What
about government bonds?
Additionally, I think when you and the article talks about bonds you are only talking
about government bonds or at best bond funds.
When we talk
about government bonds, especially Canadian Government Bonds, we think of prudent safe investments.
The answer depends on whether you're talking
about government bonds or corporate bonds.
On the other hand, banks, pension funds, and others don't have much choice
about government bonds.
This will sound weird, but I am not as much worried
about government bond rates rising, as I am with credit spreads rising.
Not exact matches
The yield on Canadian 10 - year federal
government bonds have climbed to
about 1.6 % from
about 1.3 % on Election Day.
In addition to the aforementioned concerns, Golub noted fears
about whether economic growth won't meet lofty expectations and signals being sent from the
bond market, where a narrower gap between
government bond yields is kindling fears that a recession is looming.
When we talk
about bond market liquidity it's important to understand that there are lots of different «pools» out there such as high yield
bonds, munis,
government bonds, etc..
It's true that the
government will still collect revenue far in excess of what it needs to pay interest on Treasury
bonds, only
about 7 percent of total spending.
The interest rate on 10 - year
bonds was 1.79 % at the end of 2014 —
about half as much as the federal
government had to offer to get investors to buy its debt a decade ago.
There were a few dissents, but a majority of the Monetary Policy Committee also opted to create # 60 billion (
about $ 100 billion) to buy
government bonds over the next six months and # 10 billion to purchase corporate debt over 18 months.
Last fall, the B.C.
government also became the first foreign
government to issue
bonds into the Chinese RMB market, issuing a one - year - term
bond that raised
about $ 428 million Canadian.
Investment - grade corporates pay
about two percentage points more than short - term
government bonds, and they're less risky than they used to be.
He also talked
about Japan and Japanese
Government Bonds, which are up over 30 % with extremely low trading volume.
Treasury yields edge lower on Thursday, with the 10 - year
government bond hanging around its lowest level in
about seven weeks
And
government regulators and others overseeing the U.S. Treasury
bond market can be more confident
about minimizing concerns relating to uncertainty with this finding in hand.
The federal
government failed to make its case that something
about trading stocks and
bonds and derivatives has changed so fundamentally in recent times that Ottawa must now step in.
The Wall Street firm, however, says it bought the block of
bonds, priced at
about 31 cents on the dollar, through a broker and did not interact directly with the
government.
And the US
government is going to create
about $ 2 trillion of new Treasury
Bonds and exchange these perfectly good Treasury Bonds that are as good as cash (because you know the government can always print the money), they'll exchange these bonds — cash for t
Bonds and exchange these perfectly good Treasury
Bonds that are as good as cash (because you know the government can always print the money), they'll exchange these bonds — cash for t
Bonds that are as good as cash (because you know the
government can always print the money), they'll exchange these
bonds — cash for t
bonds — cash for trash.
Each day these dealers, on average, trade
about $ 700 billion of
bonds (including Treasury,
government agency, corporate, and municipal
bonds) with clients, and billions more in trades among themselves.
With funds managers holding
about 15 - 20 per cent of assets in domestic
bonds, the change in the composition of household assets has translated into higher demand for
bonds — a demand which is no longer being met by
government issues.
Consider these risks before investing: The value of securities in the fund's portfolio may fall or fail to rise over extended periods of time for a variety of reasons, including general financial market conditions, changing market perceptions, changes in
government intervention in the financial markets, and factors related to a specific issuer, industry, or sector and, in the case of
bonds, perceptions
about the risk of default and expectations
about changes in monetary policy or interest rates.
Which explains why yields on two - year
government bonds in Canada have surged in recent weeks and are now at
about parity with the U.S.
The BofA Merrill Lynch high - yield index is trading at roughly 600 basis points versus
government bonds, but if energy, metals and mining is excluded, it's
about 80 basis points less in terms of spread.
About 30 % of the development market
government bond universe already carries a negative yield, according to the JP Morgan Global Developed Government B
government bond universe already carries a negative yield, according to the JP Morgan Global Developed Government Bond In
bond universe already carries a negative yield, according to the JP Morgan Global Developed
Government B
Government Bond In
Bond Index.
