Sentences with phrase «with equity yields»

Not exact matches

For, with long - term taxable bonds yielding 5 percent and long - term tax - exempt bonds 3 percent, a business operation that could utilize equity capital at 10 percent clearly was worth some premium to investors over the equity capital employed.

With equity valuations at historic highs and government bonds barely eking out a return, junk bonds offer solid yields at a good price, he reasons.

With bond yields so low, it doesn't cost companies much to borrow money to repurchase equity.

The market's price action since late January hasn't been inspiring, and with bond yields up, commodity prices higher and sharp price moves among equities, it might be time to break out the bear suit.

Bonds have never been a part of my portfolio given the historical lower yield when compared with equities.

In essence, investors who reinvest their dividends accumulate more shares during stock market collapses as the dividend yield expanding allows them to gobble up more equity with each dividend check they shove back into their account or dividend reinvestment plan.

During times of recession the economy is stimulated with low interest rates and once they get low enough, the yield on bonds and other fixed investments becomes so unattractive that money starts to flow into equities.

Trading across U.S. government bond maturities was range - bound on Wednesday, with yields little changed in spite of gains in the equity market in the last few sessions.

A high quality muni - bond portfolio can yield close to 4 % tax free, with inflation essentially not existent and equities at an all time high I'm curious if there is a flaw in my logic?

To the extent that lower Treasury yields are even weakly associated with higher equity valuations, recognize that this effect is also expressed over time as lower subsequent stock market returns.

I side with Ben in the sense that if one is trying to exploit negative correlation between equities and Treasuries, the yield is a secondary point.

Our Global Market Strategies segment, established in 1999 with our first high yield fund, advises a group of 46 active funds that pursue investment opportunities across various types of credit, equities and alternative instruments, including bank loans, high yield debt, structured credit products, distressed debt, corporate mezzanine, energy mezzanine opportunities and long / short high - grade and high - yield credit instruments, emerging markets equities, and (with regards to certain macroeconomic strategies) currencies, commodities and interest rate products and their derivatives.

The investments are subject to the volatility of the financial markets, including that of equity and fixed income investments in the U.S. and abroad, and may be subject to risks associated with investing in high - yield, small - cap, and foreign securities.

This is especially true on the downside because high yield investors typically are «privy» to bank credit information — trust me, this is true, as our high yield desk was next to the bank debt trading desk and we were very friendly with each other — and can see when corporate numbers are deteriorating well in advance of equity analysts and investors.

We have viewed a 10 - year Treasury yield range of 3.50 - 4.00 % as a more challenging level for equity headwinds than a market environment with 3.00 % 10 - year Treasury yields.

The fund can also take a position in 0 - 3 month T - bills should the 5 - year note become too volatile, too correlated with equity, or too low - yielding (such as in a flat or inverted yield curve).

The early weeks of 2018 were full of twists for financial markets, with a rapid rise in bond yields leading to a short, sharp sell - off in equities.

Both valuations and consumer sentiment may be at high levels, but with stable real yields, rising productivity and «normalised» valuations, the equity outlook is not necessarily negative — as long as economic growth continues.

Under the extreme stress of 2008, bonds behaved like equities, with a sudden spike in yields and recovery within a year.

However, the yields of Treasuries are paltry while credit instruments like high yield bonds exhibit equity - like risk, albeit with potentially higher yields.

When an individual without financial sophistication is faced with a choice between equity and fixed - income funds, international or domestic, large - cap or small - cap, high - yield or treasury bonds, they face choice - overload and the decision can be overwhelming.

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.

With yields having been so low for so long, bonds are suddenly providing some competition with equities at these higher yields levWith yields having been so low for so long, bonds are suddenly providing some competition with equities at these higher yields levwith equities at these higher yields levels.

With corporate debt markets priced for another Great Depression, High Yield Bonds are in a unique position to outperform equities given recent runups off the lows while providing a high yield income stream for years to Yield Bonds are in a unique position to outperform equities given recent runups off the lows while providing a high yield income stream for years to yield income stream for years to come.

The best framework for bonds protecting portfolio capital during equity bear markets is: average to above - average starting bond yields, with an average to above - average rate of inflation — which is set to decline in a recession - induced bear market.

If much of the investment into bond mutual funds that has occurred the last couple of years is for purposes of dampening the volatility of a portfolio — and with the 10 - Year Treasury yield at 1.8 percent it's difficult to argue for a different motivation - then it's important to think through the thesis that bonds will defend a balanced portfolio in an equity bear market in the same way they have, especially to the extent they have in the last two bear markets.

