The bonds were
150 basis points off
average, 2.3 standard
deviations from
the mean.in the chart so a white circle envelops it. Press the Ctrl and Shift keys
and click on the other bond so that white circles it, too. Then right-
click anywhere on your bond chart, select Two Bond Historical Spread
Analysis, and click on HS Spread Chart to analyze the two bonds in
the Spread Analysis (HS) function in a child window (FIG. 4).Fig. 4 Selecting two bonds in the FIW chart enables you to perform two-security analysis
such as charting the bonds’ historical spread.Fig. 5 Click on the Bond List tab, and the securities you’ve been charting will be loaded on the page.The difference in
the spreads of these
two bonds blew out
starting in May.Here the Relative
Value subtab opens
to display detailed
information about the
291 midstream bonds
you were looking at
in the chart.- The way FIW works across relative value tools is interactive.
In this case we’ve expanded the midstream category in our chart.
Now, to see more detail on those bonds in a list, click on the Bond
List tab and then on the Relative Value subtab (FIG. 5). - Explore the wide divergence between the Buckeye Partners
LP and Kinder Morgan Inc. bonds further by performing spread analy-
sis on them. From the chart, you can see that the BPL 4.125s have
around eight years remaining to maturity. The KMI 7.75s have about
12.5 years to maturity. Select one of the bonds by clicking on its dot
Gee is a fixed-income market specialist and Moran is an
advanced specialist at Bloomberg in New York.34