Not exact matches
Bond
investors like mutual funds and pension funds hope to buy securities with comparatively higher
yields than other
asset - backed debt that could also provide diversification benefits.
He says the actions of central banks «attempting to spark economic growth» are «severely punishing the world's savers and creating incentives to reach for
yield, pushing
investors into less liquid
asset classes and increased levels of risk, with potentially dangerous financial and economic consequences.»
Meanwhile government bond
yields, a reliable barometer of market fear, are falling to record low levels as
investors engage in a panicked hunt for risk - free
assets.
With rates at near zero in the United States, and negative in Japan and Europe, the differential is a powerful lure for carry trades, in which
investors borrow at ultra-low rates in currencies such as yen or sterling and buy high -
yielding assets such as the kiwi.
With stocks trading near all - time highs and bond
yields still relatively low, some
investors have turned to alternative
asset classes.
Treasury prices cut earlier losses on Monday, pushing
yields slightly lower, after stocks fell sharply, pushing
investors into haven
assets like government bonds.
The environment of continuing monetary accommodation — necessary to support activity and boost inflation — may lead to a continued search for
yield where there is too much money chasing too few
yielding assets, pushing
investors beyond their traditional habitats.
Treasury
yields have been rising not because of rising risks but because the
asset bubble in bonds is deflating, inflation is rising, and
investors are demanding more
yield.
The two largest funds in the segment — the $ 15 billion iShares iBoxx $ High
Yield Corporate Bond ETF (HYG) and the $ 9 billion SPDR Bloomberg Barclays High
Yield Bond ETF (JNK)-- have faced sizable
asset outflows as
investors fret over high valuations and rising interest rates.
There is no doubt that, based on pure, cold, logical data, stocks are the single best long - term performing
asset class for disciplined
investors who are not swayed by emotion, focus on earnings and dividends, and never pay too much for a stock, often as measured on a conservative beginning earnings
yield relative to the Treasury bond
yield basis.
Instead of
yield at any price,
investors wanted companies and
assets that would do better in an environment of stable or rising growth.
Should the Fed be more hawkish and raise rates in the next couple of meetings, both gold and the miners will likely underperform as
investors position towards higher
yielding assets.
Yields have an inverse relationship to bond prices and fall when
investors flock to a so - called safe haven
asset.
The Carlyle Group («Carlyle») is one of the world's largest global alternative
asset management firms that originates, structures and acts as lead equity
investor in management - led buyouts, strategic minority equity investments, equity private placements, consolidations and buildups, growth capital financings, real estate opportunities, bank loans, high -
yield debt, distressed
assets, mezzanine debt and other investment opportunities.
High -
yield bonds are in the eighth year of an investment cycle that has seen
assets under management grow threefold, to $ 300 billion, so interest among
investors remains high.
Within almost any
asset class,
investors want to know, what is the «
yield» on the investment?
Korean leaders to meet at North - South border on Friday: BBC Chinese geologists say N. Korea's main nuclear test site has likely collapsed: WaPo China air force intimidates Taiwan with military flights around island: Reuters Conservative Supreme Court justices appear to back Trump's travel ban: The Hill French president expects Trump will withdraw from Iranian nuclear deal: BBC Rising interest rates keep Wall Street on edge: CBS
Investors will focus on various inflation numbers in days ahead: Bloomberg A closer look at the 10 - year Treasury
yield's rise to 3 %: Calafia Beach Pundit T. Rowe Price's
assets under mgt top $ 1 trillion — a sign of active mgt growth: P&I World trade volume slumped 0.4 % in Feb, first monthly loss since Oct: CPB
Fear drives
investors away from higher -
yielding assets as they flock towards safer
assets, such as gold.
They automate the loan underwriting, data management and risk assessment processes and provide a platform where accredited and institutional
investors seeking high -
yield, short - term,
asset - collateralized investments can be matched with borrowers seeking more timely and consistent sources of funding for rehabbing properties across America.
This very low market volatility can lead
investors to take on more risk, and in a period of still relatively low interest rates, to «reach for
yield» — that is, buy riskier
assets than one would otherwise, in order to achieve a desired profit or savings goal.
A long period of low rates has encouraged
investors to assume greater risk in the stretch for
yield, inflating
asset prices.
For the most part,
investors cite the market's four - year climb off its 2009 lows and the Dow's record closing to the Federal Reserve's aggressive and unprecedented monetary stimulus measures, which have helped push equities higher by driving down
yields in safe - haven
assets.
Ample monetary stimulus fuelled
investors» risk appetite and boosted a search for higher -
yielding assets.
2014.10.08 RBC Global
Asset Management Inc. re-opens PH&N High
Yield Bond Fund to new
investors RBC Global
Asset Management Inc. re-opens PH&N High
Yield Bond Fund to new
investors...
2016.03.21 RBC Global
Asset Management Inc. re-opens PH&N High
Yield Bond Fund to new
investors RBC Global
Asset Management Inc. today announced that PH&N High
Yield Bond Fund will re-open to new
investors on March 28, 2016...