Medium Risk — Growth (M / GRW) Lower to average risk equities of companies with sound financials, consistent earnings growth, the potential for long - term price appreciation, a potential dividend yield, and / or share repurchase program.

But it is still surprisingly consistent considering these equity bear markets were of different durations, different depths, and all began with bond yields at different levels.

For example, in a world where short - term interest rates are zero, Wall Street acts as if a 2 % dividend yield on equities, or a 5 % junk bond yield is enough to make these securities appropriate even for investors with short horizons, not factoring in any compensation for risk or likely capital losses.

This type of high yield return, mixed with the lack of correlation to bonds and equities makes this an attractive alternative investment.

UBS analysts pinpointed a key abnormality in last week's correction: «a U.S. equity decline of 7.4 %, as seen over the last five working days, has historically been associated with a high yield spread widening of 75 — 80 basis points... The actual move has only been 21 basis points.»

FRA: Given the potential in Europe for being the epicentre of perhaps the next financial crisis as Peter Boockvar mentions, could we see international capital flows come from Europe and elsewhere to the U.S. markets especially as you mentioned there could be pressure on the long end of the yield curve with the movement into equities.

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 portfolio.

It also provides a decent measure of current income, with a dividend yield of 2.2 %, versus a median of 2.0 % for all dividend paying equities in the Value Line universe.

Growth in U.S. real GDP would fall 2.7 % over the three years that follow a vote, with a corresponding decline of 13.1 % in U.S. equities and a contraction of 0.53 % on the yields in U.S. corporate bonds.

Sentiment in financial markets has continued to improve over the past three months, with bond yields in most major markets rising and equity markets rallying further.

By purchasing these companies after a price decline, we find we are able to control risk in the portfolio as these investments often have less downside while offering a decent potential return.The U.S. Equity Fund seeks to invest in companies with a lower Price to Book Ratio, lower Price to Earnings Ratio and higher Dividend Yield than the S&P 500 index.

The disappearance of low - risk yield opportunities in fixed income markets has subsequently forced investors out the risk curve and into traditionally defensive equity sectors with reasonable payouts.

Is it better to sit tight with my 3 % guaranteed yield with TIAA - CREF and wait for market improvement or move some money into CREF STOCK, CREF GLOBAL EQUITIES, CREF EQUITY INDEX and CREF GROWTH?

High yield hasn't given you quite the diversification against equities that Treasuries have, but it also hasn't moved in lockstep with stocks either.

What happens if we extend the «Simple Asset Class ETF Value Strategy» (SACEVS) with a real estate risk premium, derived from the yield on equity Real Estate Investment Trusts (REIT), represented by the FTSE NAREIT Equity REITs equity Real Estate Investment Trusts (REIT), represented by the FTSE NAREIT Equity REITs Equity REITs Index?

Importantly, the relationship is nearly as bad even if these «equity premiums» are compared with the difference between the realized 10 - year S&P 500 total return and the 10 - year Treasury yield (to get a true «excess» return).

As the Fed's stimulus program appears to have «peaked» Citi warned investors yesterday to be cautious with the Equity markets; and recent price action across the Treasury curve suggests lower yields can be seen and US 10 year yields are in danger of retesting the 2.40 % area.

They first look at return correlations and then consider mean - variance portfolio optimization with global equities, U.S. Treasury bonds, U.S. high - yield corporate bonds, emerging government bonds and frontier government bonds.

I've got 12 different investments through their equity fund in cities with strong rents and high yields.

The Closing Rice Yield Gaps in Asia With Reduced Environmental Footprint (CORIGAP) aims to improve food security and gender equity, and alleviate poverty through optimizing productivity and sustainability of irrigated rice production systems.

With fully two - thirds of its money invested in domestic and foreign stocks, private equity and «absolute return strategies» (i.e., hedge funds), the New York State pension fund has a risky asset allocation profile typical of its counterparts across the country — because chasing risk is its only hope of earning 7 percent a year in a market where the most secure long - term bonds yield barely 2 percent.

However, the fund's large equity stake adds risk to the portfolio, which, with large positions in high - yield (20 %) and non-U.S. dollar denominated bonds (30 %), is already one of the multisector category's most volatile.»

With yields low and the bull market in global equities long in the tooth, advisors and institutions need new ways to seek income, risk - reduction without triggering capital gains liabilities, as well as, new potential sources of alpha and return.

With high yield, we find a low level of correlation with Treasuries, and a medium level of correlation with equitWith high yield, we find a low level of correlation with Treasuries, and a medium level of correlation with equitwith Treasuries, and a medium level of correlation with equitwith equities.