Higher
yielding bonds via PIMCO 0 - 5 Year High Yield Corporate (HYS) as well as iShares iBoxx High Yield Bond (HYG) are floundering in the basement.
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.
The consent, from more than 97 percent of senior secured bondholders, follows similar approval from senior banking lenders and from holders of its 1.3 billion euros of high -
yield bonds issued
via Lighthouse International Company SA, a unit of Seat PG.
Central banks initiating «short volatility positions»
via QE have dampened long - term sovereign
bond yields, which crowded out private capital and induced investors to «find something else to do» by buying more esoteric assets
Quantitative easing is a process
via which the Fed purchases mortgage - backed securities (MBS) and other
bonds in the open market in order to lower
bonds yields and everyday mortgage rates.
Property has
bond - like qualities, in that it represents a solid asset that produces an income
via rents, where the
yield rises as the price falls and vice-versa (provided the rental income doesn't fall, of course).
The biggest change is a doubling of the exposure to high -
yield bonds (
via XHY and XHB), from 18 % to more than 37 %.
If you've been following our tax - time chart series, you know that municipal
bonds offer you the opportunity to keep more of what you earn
via an attractive after - tax
yield and provide a compelling counterbalance to equity risk.
As the following graphic from FactSet (
via Barron's) shows,
bond yields and utility share prices tend to move in opposite directions:
For the same $ 1,000, 3 %
yield bond, if the raising of interest rates — either
via a central bank decision, from inflation, a greater supply of the same security or associated / competing securities entering the market, or from a flight to other assets — brought the interest rate up to 4 %, the new price of the
bond would be $ 750 ($ 30 /.04).
More on MoneyWatch: Active
Bond Managers Fare No Better The Economy Isn't the Same as the Market Why the Concern over Negative TIPS
Yields Is Overblown When Dollar - Cost Averaging Makes Sense When Dollar - Cost Averaging Doesn't Make Sense Hear Larry Swedroe discuss current investment trends and topics every Sunday at noon on 550 AM KTRS in St. Louis or streaming
via the KTRS Web site.
I am overweight diversified high -
yield corporate debt via iShares iBoxx $ High Yield Corporate Bond ETF (HYG), master limited pipeline partnerships via JPMorgan Alerian MLP Index ETN (AMJ) and dividend equities via iShares High Dividend Equity ETF (HDV) and Vanguard High Dividend Yield ETF (
yield corporate debt
via iShares iBoxx $ High
Yield Corporate Bond ETF (HYG), master limited pipeline partnerships via JPMorgan Alerian MLP Index ETN (AMJ) and dividend equities via iShares High Dividend Equity ETF (HDV) and Vanguard High Dividend Yield ETF (
Yield Corporate
Bond ETF (HYG), master limited pipeline partnerships
via JPMorgan Alerian MLP Index ETN (AMJ) and dividend equities
via iShares High Dividend Equity ETF (HDV) and Vanguard High Dividend
Yield ETF (
Yield ETF (VYM).
The high -
yield bond market is generally considered to be best accessed
via active investing, since passive vehicles have structural constraints that can limit their flexibility and ability to deal with credit risk.