Not exact matches
In January, Miller said a rise in the 10 - year Treasury
yield above 3 percent «will propel stocks significantly higher, as money exits
bond funds for only the second year in the past 10.»
The Fed's low interest rate policy has driven more and more money into
bond funds as investors search
for higher
yields.
With
bond yields globally in the dumps, Singapore's wealth
fund GIC is looking at unconventional sources
for fixed income returns, Liew Tzu Mi, GIC's chief investment officer
for fixed income, said on Thursday.
The SPDR Barclays High
Yield Bond fund gathered more than $ 1.1 billion, or about half its total
for the year, while the iShares iBoxx $ High
Yield Corporate
Bond took in $ 603 million, pulling it out of negative territory
for the full year.
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.
For instance, Morningstar found that passively managed target - date
funds tend to have fewer holdings in high -
yield bonds and Treasury inflation - protected securities than their actively managed counterparts.
These mutual
funds have promised higher
yields and better returns than
bond - only
funds, and
for the most part they have delivered.
Certainly, it offers an attractive level
for longer - term investors such as pension and insurance
funds to lock in a relatively decent
yield, and will tempt some portfolio managers to buy
bonds rather than equities.
I invest in
bond funds VBLTX and VWEHX
for the higher long term
yields.
If you are invested in
bonds or
bond funds, make sure that the objectives, maturity length,
yield and credit ratings make sense
for your particular goals and circumstances.
Elsewhere, at the single country and asset class
fund levels, High
Yield Bond Funds recorded their ninth consecutive outflow while Inflation Protected
Bond Funds took in fresh money
for the 10th time in the 11 weeks, year - to - date.
iShares S&P ® / TSX ® 60 Index
Fund («XIU»), iShares S&P / TSX Capped Composite Index
Fund («XIC»), iShares S&P / TSX Completion Index
Fund («XMD»), iShares S&P / TSX SmallCap Index
Fund («XCS»), iShares S&P / TSX Capped Energy Index
Fund («XEG»), iShares S&P / TSX Capped Financials Index
Fund («XFN»), iShares S&P / TSX Global Gold Index
Fund («XGD»), iShares S&P / TSX Capped Information Technology Index
Fund («XIT»), iShares S&P / TSX Capped REIT Index
Fund («XRE»), iShares S&P / TSX Capped Materials Index
Fund («XMA»), iShares Diversified Monthly Income
Fund («XTR»), iShares S&P 500 Index
Fund (CAD - Hedged)(«XSP»), iShares Jantzi Social Index
Fund («XEN»), iShares Dow Jones Select Dividend Index
Fund («XDV»), iShares Dow Jones Canada Select Growth Index
Fund («XCG»), iShares Dow Jones Canada Select Value Index
Fund («XCV»), iShares DEX Universe
Bond Index
Fund («XBB»), iShares DEX Short Term
Bond Index
Fund («XSB»), iShares DEX Real Return
Bond Index
Fund («XRB»), iShares DEX Long Term
Bond Index
Fund («XLB»), iShares DEX All Government
Bond Index
Fund («XGB»), and iShares DEX All Corporate
Bond Index
Fund («XCB»), iShares MSCI EAFE ® Index
Fund (CAD - Hedged)(«XIN»), iShares Russell 2000 ® Index
Fund (CAD - Hedged)(«XSU»), iShares Conservative Core Portfolio Builder
Fund («XCR»), iShares Growth Core Portfolio Builder
Fund («XGR»), iShares Global Completion Portfolio Builder
Fund («XGC»), iShares Alternatives Completion Portfolio Builder
Fund («XAL»), iShares MSCI Emerging Markets Index
Fund («XEM») and iShares MSCI World Index
Fund («XWD»), iShares MSCI Brazil Index
Fund («XBZ»), iShares China Index
Fund («XCH»), iShares S&P CNX Nifty India Index
Fund («XID»), iShares S&P Latin America 40 Index
Fund («XLA»), iShares U.S. High
Yield Bond Index
Fund (CAD - Hedged)(«XHY»), iShares U.S. IG Corporate
Bond Index
Fund (CAD - Hedged)(«XIG»), iShares DEX HYBrid
Bond Index
Fund («XHB»), iShares S&P / TSX North American Preferred Stock Index
Fund (CAD - Hedged)(«XPF»), iShares S&P / TSX Equity Income Index
Fund («XEI»), iShares S&P / TSX Capped Consumer Staples Index
Fund («XST»), iShares Capped Utilities Index
Fund («XUT»), iShares S&P / TSX Global Base Metals Index
Fund («XBM»), iShares S&P Global Healthcare Index
Fund (CAD - Hedged)(«XHC»), iShares NASDAQ 100 Index
Fund (CAD - Hedged)(«XQQ») and iShares J.P. Morgan USD Emerging Markets
Bond Index
Fund (CAD - Hedged)(«XEB»)(collectively, the «
Funds») may or may not be suitable
for all investors.
