Higher Yielding Bonds Have Outperformed the MMD AAA Benchmark, Tobacco Bonds Have Fared Even Better

According to Thomson Reuters MMD, 10yr and 30yr BBB rated Revenue bonds have outperformed the MMD AAA benchmark curve by 20-25bps since late 2016.  The chart above depicts MMD’s BBB Revenue 10yr and 30yr maturities spread to the MMD AAA.  Meanwhile bonds such as cusip 38122NYM8 have outperformed the MMD AAA by as much as 50bps over the same period in secondary trading.

The MMD AAA is the US Municipal Bond Yield Benchmark used to measure price and rate movements.  For more credit and rate research sign up for a free TM3 trial here or email clientservice@tm3.com for more information.