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Zions Direct Announces Auction Results

April 13, 2011 - Salt Lake City, UT

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 April 4, 2011 to April 8, 2011, investors purchasing municipal bonds in the auctions received average tax-exempt yields 1.09 percentage points, or 109 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 91 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.


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 0.51% 0.64% 0.90% 1.35% 1.89% 2.54% 3.13%
AA 0.70% 0.65% 0.91% 1.43% 2.19% 2.95% 3.56%
A 0.81% 1.44% 1.80% 2.21% 3.15% 4.01% 4.38%
BBB 1.67% 1.90% 2.82% 2.67% 4.20% 5.23% 5.43%
Insured AAA-AA 0.63% 0.77% 1.15% 1.64% 2.40% 3.02% 3.50%

Municipal Bond Auction Comparison Data (auction data from

 AuctionIssuer Term Rating Yield MSRB Difference Avg (basis Yield points)Forest Park SD Michigan 1 Month AA 1.42% 0.70% 72 InsuredMcKinney, TX ISD 11 Month AAA 1.49% 0.77% 72Austin, TX Electric Utility Insured System 20 Month AA 1.98% 1.15% 83Clark Cnty SD, NV GO 2 Month AA 1.45% 0.70% 75Weatherford, TX Utility System 5 Month A 1.25% 0.81% 44Boise County, ID School District 2.5 Year AAA 2.44% 0.90% 154Phoenix Civic Improvement Corporation 3 Month AA 1.32% 0.70% 62LaFayette Township Board of Education 11 Month AA 1.50% 0.65% 85Rhode Island Clean Water Fin Auth 3.5 Year AAA 2.85% 1.35% 150Florida St Turnpike Rev 3 Month AA 1.25% 0.70% 55Georgia, Municipal Electrical Authority 9 Month A 2.72% 0.81% 191UT St Bldg Own Auth, UT Rev 3 Year AA 2.73% 1.43% 130Flagstaff, Arizona 3 Month AA 2.30% 0.70% 160Harris County Municipal Utility District 5 Month A 2.28% 0.81% 147Greensboro, North Carolina 2 Year AAA 2.38% 0.90% 148Average Difference 109

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

 2011 2012 2013 2014 2016 2018 2021Rating < 9mo 1 yr 2 yr 3 yr 5 yr 7 yr 10 yrAAA 0.18% 0.39% 0.73% 1.81% 2.82% 3.41% 4.05%AA 0.36% 0.70% 1.29% 2.42% 3.22% 4.18% 4.83%A 0.39% 0.80% 1.50% 2.32% 3.50% 4.43% 4.82%BBB 1.22% 1.14% 1.86% 2.72% 3.79% 4.57% 5.08%

Corporate Bond Auction Comparison Data (auction data from

 AuctionIssuer Term Rating Yield TRACE Difference (basis Avg Yield points)JP Morgan 4 Month A 1.44% 0.39% 105Goldman Sachs 10 Month A 1.67% 0.80% 87HSBC Finance Corp 21 Month A 2.99% 1.50% 149Credit Suisse 7 Month AA 1.46% 0.36% 110General Electric Capital 8 Month AA 1.41% 0.36% 105HSBC Finance Corp 15 Month A 2.96% 0.80% 216Vodafone Group Plc 2 Month BBB 1.62% 1.22% 40Suntrust Bank 7 Month AAA 1.75% 0.18% 157General Electric Capital 10 Month AA 1.54% 0.70% 84HSBC Finance Corp 2 Month A 0.99% 0.39% 60Verizon Inc. 1 Year BBB 1.74% 1.14% 60Du Pont 22 Month A 1.47% 1.50% -03HSBC Finance Corp 1 Month A 1.50% 0.39% 111Diamler Finance NA LLC 5 Month BBB 2.05% 1.22% 83IBM International Group 19 Month A 1.51% 1.50% 01Average Difference 91

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


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

MSRB and TRACE bond trade data displayed as weighted average yield. Municipal bond information from MSRB as of April 8, 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 as of April 8, 2011.

Corporate bond information from FINRA's Trade Reporting and Compliance Engine (TRACE) as of April 8, 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).

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.

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.

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.


Russell Fisher
Zions Direct
(801) 844-7826

Kristin Brown
Racepoint Group
Email Contact
(202) 912-4906


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