Zions Direct Announces Auction Results

. August 7, 2010 . 0 Comments

Zions Direct (http://www.zionsdirect.com), the online broker-dealer that allows its customers to purchase FDIC-insured certificates of deposit, municipal bonds and corporate bonds in its daily web-based auctions, announces their weekly auction results. In auctions closed from July 26, 2010 to July 30, 2010, investors purchasing municipal bonds in the auctions received average tax-exempt yields 0.81 percentage points, or 81 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 110 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 (http://www.auctions.zionsdirect.com). Since February 2007, Zions Direct has auctioned over 675 million dollars in more than 1,500 fixed-income auctions.

“Bidding on bonds and CDs through an auction process is the latest and, we believe, most innovative method for pricing these investment securities,” said W. David Hemingway, Chairman of Zions Direct. “The phenomenal success of Internet auctions leads us to believe that the market is ready to accept a similar model for securities, and, so far, our auction participants agree.”

Category: Online Auctions

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