Capital controls have historically been as much
about preventing foreigners from buying local
government bonds as it has been
about preventing destabilizing bouts of flight capital, and living in China, where an aggressive demand for the privileges of reserve currency status coincide with equally aggressive policies that prevent the RMB from achieving reserve currency status (and that transfer ever more of the «benefits» to the US) made clear the huge gap in rhetoric and practice.
What
about the argument that the equity - risk premium (the premium that investors demand over risk - free assets such as
government bonds) has fallen close to zero because of greater economic stability?
The fund and the
government say they will honour their other commitments, which should remove doubts
about 1MDB's last big outstanding liability, a $ 3 billion
bond which already carries a letter of state support.
Foreigners held 574 billion yuan, or
about $ 87 billion, of Chinese central
government bonds in November, official data showed, up 35 percent year on year.
While not issued by the US
Government, there is another type of
bond which is associated with
Government agencies, which you can learn more
about in our article on agency
bonds.
While spreads between yields on highly - rated corporate
bonds and
government bonds have remained above their historical averages, this continues to reflect strong demand for Commonwealth Government bonds rather than concerns about corporate credi
government bonds have remained above their historical averages, this continues to reflect strong demand for Commonwealth
Government bonds rather than concerns about corporate credi
Government bonds rather than concerns
about corporate credit quality.
Any non-federal employee earning the equivalent of an MP's salary, who wants an equivalent inflation - indexed benefit backed by the federal
government, would need to buy federal real - return
bonds — to the tune of
about 70 per cent of income!
The ECB's Draghi dropped more hints
about how the central bank could support struggling countries, suggesting it was free to buy
government bonds maturing in three years or less.
For «A» rated corporates, the spread over
government bonds of comparable maturity is currently
about 100 basis points, which is noticeably wider than a couple of years ago (Graph 32).
It will buy $ 600 billion worth of US long - term
bonds in the open market, close to 7 % of all Treasury securities in public hands, or
about the amount the debt that the federal
government will issue over that time period.
For a number of years, concerns had been expressed
about the underpricing of risk in a range of financial instruments and the associated search for yield as investors sought higher returns in non-standard financial products as the yield on more standard products such as
government bonds was deemed to be inadequate.
You have probably heard that
about half of all
government bonds globally are now trading at a negative yield.
If you think
about it, if you are long
government bonds that yield less than 1 % (or negative), you are massively short optionality.
14.50 Mario Draghi repeated the ECB was prohibited to print money to buy
government bonds when asked
about Greece.
There has been an obvious sea - adjust in sentiment in direction of federal
government bond marketplaces
about the globe, but notably in Europe.
Australian
government bonds gainedon Fridayafter the Reserve Bank of Australia (RBA) provided no hint of near - term interest rate hike, also, hinting that inflation is
about to remain low for some time.
The benefit for the
bond market in the fiscal improvement is clearly illustrated by the fact that, in the current fiscal year, the
Government's net call on the
bond market for new funds has been only
about $ 4 billion, compared with $ 14 billion two years earlier.
Using monthly levels of Moody's yield on seasoned Aaa corporate
bonds and the Dow Jones Industrial Average (DJIA) during October 1928 through February 2018 (
about 90 years) and monthly levels of the 10 - year
government bond interest rate and the stock market from Robert Shiller during January 1871 through February 2018 (
about 148 years), we find that: Keep Reading
Goldman Sachs Group Inc. would have the smallest percentage increase,
about 16 percent... Of the changes proposed in June by Treasury Secretary Steven Mnuchin, the one that would probably have biggest impact on profit is allowing banks to buy U.S.
government bonds entirely with borrowed money.
Perhaps it is with good reason, for Vic Denny, a conservative and successful investment banker with carefully combed, thinning hair, seems
about as radical offhand as a Series E
government bond.
Mr. Speaker,
Government streamlined ESLA flows to accommodate all the existing legacy debts (
about GH cents 10 billion) owed by the energy sector firms to banks and suppliers, and took steps to issue an ESLA - backed
bond to pay off these debts.
«The key points
about the recent $ 2.25 billion
bond issued by the NPP
government; the
bond was virtually participated by only two investors.
Since
governments tend to have AAA
bond ratings - the risk is
about as low as cash and so DJClayworth's answer comes into effect: Bob gives Sue cash to give to Mary.
He chronicled a number of issues, including the controversial, $ 2.25 billion
government bond, the 5 million liters of contaminated fuel and wondered why the ex-president has been quiet
about those issues.