Sentences with phrase «high yield bond spreads»

Investment grade and high yield bond spreads are at record levels.

High yield bond spreads are a little tighter than they should be according to the analysis.

U.S. high yield bond spreads neared recession levels in February, as prices declined and yields increased.

Consumer confidence and high yield bond spreads corroborate the unemployment rate in suggesting that we are in the mature stages of the current business cycle.

Below you'll find the SPY and BofA Merrill Lynch US High Yield Master II Option - Adjusted Spread (a high yield bond spread index) plotted against SPY.

Not exact matches

I noted a week ago that Bernanke had essentially eased monetary policy by spurring a loosening of financial conditions via higher stock prices, lower bond yields, tighter credit spreads, and a weakening of the U.S. dollar.

In this regard, our surveillance has been closely monitoring for any signs of liquidity strains associated with the recent increases in spreads for high - yield corporate bonds, as well as for idiosyncratic events affecting particular funds in this segment, such as the events surrounding the abrupt closing of Third Avenue Management's Focused Credit Fund last December.

One of the best coincident and real - time indicators of bursting bubbles and recessions is the yield spread between US high - yield corporate bonds and the 10 - year US Treasury.

This high - yield, or junk, bond market has been getting a lot of attention lately as credit spreads have blown out.

But a continuation of favorable economic growth and low default levels — which we expect — and measured Federal Reserve tightening — which we also expect — should support more narrow high - yield bond spreads for some time to come.

The yield on the U.S. 10 year Treasury bond recently hit 9 - month highs and the 2s10s spread widened on news of the Bank of Japan trimming its long - dated bond buying program and questions around China's ongoing purchase of U.S. Treasuries (USTs) with its foreign - exchange reserves.

One of the best economic indicators, the yield curve or the spread between short and long - term bonds remains in positive territory, with the long - term much higher than the short.

This leaves us roughly in the same position that we started the year, slightly overweight to spread product, i.e., investment - grade and high - yield corporate bonds and emerging markets (more recently, we also went back to a slight overweight on commercial mortgage - backed securities).

A typical measure of credit conditions are «spreads» — the difference between the yield of 10 - year U.S. Treasury bonds and that of riskier bonds, such as high yield.

Last week, spreads on the Morningstar Corporate Bond Index, an investment - grade corporate bond gauge, and the BofA Merrill Lynch High Yield Master Index, shot higBond Index, an investment - grade corporate bond gauge, and the BofA Merrill Lynch High Yield Master Index, shot higbond gauge, and the BofA Merrill Lynch High Yield Master Index, shot higher.

Typically, a higher - rate environment will increase spreads for banks / insurers, but you're absolutely right that the 10 - year yield could stay flat, especially when the yields for government bonds of other countries are so low.

The average bid / ask spread was 29 cents (per $ 100 par value) for both investment - grade and high - yield bonds, and the average daily trading volume was $ 2.2 million ($ 2.5 million) for investment - grade (high - yield) corporate bonds.

Higher transaction costs Due to a typically large spread between bid and offer prices, and higher transaction costs associated with less liquid securities, trading high yield bonds can be cHigher transaction costs Due to a typically large spread between bid and offer prices, and higher transaction costs associated with less liquid securities, trading high yield bonds can be chigher transaction costs associated with less liquid securities, trading high yield bonds can be costly.

The BofA Merrill Lynch high - yield index is trading at roughly 600 basis points versus government bonds, but if energy, metals and mining is excluded, it's about 80 basis points less in terms of spread.

High yield (HY) spreads — the difference between the yield of a high yield bond and a Treasury note of similar duration — are down 2 percentage points from their February peak, as investors buy high yield boHigh yield (HY) spreads — the difference between the yield of a high yield bond and a Treasury note of similar duration — are down 2 percentage points from their February peak, as investors buy high yield bohigh yield bond and a Treasury note of similar duration — are down 2 percentage points from their February peak, as investors buy high yield bohigh yield bonds.

After providing double - digit returns for many years, REITs are now well off the previous highs and trade at an estimated 15 % discount to net asset value (Source: TD Securities) and yielding an average of 7 %, a spread of 2.75 % over 10 - year bonds.

Investors will therefore require a higher yield than would otherwise be the case for this bond, increasing its credit spread.

U.S. high - yield bond spreads are 34 basis points, or hundredths of a percentage point, tighter; cover spreads are 21 basis points tighter, and emerging - market credit excess returns are at 3.6 %.

High - yield bond spreads have widened, but only marginally, from historically tight levels.

