Fort Walton Beach Council agenda — 08-27-13--regular — reading text

1 fre maxmax 11% 11% 11.11. 1111 1111 r,r, 3r.% 3r.% << aWaW aa 55 41f41f SourrestSulSourrestSul RbealRbeal Sur,Sur, M— M— l", RelvnsRelvns aeae titi 66 PatlLalPatlLal Pa.Pa. 14::.14::.  The Market EnvE' '' U. S. Dollar Intematlonal Index Attribution 8 Country Detail N. 1JUn] aA'- Cmsumv PSCMImry 117% 1 308% Cmsumv 3bpin 118% 1 11 3% Energy 7. 0% rr,.gyN Lve 0. 91 R0. 1% IribmElY¢ 1. 1% Inbrmallm ishntlmy 4 rl IB 0% 40% AS% 20M Ttlsdnmunl[ dlm Bmices 7dWW 5. R% 33% 131% WP4 3B% 4. 11 IR% C ay tp 5% 1R% 3B5% allp taaa 1BB% EnegyEnMy ID1%Bd% bJ% 40% FeiTdfb mIN Lae B. 0% 1. 0% R6 ]% IIgp T4 Inlwmatim m Txnntl o3y 6.1 8% 34% 11 % 16.TB% N.e[- anmunl[ allm 5wlcc 5. 6% 20% 8<% WYBm 3. 5% 0. 3% 361 Lmsumer Clscr9'mey B. 3% 31% 09% rmeumm smaae a[ x a.sx nB% EIMY 114% 11, 0% 8B% FUe3N p1tlLae W 15% Inp G3% B.1% IlB% InMm. etim 7a1ntlmY 14.)% 39% 1311 MesWV 9. 5% 18. 5% Tdecpnmunlfallm Bsrrlcm 7 O. 11 T% UWtlf 3a% 1a1% 1% 3% lN[ SCrare: MSCI CbCal InOex Monts Re4vns a'e gorse l p. MM  The Market Env 8.34 Domestic Bond Sector & BroadlGlobal Bond Market Performance As . 1 1— Is. as Fixed income markets experienced broatl declines in the second quarter of Quarter Performance tt 2013. The sell -of was In response to comments from Fed Chairman Ben Semanke that fueled speculation the FOMC will reduce or' un er its bond OO purchases later in the year The declines In the mallet were broad Wood 00 and covered all mi and credit levels. As a result, global bonds, as measured by the Bentleys Mobverse Index, fell 2 ] %. Domestically, the Barclays Aggregate Bond Index fell 2. 3 %. taxF Returns across investment grade sectors ranged from a 7. 1 % decline in 11. 5. nnessu TIPS to a mom modest decline of 1. 9% in the Treasury all securitized MoTyage toto MSS, ASS, CMBS) areas of the market. Within investment grade corporate bontls, performance across industry ComoreteTIPlSG groups was strongest within financials as they outperformed industrials and utilibes by ID and 121 bps respectively. Y0Y0 CC The trend of low quality bonds outperforming high quality reversed as losses cased dawn the investment grade credit spectrum. The only exception to the trend change was high yield, which exceeded all investment grade ICin rrimNlI Ageat "r VS YY Muv+ erse credit groups. Interest rates on longerdated bonds rase dramatically during the period 1 - Year Performance while rate increases In the shorter maturities were more muted. Along the Treasury curve, the 2- and 10 year Treasuries rose 11 and 65 bps l7l7 respectively. As a result the shorterduration Barclays Intermetliate Band N Index outperformed the brger duration Aggregate Index by 50 bps. mm Over the past twelve months, copoate bonds have easily outpaced C. Treasury and mortgage securities generating a positive return ve I., Mall negative returns for the other sectors. Within corporate bonds, the strong 1 is 33 credit rally in 2012 ral hart in high yield being the big ' winner" as the asset 00 class bested Investment grade credit by 810 bps ( B 5% , S 1 4 %). International bontls, as asured by the Barclays Global Aggregate as D. S., continued to sell oft falling 3 l fir during the second quarter The 3. 1 % drop CorMMBayTwreaTlesPuarISey marked the third wnseMive quarter of negative returns for the benchmark Reerryare On a trailing mneyear basis, International bonds lag their domestic ntermMare Ads counterparts by 260 bps ( JA %va. 01 %). Gmml AW a VS EE cc p•p• aa II usus 7 err.err. poxpox 2D%2D% aoxaox r6,r6, aoxaox tamtam So— mirdsys csu., rive  The Market Env Market Rafe 8 Yield Carve Comparison During the second