As global bond yields fall to ever - lower levels, BlackRock Global Chief Investment Strategist Richard Turnill explores the reason for the downward trend.
As global bond yields fall to ever - lower levels, BlackRock Global Chief Investment Strategist Richard Turnill explores the reason for the downward trend.
Not exact matches
«A bear market in
bonds calls for more than a
global cyclical upswing,
as not all forces that dragged
yields down over the past decades have suddenly vanished,» argued Peter van der Welle, a strategist at Robeco.
Lewis, fund's chief investment officer, spent nine years at Citigroup
as a director of the bank's
global special situations group, a $ 5 billion prop - trading group that specialized in distressed debt, high -
yield bonds, and value equity.
While many analysts were predicting
bond yields to rise this year
as global economies improve, the suddenness of the move was a large factor in the recent stock market selloff.
We believe a step - up in risk aversion has led to a structural rise in precautionary savings, further dragging down
bond yields across the curve — a trend that won't quickly change,
as we write in our
Global macro outlook The safety premium driving low rates.
They became the key income source
as low growth and excess
global savings helped push
bond yields to record lows.
Since the
global financial crisis in 2008 - 09, a combination of low inflation expectations and a
bond - buying program by the Federal Reserve have helped keep
bond yields low but they have climbed this year
as inflation has picked up and the Federal Reserve raised interest rates.
2016.04.05 RBC
Global Asset Management Inc. closes PH&N High
Yield Bond Fund to New Investors RBC
Global Asset Management Inc. today announced that
as of April 7, 2016, PH&N High
Yield Bond Fund («the Fund») will be closed to new investors...
Bloomberg's
Global Investment Grade Corporate
Bond Index sank by 4 % last year to a trough in early November, then stabilized
as high -
yield cratered further.
The pound fell 1 % after the announcement while
yields on United Kingdom government
bonds declined, aided in part by concerns expressed by the MPC that the uncertainty surrounding Brexit will continue to weigh on domestic activity, which has slowed even
as global growth has accelerated.
Central bank intervention in
global bond markets has «crowded out» many traditional fixed income investors, driving them to seek
yield and income from non-traditional and riskier asset classes such
as high
yield, emerging markets debt, leveraged loans and private credit.
But we prefer shorter - duration Treasuries,
as policy shifts that steepen
global yield curves make us cautious of longer - duration U.S. government
bonds.
BlackRock's base case for 2017 is that U.S. - led
global reflation will accelerate, bond yields will gradually move higher and returns will remain low, as we write in our 2017 Global Investment Ou
global reflation will accelerate,
bond yields will gradually move higher and returns will remain low,
as we write in our 2017
Global Investment Ou
Global Investment Outlook.
The dollar's weakness should continue in at least the very short term,
as bond yields keep on descending in the wake of QE2 and investors flock to non-dollar-denominated assets, says Marc Chandler,
global head of currency strategy at Brown Brothers Harriman, based in New York.
Over time, MFS has been a leading innovator in the asset management industry, including creating one of the first in - house research departments in the mutual fund industry in 1932, launching the first high -
yield municipal
bond fund and the first
global balanced fund, and more recently creating «outcome - oriented» products, such
as its line of target - risk, target - date, and other asset allocation strategies.
As yields go out, it lowers the collateral value of the bonds and as we were saying earlier before we began the show, Richard, the global swaps marketplace is over $ 600 trillion and at least $ 400 trillion of that is in bond
As yields go out, it lowers the collateral value of the
bonds and
as we were saying earlier before we began the show, Richard, the global swaps marketplace is over $ 600 trillion and at least $ 400 trillion of that is in bond
as we were saying earlier before we began the show, Richard, the
global swaps marketplace is over $ 600 trillion and at least $ 400 trillion of that is in
bonds.
The thesis: The
global economy was finally breaking out, inflation was firming and
bond yields would be rising
as bonds are sold.
Just
as well, since more than a quarter of JPMorgan's
Global Government
Bond Index, or $ 6.4 trillion worth of debt, was trading with a negative
yield last week.
Offering access to all areas of the
bond market, our range includes
global, major market and strategic
bond funds
as well
as specific areas such
as high -
yield and government debt.
They became the key income source
as low growth and excess
global savings helped push
bond yields to record lows.
Chinese
bonds continue to attract attention from
global investors
as they offer relatively higher
yields, what's more, Chinese
bonds also have historically demonstrated low correlations with
global markets.
As central banks move away from ultra-loose monetary policy, and the
global economic expansion matures,
bond fund managers will need to ensure their portfolios draw on a truly diverse range of sources of return and carefully consider portfolio risk if they are to generate
yield in the current market environment.
The U.S. has often led moves in
global bond yields, such
as during the «taper tantrum» of 2013 when then Federal Reserve Chairman Ben Bernanke sparked a
global bond market rout by signaling the beginning of the end of quantitative easing.
Global yields have started the new year lower,
as the
yield of the S&P
Global Developed Sovereign
Bond Index was 1.05 %
as of Jan. 5, 2015.
Contrarily,
as part of the S&P
Global Developed Sovereign Inflation - Linked
Bond Index that measures the performance of the inflation - linked securities market, the S&P Japan Sovereign Inflation - Linked
Bond Index rose 3.84 % YTD, see Exhibit 3, and its
yield - to - maturity has also shifted from negative territory to 0.648 % in the same period, which is a level last seen in early 2012.
The Templeton
Global Bond Fund has demonstrated a particular knack for picking sovereign
bonds offering decent
yields in strengthening economies, and may take sizeable positions in diverse currencies such
as the South Korean won or Mexican peso.
At the end of November, the index is trading at a
yield of 6.8 % compared to developed market debt, proxied by the Barclays Capital
Global Aggregate
Bond Index, which is offering a scant 1.6 %, also
as of the end of November.
The VanEck Vectors
Global Fallen Angel High
Yield Bond UCITS ETF is designed to enable investors to benefit from temporary misvaluation
as a result of credit rating downgrades.
During the year, municipal
bonds enjoyed being one of the «risk off» asset classes and
as low and negative
yields permeated the
global bond markets municipal
bonds became a source for incremental
yield over other options.
As a comparison, the
yield - to - maturity of the S&P
Global Developed Aggregate Ex-Collateralized
Bond Index (USD) and the S&P 500
Bond Index were 1.41 % and 3.28 %, respectively.
Particularly in this
global low - to - negative interest rate environment, Asian
bonds are attractive,
as the theme of
yield hunting continues.
Nevertheless, Chinese
bonds continue to gain traction among
global investors
as they offer higher
yields than the
bonds from other major markets.
Q: Two funny article titles today: WSJ «
Global Bonds Swoon
as Investors Bet on Inflation, Growth» and Bloomberg «Market Euphoria May Turn to Despair if 10 - Year
yield Jumps to 3 %».
US dollar continues to grow strong against major
global currencies
as bond yields hit new high during yesterday's trading session.
As US dollar index hit a 5 month
Each set portfolio usually includes core asset categories that include investment - grade
bonds, stocks (Canadian, U.S. and
global) and sometimes also other asset categories such
as real estate investment trusts, emerging markets equities and high -
yield bonds.