2016.04.05 RBC Global
Asset Management Inc. closes PH&N High
Yield Bond Fund to New
Investors RBC Global Asset Management Inc. today announced that as of April 7, 2016, PH&N High Yield Bond Fund («the Fund») will be closed to new inv
Investors RBC Global
Asset Management Inc. today announced that as of April 7, 2016, PH&N High
Yield Bond Fund («the Fund») will be closed to new
investorsinvestors...
2014.11.13 RBC Global
Asset Management Inc. closes PH&N High
Yield Bond Fund to new
investors RBC Global
Asset Management Inc. today announced the following change to the PH&N High
Yield Bond Fund...
The impact of central bank
asset purchases on the financial markets remains wholly dependent on
investor psychology, particularly the willingness of
investors to chase
yield and to ignore any risk of capital loss.
Investor demand for emerging market (EM) debt has been strong lately, as the near - term risk of trade wars has faded and income seekers have flocked to the
asset class» higher
yields.
With interest rates on low - risk investments falling to low levels in many countries,
investors have sought to maintain
yields by moving into higher - risk
assets such as corporate debt and emerging market debt.
Former Fed Governor Stein highlighted that Federal Reserve's monetary policy transmission mechanism works through the «recruitment channel,» in such way that
investors are «enlisted» to achieve central bank objectives by taking higher credit risks, or to rebalance portfolio by buying longer - term bonds (thus taking on higher duration risk) to seek higher
yield when faced with diminished returns from safe
assets.
We don't expect renewed bouts of euphoria, but we see scope for
investor optimism to lift equities and other risk
assets, and see a mild rise in bond
yields.
Today's low - to - negative interest rate world has sent
investors searching far flung corners of the market for
yield, driving flows into a range of once obscure, high -
yielding asset classes.
This skepticism about the future — even with
asset prices rising — has created a negative feedback loop, driving
investors to safe harbors such as cash, bonds, gold and
yield - generating securities thereby reducing demand, inflation and growth in an ongoing vicious cycle.
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
Given term premium suppression (via QE) reduced volatility and induced
investors to buy risky
assets to boost returns, a sustained rise in long - term interest rates would give
investors more options to achieve
yield targets, thus making risk
assets appear less attractive and ultimately erode demands for
yield and tighten financial conditions.
But when inflation is strong, as it is now, it can push the Treasury
yield into subzero territory, prompting many
investors to move into other so - called safe haven
assets, including gold.
Also because of regulations, smaller retail
investors have effectively been blocked from participating in higher -
yielding investments — namely, private equity and venture capital, whose 10 - year compound annual growth rates have averaged 11.8 and 11 percent, quite a bit more than Treasuries, equities and other common
asset classes.
Investors seeking income solely based on current
yield (with some
asset class diversification mixed in) could consider these myriad higher
yielding ETFs herein.
Central bank intervention in global bond markets has «crowded out» many traditional fixed income
investors, driving them to seek
yield and income from non-traditional and riskier
asset classes such as high
yield, emerging markets debt, leveraged loans and private credit.
Indeed, because all of this
yield seeking has driven a persistent uptrend in speculative
assets in recent years,
investors seem to believe that «QE just makes prices go up» in a way that ensures a permanent future of diagonally escalating prices.
When
investors look for less
yield and more total return (capital appreciation) in certain
asset classes, the equity sensitivity also plays an increasing role in absolute risk.
The global hunt for
yield post — financial crisis has altered the high -
yield investor base and broadened the array of vehicles used to gain exposure to the
asset class, neither of which enhance the stickiness of exposures.
A potential surprise: A rally in risk
assets prompted by
investors shifting out of cash and low -
yielding assets in search of higher returns.
The 10 - year US Treasury
yield hit the key psychological 3 % earlier this week and now threatens to extend its gains, placing risk
assets in jeopardy as
investors weigh the potential consequences.
The dollar's weakness should continue in at least the very short term, as bond
yields keep on descending in the wake of QE2 and
investors flock to non-dollar-denominated
assets, says Marc Chandler, global head of currency strategy at Brown Brothers Harriman, based in New York.
It offers a proxy for direct investment in institutional grade commercial property with its attractive
yield based characteristics for the majority of the institutional and private
investor universe which, until now, has not had a mechanism to benefit from the
asset class.
Although the
yield may jump around a bit (12.5 % at present) and is contingent on the timing of
asset sales, we expect
investors to receive a hefty high single - digit to low double - digit return for quite some time.
«The role of active
investors is to find value, but when all
asset classes are overvalued, the only way to survive is by using financial engineering to short volatility in some form... In world of ultra-low interest rates shorting volatility has become an alternative to fixed income... The global demand for
yield is now unmatched in human history.
Increased competition is compressing
yields, and encouraging many
investors to look at off - the - run
asset classes.