In global government
bond markets today, investors seem to be standing atop tectonic plates, which are moving slowly yet predictably, defying simple rules of thumb about risk - free investing, and rendering the last 40 years of historical data a very poor guide for making decisions about the future.
The gyrations can partly be attributed to mixed economic data, but there's also another major factor driving both stock and
bond markets today: we're still in a world where market swings, both positive and negative, are being disproportionately driven by central banks.
Bond markets today present investors with multiple challenges, including lower yields and more risk than in the past.
Prices in
the bond market today suggest that the 3 % number is a bit high, but we will use it anyway.
In 1900, the German «Mortgage Bank Act» came into effect, setting up the essential principles that govern much of the covered
bond market today.5 Since then, issuance of covered bonds in Europe and other parts of the world has grown significantly.
The move in
the bond market today was pretty violent.
She said: «As we look at
the bond market today — you are certainly getting more compensated for the interest rate risk you are taking on.
Mortgage - backed securities are the largest sector of the U.S.
bond market today.
Not exact matches
Today, emerging
market bonds, according to different groups out there, different major broker dealers, say about three quarters of emerging
market bonds are investment grade, and the
market is about a trillion and a half dollars, in terms of depth and breadth.
Still, combine the indications of the short - term
bond market with
today's 5 % GDP news and you get the sense that stock traders betting on low interest rates for longer periods of time may soon have to bail out.
Based on where
bonds are trading
today, the
market is saying about 5 % of those corporate loans will go bust, or roughly $ 35 billion worth at the six biggest banks.
Moody's has
today also placed Spain's Baa3 government
bond rating on review for possible further downgrade in order to assess the implications of several factors on the Spanish government's ability to continue to fund its borrowing requirements in the private debt
markets.
---------------------------------------------------------- Read more from Mad Money with Jim Cramer Cramer Remix: The MVPs of
today's
market Cramer's charts show shocking news on Treasury
bonds Cramer: Navigating a volatile trader's
market ----------------------------------------------------------
People complaining about how risky the stock
market is ought to take a look at the so - called safety of
today's
bond market.
These hybrid investments combine most of the benefits of both stocks and
bonds while, best of all, protecting you from some of the risks of
today's volatile equity
market.
Brian Belski, BMO Capital
Markets» chief investment strategist, says
bonds are still the main place for investors to stash money, even with
today's low yields.
yields will hit the highs on close end of the day... equity
markets setting up to be slammed tomorrow maybe but
today they have run over weak shorts in the face of rates... the federal reserve see's this and again will wonder if they are behind on hikes, strong data, major expansion in credit, lack of wage growth rising
bond yields and ballooning debt... rates will go much higher and equities will have revelations as to what that means for valuations
In
today's convertible
bond market, the key driver of returns relates to the value of the underlying equity.
Choose an article to read our views on the economy and
today's
bond markets.
OYAIB is an OK rule, but it's less useful
today with the significant shift we're seeing in the
bond market.
Malkiel (left), the Princeton economist best known as the author of A Random Walk Down Wall Street, now in its 12th edition, took to the op - ed pages of the Wall Street Journal on Tuesday, saying investors who would «pull their money out of the stock
market today to invest in
bonds are making a huge mistake.»
We see muted returns across asset classes in the coming five years, as structural dynamics such as aging populations help keep us in a low - return world, and we believe investors need to go beyond broad equity and
bond exposures to diversify portfolios in
today's
market environment.
Today one can access so many areas in the world that have
bond markets for investment.
With rates as close to zero as they've been in decades,
today's
bond market looks like a bubble to me.
Today's «Trends and Tail Risks» takes a look at the
bond market, where investor confusion in this post-crisis world is perhaps the greatest.
When I think about the fundamental reasons to invest in gold
today, I see a stock
market that is in bubble territory, serious issues in the
bond market, and many other asset bubbles (bitcoins, artwork, cannabis, real estate in many places, supercars...).
It's also interesting to examine the changing significance and dynamics of the European
bond market in general, which has almost doubled in size since 2005 to more than $ 10 trillion
today, including government, investment - grade corporate debt and high yield.