For the following F - series
funds, these dates were: Corporate Advantage
Fund (September 11, 2015), High
Yield Bond Fund (hedged and unhedged)(September 11, 2015), Canadian Dividend
Fund (September 11, 2015), US Equity
Fund (May 25, 2016), US Dividend
Fund (September 26, 2016), US Small / Mid-Cap Equity
Fund (October 31, 2016), International Equity Plus
Fund (May 25, 2016), Income Advantage
Fund (September 11, 2015), and Balanced
Fund (August 25, 2015).
Emerging companies While many high
yield bonds are issued by former investment grade companies in decline, the high
yield market also provides financing opportunities
for emerging companies seeking working capital
for expansion or to
fund acquisitions.
Bond fund manager who called dollar's slide says «it's not too late to move out of U.S.
bonds» Jack McIntyre of Brandywine Global says look to emerging markets
for attractive
yields on sovereign bondsJack McIntyre of Brandywine Global says emerging markets are still the place to look
for attractive
yields on sovereign
bonds.
The continent's pension
funds, meanwhile, face a tougher challenge paying
for their members» retirement, as early September saw the world's first negative -
yielding corporate
bonds, issued by French pharmaceutical firm Sanofi and German cement maker Henkel.
High
Yield Bond Funds posted outflows
for the 13th time in the past 15 weeks, with the latest redemptions the biggest since early March, while Emerging Markets
Bond Funds recorded their largest outflow since the second week of February.
The one - day loss
for many
funds, including Vanguard Total
Bond Market, iShares Core U.S. Aggregate
Bond, Pimco Total Return and Metropolitan West Total Return, while less than a half a percentage point, still amounted to more than 10 percent of their current
yield.
The world's biggest wealth
fund is
for now sticking to an overweight position in the shorter
bond maturities as the U.S. 10 - year Treasury
yield has broken through the 3 percent threshold
for the first time since 2014.
As
yields have fallen, duration, or rate sensitivity, has risen, meaning that the risk associated with a change in rates has generally risen
for most
bond benchmarks and traditional
funds.
Investors looking to balance risk and income while searching
for yield may want to consider the iShares S&P National AMT - Free Municipal
Bond Fund (MUB), the iShares Core Dividend Growth ETF (DGRO) and the iShares U.S. Preferred Stock ETF (PFF).
In addition, the SEC
yield is generally a poor guide
for the return you should expect from a
bond fund.
Master Limited Partnerships (MLPs)
for High
Yield High
Yield ETFs High
Yield Bonds Return from Closed End
Funds to Passive Income Investments
«A rush
for safe - haven
bonds around the world has sent the
yields on sovereign
bonds through the floor — meaning a fall in the regular income that pension
funds use to pay their retirees their defined benefits, sometimes known as final salary pensions.
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.
Meanwhile, Bloomberg reports that pension
funds, squeezed
for sources of safe return, have been abandoning their investment grade policies to invest in higher
yielding junk
bonds.
With a 1.05 % cash
yield and still the 10Y
bonds, the Emergency
fund would lag behind by 0.17 % p.a. (5.98 % for efficient frontier, 5.81 % for Emergency Fund) With 30Y bonds and higher yield the Emergency Fund would have lagged behind by 0.2
fund would lag behind by 0.17 % p.a. (5.98 %
for efficient frontier, 5.81 %
for Emergency
Fund) With 30Y bonds and higher yield the Emergency Fund would have lagged behind by 0.2
Fund) With 30Y
bonds and higher
yield the Emergency
Fund would have lagged behind by 0.2
Fund would have lagged behind by 0.29 %.
(However, HYG and junk
bond funds are continuing to rally as the hunt
for yield continues)
Given that Treasury
yields broke through levels that have been a fairly reliable barrier
for several years now, it wouldn't be surprising to see
bonds stage a «relief rally» here, but both
yields and market action remain unfavorable overall, holding the Strategic Total Return
Fund to a roughly 2 - year duration, primarily in Treasury inflation - protected securities.
