Sentences with phrase «high yield bonds do»

It doesn't matter where Treasury yields are, high yield bonds don't care.

And here's the rub: high yield bonds do not react to yields on Treasuries, except negatively, because when Treasuries rally hard, times are not good, and high yield bonds do poorly, with yields rising.

High yield bonds do care about the stock market.

Look at the R - squareds on the regressions versus Treasuries only, high yield bonds do not have any economically significant relation ship to Treasuries alone.

High yield bonds do have some proponents.

He found that while the portfolios with high yield bonds did outperform by a narrow margin, between 0.2 and 0.5 percent per year over the long - term, they did so with significantly higher volatility than the portfolio containing only treasury bonds.

On a risk adjusted basis, the high yield bonds did not add value to the portfolio.

Not exact matches

While credit risk might seem like a bad idea with the U.S. economy still weak and the rest of the world looking equally uncertain, high - yield bonds do offer bigger returns than government and investment - grade bonds.

«What we're doing is reducing exposure to more cyclical industrial corporate credit risk around the globe — high yield bonds, bank loans, investment - grade corporate bonds,» said Collins.

I sent out to some people last Wednesday why I thought the CDS market would outperform ETF's, and that is still my view, and has a lot to do with the bonds that make up the high yield index and their rate risk exposure for some, and horrible convexity for others.

The U.S. government does not issue high - yield bonds.

Bloomberg reported Thursday that after Draghi's bold words about protecting the euro last week, markets expect him to deliver some sort of drastic action to do so and to relieve pressure on bond yields, which have climbed steadily higher for Spain and Italy.

As long - term investments, many factors that roil the stock or even broader bond markets don't affect high yield, the panelists pointed out.

«How do high - yield bonds fit into a diversified portfolios?

Stocks slide on rising rates and yield curve inversion concerns, but a recession doesn't look likely, judging by other economic data and the high - yield bond...

Higher risk bonds have had their prices bid up, and as a result they do not provide investors with as much yield as would be expected.

For example, it does not include euro bonds («reverse Yankees») that are hot in Europe, where junk bond yields are at a ludicrously low 2.35 % on average, and the high - grade yield is just above zero.

The leveraged loan market just achieved something it hasn't been able to do since 2008 — moved within $ 100 billion of the U.S. high - yield bond...

Small stocks and many international stocks don't pay much income; income from high - yield and foreign bonds may be higher than for high - quality bonds, but also more variable.

The first thing they watch when doing so is how high or low interest rates on treasury bonds with different maturities are, which is also referred to as the yield curve.

Although decades of history have conclusively proved it is more profitable to be an owner of corporate America (viz., stocks), rather than a lender to it (viz., bonds), there are times when equities are unattractive compared to other asset classes (think late - 1999 when stock prices had risen so high the earnings yields were almost non-existent) or they do not fit with the particular goals or needs of the portfolio owner.

Does not see the Federal Reserve increasing interest rates higher than the yield on the U.S. Treasury 10 - Year Bond..

As Japan's JGB market has shown for a decade, you don't need high yields to see impressive gains in bonds.

In an earlier blog post, we provided a brief survey of recent monetary policy cycles in the U.S., showing that a higher Fed funds rate doesn't necessarily affect the yield on Treasury bonds in the same way.

It doesn't mean that we won't experience inflation or higher bond yields at times, but we're likely to live in a low - yield environment for a very long while.

It doesn't help that 10 - year bond yields are still lower than the prospective operating earnings yield on the S&P 500 (the «Fed Model»), not only because the model is built on an omitted variables bias (see the August 22 2005 comment), but also because the model statistically underperforms a simpler rule that says «get in when stock yields are high and interest rates are falling, and get out when the reverse is true.»

Higher risk (higher yield) bonds tend to be closely correlated with equities which means that such bonds do not really dampen volatility or smooth out returns over time when combined with equities in a portHigher risk (higher yield) bonds tend to be closely correlated with equities which means that such bonds do not really dampen volatility or smooth out returns over time when combined with equities in a porthigher yield) bonds tend to be closely correlated with equities which means that such bonds do not really dampen volatility or smooth out returns over time when combined with equities in a portfolio.

It is true Catalonia has regional bonds, however, in comparison to the debt offered by the regional banks, it is much less liquid and it offers only a marginally higher yield that doesn't correctly reflect the riskiness of the bond or the rating.

Although longer - term bonds offer higher yields, they don't necessarily offer enough of a return premium to justify the higher risk when compared to short - term bonds.

While equities are the largest portion of their portfolio, they also do high yield bonds, mortgage home loans, farmland, etc..

These stimulus measures have driven bond yields in Europe and Japan lower and bond prices there higher, and could continue to do so (source: Bloomberg).

Remember, as bond yields rise, bond prices fall, as do the prices of bond proxies such as utilities, REITs and other high - yielding stocks.

These bonds have done little in 2015 due to the low yields of these high quality and often short term bonds.

Historically, stocks do tend to trade at higher valuations when bond yields are lower.

High - yielding bond proxies did not offer downside protection in the February stock rout.

Many bond managers like to own RMBS for its high credit quality, liquidity, and attractive yields, but the problem is this: when interest rates move, the RMBS does what you don't want to see happen.

A second reason to be cautious about high - yield bonds is that they don't provide much stability in a portfolio when you're likely to need it most.

More importantly, this is providing an example of how bonds often are not correlated with stocks (they don't move up and down together), thus giving us the diversification benefits of including the fixed - income asset class in our portfolios, while providing a higher yield and higher expected return than cash.

If rates rise and the economy slows, the areas of the bond market that have done well lately, like higher - yielding bonds, could come under pressure.

Investors seeking income can find stocks with reasonable yield (not too high, since you do not want a bond - equivalent) and good fundamentals.

Higher rates of inflation and rising levels of correlations between the changes in bond yields and stock yields don't sound like a good combination, and it turns out that they're not.

BTW — I heard James Grant speak last week, and he is bearish on money and bullish on high yielding corporate bonds, but I du n no — that looks like threading a needle.

Stocks and high yield bonds tend to do well after the first day of the new year.

However, the interest rate isn't necessarily the same thing as some bonds may have higher yields do to the potential for defaults like junk bonds for example.

This fund has been around since 2007, though it didn't start tracking the RAFI High Yield Bond Index until last August.

So I don't see direct lending by the Fed, or buying high yield bonds, or offering protection on baskets of bonds as wise moves.

High - yield bonds did not sell off quite as much, as the shorter duration (4.97 years) index dropped by only -0.09 % for the day as measured by the S&P U.S. Issued High Yield Corporate Bond Iyield bonds did not sell off quite as much, as the shorter duration (4.97 years) index dropped by only -0.09 % for the day as measured by the S&P U.S. Issued High Yield Corporate Bond IYield Corporate Bond Index.

In particular, they won't have to invest in high yield bonds if they don't wan na.

If appetite for high yield bonds continues to moderate, this is indicative of a dampening in risk appetite, a scenario that does not favor small cap names.

But I'd be wary of venturing, as some investors seeking higher yields do, into high - yield, or junk, bond funds, as they're generally more volatile than investment - grade funds and don't hold up as well in periods of economic and market stress.