40%	1.21%	119
John Deere Capital	18 Month	A	2.26%	1.43%	83
Average Difference					104

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 and TRACE bond trade data displayed as weighted average yield. Municipal bond information from MSRB as of April 1, 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 April 1, 2011.

Corporate bond information from FINRA’s Trade Reporting and Compliance Engine (TRACE) as of April 1, 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. 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.

Announcement of Yields from CD Auctions

Russell Fisher — Thu, 31 Mar 2011 15:00:24 +0000

Results for Auctions of FDIC-insured Certificates of Deposit through March 29, 2011

SALT LAKE CITY – March 31, 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 their weekly auction results. In auctions closed from March 23, 2011 to March 29, 2011, investors purchasing FDIC-insured CDs in the auctions received average yields 0.30 percentage points, or 30 basis points, higher than average yields on similar CDs as reported in Informa Research Services Top 50 National APYs, March 29, 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

1.14%

0.53%

0.64%

0.67%

0.59%

0.55%

Informa Top 50 National APYs

0.21%

0.30%

0.44%

Zions Direct / National APY Difference

0.43%

0.37%

0.11%

Total Average Difference (basis points): 30

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 and corporate and municipal bonds 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 March 23, 2011 to March 29, 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 2010 Informa Research Services, Inc as a part of their Interest Rate Review – Retail. Report dated March 29, 2011.

Zions Direct Announces Auction Results

Russell Fisher — Wed, 30 Mar 2011 15:00:42 +0000

Auctions of Municipal and Corporate Bonds for week ending March 25, 2011

SALT LAKE CITY – Zions Direct, the online broker-dealer that allows its customers to purchase municipal bonds and corporate bonds in its daily web-based auctions, announces their weekly auction results. In auctions closed from March 21, 2011 to March 25, 2011, investors purchasing municipal bonds in the auctions received average tax-exempt yields 1.04 percentage points, or 104 basis points, higher than similar bonds as reported by the Municipal Securities Rulemaking Board (MSRB). Customers that purchased corporate bonds in the auctions received average taxable yields 104 basis points higher than comparable bonds reported in FINRA’s Trade Reporting and Compliance Engine (TRACE).

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

	2011	2012	2013	2014	2016	2018	2021
Rating	<9mo	1 yr	2 yr	3 yr	5 yr	7 yr	10 yr
AAA	0.46%	0.59%	0.92%	1.19%	1.80%	2.36%	3.01%
AA	0.57%	0.61%	1.02%	1.40%	2.12%	2.74%	3.35%
A	0.76%	1.27%	1.78%	2.09%	2.76%	3.53%	4.11%
BBB	4.60%	1.50%	2.84%	3.33%	4.28%	4.87%	5.35%
Insured AAA-AA	0.61%	0.73%	1.10%	1.53%	2.26%	2.92%	3.46%

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

Issuer	Term	Rating	Auction Yield	MSRB	Difference
				Avg Yield	(basis points)
University of North Texas	1 Month	A	2.00%	0.76%	124
Arizona State University	16 Month	AA	2.40%	0.61%	179
State of New Mexico	3 Month	AA	1.10%	0.57%	53
Weber County, UT	10 Month	AA	1.37%	0.61%	76
Maricopa Cnty Un HSD, AZ GO	3 Month	AA	1.20%	0.57%	63
Tacoma WA Metro Park Dist	8 Month	AA	1.72%	0.57%	115
Weber Sch Dist, UT GO	3 Month	Insured AAA	1.37%	0.61%	76
State of Minnesota	7 Month	AA	1.47%	0.57%	90
Arizona State Facilities Board	3 Month	AAA	1.86%	0.46%	140
Osceola County, Florida	6 Month	A	2.03%	0.76%	127
Average Difference					104

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

	2011	2012	2013	2014	2016	2018	2021
Rating	<9mo	1 yr	2 yr	3 yr	5 yr	7 yr	10 yr
AAA	0.21%	0.36%	0.64%	1.71%	2.44%	3.36%	4.02%
AA	0.32%	0.56%	1.18%	2.09%	3.04%	3.90%	4.73%
A	0.39%	0.76%	1.32%	2.09%	3.25%	4.14%	4.73%
BBB	0.58%	1.17%	1.79%	2.65%	3.60%	4.49%	5.11%

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

Issuer	Term	Rating	Auction Yield	TRACE	Difference
				Avg Yield	(basis points)
JP Morgan	5 Month	A	1.19%	0.39%	80
HSBC Finance Corp	16 Month	A	2.43%	0.76%	167
Verizon Inc.	6 Month	BBB	1.21%	0.58%	63
Target	1 Year	A	1.40%	0.76%	64
Credit Suisse	5 Month	AA	1.15%	0.32%	83
General Electric Capital	11 Month	AA	1.98%	0.56%	142
John Deere Capital	3 Month	A	1.46%	0.39%	107
Caterpillar Fin Srvcs	14 Month	A	1.80%	0.76%	104
General Electric Capital	8 Month	AA	1.60%	0.32%	128
Goldman Sachs	11 Month	A	1.80%	0.76%	104
Average Difference					104

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 and TRACE bond trade data displayed as weighted average yield. Municipal bond information from MSRB as of March 25, 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 March 25, 2011.

Corporate bond information from FINRA’s Trade Reporting and Compliance Engine (TRACE) as of March 25, 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. The aggregate rating for each bond is based on average ratings from Moody’s and S&P (when available).

Announcement of Yields from CD Auctions

Russell Fisher — Thu, 24 Mar 2011 15:00:38 +0000

Results for Auctions of FDIC-insured Certificates of Deposit through March 22, 2011

SALT LAKE CITY – March 24, 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 their weekly auction results. In auctions closed from March 16, 2011 to March 22, 2011, investors purchasing FDIC-insured CDs in the auctions received average yields 0.33 percentage points, or 33 basis points, higher than average yields on similar CDs as reported in Informa Research Services Top 50 National APYs, March 22, 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

0.95%

0.77%

0.54%

0.59%

0.65%

Informa Top 50 National APYs

0.20%

0.31%

0.44%

Zions Direct / National APY Difference

0.57%

0.23%

0.21%

Total Average Difference (basis points): 33

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 and corporate and municipal bonds 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 March 16, 2011 to March 22, 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 2010 Informa Research Services, Inc as a part of their Interest Rate Review – Retail. Report dated March 22, 2011.

Announcement of Yields from CD Auctions

Russell Fisher — Thu, 17 Mar 2011 15:00:53 +0000

Results for Auctions of FDIC-insured Certificates of Deposit through March 15, 2011

SALT LAKE CITY – March 17, 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 their weekly auction results. In auctions closed from March 9, 2011 to March 15, 2011, investors purchasing FDIC-insured CDs in the auctions received average yields 0.38 percentage points, or 38 basis points, higher than average yields on similar CDs as reported in Informa Research Services Top 50 National APYs, March 15, 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

0.74%

0.97%

0.62%

0.71%

0.80%

0.76%

Informa Top 50 National APYs

0.21%

0.30%

0.45%

Zions Direct / National APY Difference

0.41%

0.31%

Total Average Difference (basis points): 38

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 and corporate and municipal bonds 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 March 9, 2011 to March 15, 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 2010 Informa Research Services, Inc as a part of their Interest Rate Review – Retail. Report dated March 15, 2011.