Fidelity ® Conservative Income Municipal
Bond Fund (FCRDX) This fund, whose income is normally exempt from federal income taxes, might be appropriate for investors looking for more yield than money market funds are providing, and wanting to take a more conservative approach to both credit and interest rate risk than many other bond fu
Bond Fund (FCRDX) This fund, whose income is normally exempt from federal income taxes, might be appropriate for investors looking for more yield than money market funds are providing, and wanting to take a more conservative approach to both credit and interest rate risk than many other bond fu
Fund (FCRDX) This
fund, whose income is normally exempt from federal income taxes, might be appropriate for investors looking for more yield than money market funds are providing, and wanting to take a more conservative approach to both credit and interest rate risk than many other bond fu
fund, whose income is normally exempt from federal income taxes, might be appropriate
for investors looking
for more
yield than money market
funds are providing, and wanting to take a more conservative approach to both credit and interest rate risk than many other
bond fu
bond funds.
A standard
yield calculation developed by the Securities and Exchange Comission
for bond funds.
Ghana scooped all $ 221.4 million tendered
for a three - year domestic dollar
bond at a 6.25 percent
yield on Thursday, boosting the government's plans to explore local
funding sources, arrangers said.
With multiple
bond ETF
yield measures to choose from, it can be difficult
for investors to quickly assess what their
fund is
yielding.
One of the biggest proponents of indexing, Rick Ferri, has a post up talking about why
for muni
bonds, high
yield bonds and equity value it may make sense to move beyond index
funds.
Investors and
fund managers search
for yield, extend maturities, reach
for lower credit quality and shift assets from short term floating rate money market
funds to
bonds,
bond funds and similar investments.
Bond exchange - traded funds (ETFs) and mutual funds are generally yielding in the 2 % range for lower risk options, while higher yields can be earned from less credit - worthy bond portfol
Bond exchange - traded
funds (ETFs) and mutual
funds are generally
yielding in the 2 % range
for lower risk options, while higher
yields can be earned from less credit - worthy
bond portfol
bond portfolios.
Even if a
bond fund manager has discretion with their maturities, I might opt
for GICs over a lot of
bond funds these days because reasonably conservative, high - quality
bonds might only be paying 3 %
yields right now.
John Hollyer, global head of Vanguard Fixed Income Group, discusses the recent rise in
bond yields and what that's meant
for Vanguard's
bond funds.
With an attractive
yield advantage over comparable maturity government
bond mutual
funds of similar duration and quality, the
Fund may serve as a core holding
for building diversified income portfolios.
If you held the
bond fund for a similar ten - year period (as the duration of a single
bond), the
funds annual total returns tend to approximate the starting
yield.
The BMO Floating Rate Income
Fund,
for example, lost more than 48 % in 2008 as high -
yield bonds cratered along with stocks and real estate.
As a Wall Street Journal article pointed out, many
bond mutual
funds are reaching
for yield now.
Simply rebalancing each year between Fidelity's EM stock and
bond funds so that you end up with a 60/40 weighting in a hypothetical balanced portfolio
yields the same result
for the past 10 - and 15 - year periods.
Reported
yields for municipal
bond funds usually include a tax - equivalent
yield.
For these professionals, liquid
bond ETFs are a convenient, diversified way to hedge against rising rates and seek higher
yields, at lower cost than active mutual
funds.
And while rising rates are bad
for bonds and
bond funds in the short - term, climbing
yields can actually boost returns on a diversified portfolio of
bonds over the long haul, as interest income and proceeds from maturing
bonds are re-invested at higher rates.
Even if you are willing to accept some credit risk, and invest in something like the popular Vanguard Total
Bond Market Index
fund, the SEC
yield is only 2.05 % (2.17 %
for Admiral Shares, $ 10K minimum), still lower than the federally insured CD which has no credit risk.
(In 2008,
for example, the average high -
yield bond fund lost 26 %, not a whole lot more comforting the stock market's 37 % loss.)
Investors looking to balance risk and income while searching
for yield may want to consider the iShares S&P National AMT - Free Municipal
Bond Fund (MUB), the iShares Core Dividend Growth ETF (DGRO) and the iShares U.S. Preferred Stock ETF (PFF).
To enhance the potential
for yield, the
Fund also has a strategic allocation to international bank loans and high -
yield bonds.