In the midst of a dramatic seven - day
bond selloff, extending from Tokyo to Frankfurt, London, New York and all
bond markets in between, Chair Yellen chose
today to add verbal fire to stoke the
bond rout.
The SEC yield reflects the average
market yield (
today) of the
bonds.
When
markets are around record highs, as stocks and
bonds alike are
today, those rising prices inevitably lead to overconfidence and complacency.
Even so, with the
market's valuations
today being cheaper than the two previous times that the S&P 500 traded at these levels — and with the yields on the two primary alternatives,
bonds and cash, being very low by comparison — this could be a great time to own companies by investing in th stock
market.
More than 70 % of the
bonds in developed -
market government
bond indexes
today have yields of 1 % or lower, as the chart below shows.
All
markets will continue to focus on the volatility in the equity and
bond markets, geopolitical events, developments with the Trump Administration, corporate earnings, oil prices, and will turn to earnings from Apple after the bell
today, and reports tomorrow on Japanese PMI, Chinese Caixin PMI, Eurozone GDP, PMI, Unemployment, US MBA Mortgage Applications, ADP Employment Change, Oil Inventories, and the FOMC Meeting Statement for near term direction.
I totally agree with you and with Buffett; nonetheless there's one question, that came to my mind regarding
market valuations: Assuming
bonds and interest rates go even lower as they are
today, at which level (pe ratio or Shiller pe ratio — or whatever metric you'd like to take) would I call the
market of
today a bubble?
this is just playing around with numbers, I know; but I would be happy reading your thoughts about comparing
bonds and stocks on the basis of pe ratios — I think that metric has it's limits; but how to deal with that, if the
market should go higher and which other metric would you take, do you take
today.
There is good rationale as to why the
bond markets are in the position they are
today; compressed spreads are the result of low rates coupled with strong demand out pacing supply for yield assets.
Especially in
today's fixed income
market, managing behavioral biases may be the most compelling reason to include
bonds in a portfolio.
Today Deutsche Bank has launched two funds that offer slightly different exposures to the non-USD-denominated international
bond market.
In
today's report, we evaluate the impact of these changes on the domestic
bond market and share our insights for investors.
However, Graham's advice for
bonds is extremely relevant
today, he warns that when
bond market yields are low, investors often look to steal an extra 1 - 2 % in yield buy purchasing low grade
bonds.
We favor a more even yield - curve exposure
today (with positions across maturities) and a more defensive (higher - quality) credit profile — as volatility and heightened credit concerns could lead to significantly wider spreads in the high - yield -
bond market.
Today three Deutsche Bank ETFs — the Deutsche X-trackers Emerging
Markets Bond Interest Rate Hedged ETF (EMIH), the Deutsche X-trackers Investment Grade
Bond Interest Rate Hedged ETF (IGIH) and the Deutsche X-trackers High Yield Corporate
Bond - Interest Rate Hedged ETF (HYIH)-- delisted from the NYSE Arca exchange and listed on Bats» BZX Exchange.
Bloomberg announced
today that RBC Capital
Markets has added Bloomberg's evaluated pricing service (BVAL) to its list of vendors that will independently verify prices on its municipal
bond holdings.
More diapers than you may realize on the
market today are made using this thermal
bonding process.
«the prospect of irrational
bond markets turning on the UK offers the only possible justification for the fiscal stance he reaffirmed
today» Which isn't even a justification.
And, of course,
bonds have been in a bull
market since 1981, leading to valuation levels
today that are hard to comprehend.
Someone who started out with a mix of 70 % stocks and 30 %
bonds when this bull
market began back in 2009 and simply re-invested all gains in whatever investment generated them, would have something close to a portfolio 90 % stocks and 10 %
bonds today.
In
today's low rate environment, the investment grade corporate
bond market in the US and abroad offers a way to pick up additional yield and diversification, while maintaining a relatively low level of risk.
Minneapolis, MN: Freddie Mac
today released the results of its Primary Mortgage
Market Survey ® (PMMS ®), showing fixed mortgage rates pulling back and following
bond yields lower after gradually moving higher over the past month.
In my prior post, I gave an overview of the income options available in
today's
bond market, going over how much yield was available from different asset classes and how to think about the risks that different
bond investments carry.