After reaching a year - to - date low Option Adjusted Spread (OAS) of 378 bps on May 8, the spread for the S&P U.S. Issued High Yield Corporate Bond Index reversed direSpread (OAS) of 378 bps on May 8, the spread for the S&P U.S. Issued High Yield Corporate Bond Index reversed direspread for the S&P U.S. Issued High Yield Corporate Bond Index reversed direction.

High - yield bonds have followed suit, hitting decade - tight levels in credit spreads in October, though they have widened slightly since then.

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.

In recent weeks, the spread (or difference) between the yield of the 10 - year Treasury and a high yield bond of comparable maturity actually widened a bit, roughly 0.45 %, restoring some value in the space.

Spreads (the difference between the yield of a high yield bond and a U.S. Treasury) have come in considerably since the winter lows.

Typically, the higher risk a bond or asset class carries, the higher its yield spread.

The spread moved from 5 BP to 5.5 BP, indicating that high - yield bonds underperformed Treasuries during that time period.

I learned from a dear friend of mine who manages high yield at Dwight Asset Management (one of the largest fixed income management shops that you never heard of), that with high yield bonds, spreads over Treasuries aren't the most relevant measure for riskiness of the bonds.

I learned from a dear friend of mine who manages high yield at Dwight Asset Management (one of the largest fixed income management shops that you never heard of), that with high yield bonds, spread...

Spread curves of high yield bonds tend to invert when the Treasury yield curve is steeply sloped.

Chart 1: The S&P 500 BB High Yield Corporate Bond Index spread to the S&P 500 Investment Grade Corporate Bond Index:

The duration matched spread to Treasuries or the OAS (Option Adjusted Spread) for both the S&P U.S. Issued Investment Grade Corporate Bond Index and the S&P U.S. Issued High Yield Corporate Bond Index are tighter by 16 and 33 basis points respectspread to Treasuries or the OAS (Option Adjusted Spread) for both the S&P U.S. Issued Investment Grade Corporate Bond Index and the S&P U.S. Issued High Yield Corporate Bond Index are tighter by 16 and 33 basis points respectSpread) for both the S&P U.S. Issued Investment Grade Corporate Bond Index and the S&P U.S. Issued High Yield Corporate Bond Index are tighter by 16 and 33 basis points respectively.

Yield blindness or stated another way, the insatiable search for yield coupled with the low supply of higher yielding bonds has kept many weaker credits including Illinois from seeing higher sprYield blindness or stated another way, the insatiable search for yield coupled with the low supply of higher yielding bonds has kept many weaker credits including Illinois from seeing higher spryield coupled with the low supply of higher yielding bonds has kept many weaker credits including Illinois from seeing higher spreads.

The proximate cause of this sell - off is a reappraisal of risk in the credit markets, starting first at subprime but now having spread to the riskier parts of corporate credit, namely high - yield bonds and loans to finance buy - outs.

Vertical factor: spread of Baa bond yields over Aaa bond yields — Hypothesis: When spreads are high, stock valuations tend to be low.

When is it safest to buy high yield bonds — when spreads are tight, or when spreads are wide?

In our opinion, the so - called «spread sectors,» from high - yield bonds to non-agency mortgages and emerging - market debt (EMD), currently offer attractive levels of credit, prepayment, and liquidity risks, particularly for investors who know how to analyze these risks.

This flight to quality movement also impacted credit spreads, which widened for both investment grade and high yield corporate bonds, negatively impacting the returns of bonds in those sectors.

But last week the benchmark 10 - year U.S. Treasury bond yield jumped to a six month high around 3.75 pct, while the spread between 2 - year and 10 - year bond yields widened to a record 2.75 percentage points.

High yield municipal bond yields and relative spreads to investment grade munis have moved to lows not seen since 2008.

This is partly due to the fact that credit spreads blew out to historic highs which weighed on corporate bonds, high yield and preferreds.

The yield spread between high yield and investment grade municipal bonds is now at 265bps or 2.65 % (on March 15, 2012 the spread was 351bps).

For example, the spread between high yield junk bonds and the risk - free rate of comparable treasuries has rarely been this low.

The result: higher prices for riskier assets like equities and tighter spreads for high yield and emerging market (EM) bonds.

Since 1997, a two - factor model incorporating the Chicago Fed National Activity Index (CFNAI) and high yield spreads (the difference between the yield of a high yield bond and that of the 10 - year U.S. Treasury) explained nearly 60 % of the variation in the VIX.

Same for bond yields — better to be aggressive when rates and spreads are high, and defensive when they are low.