Sentences with phrase «against bond yields»

It also can be used to compare the whole market against bond yields... In most cases the earnings yield of equities are much higher then in risk free treasury bonds Earnings yield is basically the amount of earnings you buy for every dollars worth of...

Not exact matches

So far, though, no one is reporting any unusual outflows in the bond market, but Hamilton - Keen cautions investors against chasing high - yield products.
French bond yields widened their gap against German bunds on Tuesday morning as opinion polls showed increased uncertainty regarding who will become the next president of France.
Their declining currencies against the dollar (8 - 9 percent over the past 12 months), falling stock market values since the beginning of the year and high (India) and rising (Brazil) bond yields are reflecting their funding difficulties.
NEW YORK, Feb 5 - The dollar rose against a basket of currencies on Monday as the U.S. bond market selloff levelled off after the 10 - year yield hit a four - year peak on worries that the Federal Reserve might raise interest rates faster to counter signs of wage pressure.
Sterling fell 1 % against the dollar following the announcement, while British government bond yields hit record lows and the main share index rose by 1 %.
Until the wayward states knuckle under, the ECB will hide behind EU rules against monetizing sovereign debt and let rising bond yields keep the pressure on politicians.
When bonds yield 1.75 % for investment - grade bonds, then it's difficult to turn that into a 5 % -10 % return going forward... If he wants to argue against that, and talk about Dow 5000 and bear and bull markets, then he's welcome to, but he's pushing at windmills in my opinion, and he belongs back in his ivory tower.
Bond yields rose while stocks fell on the ECB news, while the Great British Pound stood out with a strong performance, rising above 1.40 against the USD for the first time this month after a reported «breakthrough» on the Brexit talks regarding the transition with the EU.
Because most wealthy Chinese seem to think about RMB in terms of USD or Hong Kong dollars, it is the fear that any depreciation of the RMB against those two currencies (the Hong Kong dollar is pegged to the USD through a modified currency board) greater than the couple of percentage points interest rate differential would yield less than equivalent USD or Hong Kong dollar bonds.
China's one - year sovereign bond yield has climbed 14 basis points since the devaluation, while the cost to insure the nation's debt against default jumped to a two - year high.
Below you'll find the SPY and BofA Merrill Lynch US High Yield Master II Option - Adjusted Spread (a high yield bond spread index) plotted againstYield Master II Option - Adjusted Spread (a high yield bond spread index) plotted againstyield bond spread index) plotted against SPY.
why should treasury bonds yield 1 % as against 10 %?
The new fund will reportedly focus on three strategies; using algorithms to identify attractive bond valuations, option overlays to provide protection against sudden market movements, and taking advantage of opportunities in yield curve movements.
This additional yield on a riskier credit bond is called the credit spread, and it's measured against a similar duration U.S. Treasury bond.
Yields would rise if the bond market revolted against central banks and stopped buying.
For bonds to defend against declining equity values, where do bond yields need to fall?
The extent to which the valuation of U.S. bonds is out of sync with the U.S. economy is best illustrated in the graph below in which the yield on the 10 - year government note is depicted against the Conference Board Consumer Confidence Index.
While the underperformance of high yield bonds since my post The Case Against High Yield has certainly made high yield bonds more attractive (yields went from sub 6 % to north of 8 %), I still prefer the risk / return profile of a stock / bond allocation (more hyield bonds since my post The Case Against High Yield has certainly made high yield bonds more attractive (yields went from sub 6 % to north of 8 %), I still prefer the risk / return profile of a stock / bond allocation (more hYield has certainly made high yield bonds more attractive (yields went from sub 6 % to north of 8 %), I still prefer the risk / return profile of a stock / bond allocation (more hyield bonds more attractive (yields went from sub 6 % to north of 8 %), I still prefer the risk / return profile of a stock / bond allocation (more here).
However, bond yields have been mostly driven by US developments, where bond yields appear unusually low against a background of strong growth, rising inflation and increasing short - term interest rates.
The comparison isn't against high - yield bonds, either.
Russian bond yields and the cost of insuring the country against default rose on Wednesday, as investors fretted over intensifying sanctions, the prospect of a recession and falling oil prices.
We have: • normalized the domestic yield curve • issued the country's maiden 15 - year bond in April 2017 • improved external balances, driven by higher export earnings and lower imports • improved gross international reserves to US$ 7.2 billion, equivalent to 4.1 months of imports cover • improved primarybalanceto0.3 percent surplus in September 2017 against a deficit of 1.6 percent in September 2016 • received positive sovereign rating reviews from international ratings Agencies: Fitch, B / stable; Standard & Poor, B - / positive • successfully completed the 4th IMF / ECF program review, and • achieved positive developments in the oil & gas sector — favorable ITLOS ruling, and Sankofa producing 1st oil three months ahead of schedule.
With the note against bond spread (NOB), the position a futures trader will take depends upon their perception of the yield curve.
The note against bond spread (NOB) gives traders and investors a means with which to play anticipated changes in the yield curve.
With bond yields at historical lows since July, it's important to take a step back, understand your options, and diversify your portfolio to protect against what the future holds.
BAA bond yields could be expressed as spreads against AAA yields, but the mathematical results would be the same.
But given low bond yields and modest projected returns for stocks in recent years, a number of retirement experts have cautioned that the 4 % rule might not provide the same margin of safety against running out of money as it has in the past.
He recommends against owning long - term bonds at today's yields.
In summary, preferreds appear well positioned against high yield bonds for investors looking for a combination of higher yields and lower risks.
How do these yields stack up against those of traditional bond funds?
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.
This additional yield on a riskier credit bond is called the credit spread, and it's measured against a similar duration U.S. Treasury bond.
Yet, even here, the evidence against adding high - yield bonds to one's portfolio is powerful.
the relationship between interest rates and time, determined by plotting the yields of all or as many bonds of similar credit quality (eg: Treasuries or AA - rated Corporates), against their maturities; yield curves typically slope upward since longer maturities normally have higher yields, although it can be flat or even inverted; the Fixed Income Search Results Scattergraph shows several smoothed yield curves for different fixed - income product types and credit qualities; these are based on bonds that Fidelity recognizes and are not equal to the entire universe of bonds, which is significantly larger than the number of bonds offered by Fidelity on any given day
Also, the yield spread between U.S. Treasuries and corporate bonds has tightened, meaning credit offers thinner insulation against rate rises.
IGHG and HYHG seek to hedge investment grade bonds and high yield bonds, respectively, against the negative impact of rising rates by taking short positions in Treasury futures.
The extent to which the valuation of U.S. bonds is out of sync with the U.S. economy is best illustrated in the graph below in which the yield on the 10 - year government note is depicted against the Conference Board Consumer Confidence Index.
For example, a plot of all bonds against a theoretical (usually zero coupon) yield curve show «rich» (overvalued) bonds with lower yields than bonds of similar credit and term, or «cheap» (undervalued) bonds with higher yields than bonds of similar credit and term.
Put simply, high yield bonds might not provide sufficient diversification against equity market risk.
(TheStreet.com: Aug 13, 2013) TheStreet.com presents a profile of ProShares High Yield — Interest Rate Hedged ETF (HYHG) as a fund that targets the returns of the high yield bond market while hedging against interest rate Yield — Interest Rate Hedged ETF (HYHG) as a fund that targets the returns of the high yield bond market while hedging against interest rate yield bond market while hedging against interest rate risk.
«For instance, WYDE can be used to hedge against the credit risk in high yield bonds.
When choosing a municipal bond or bond fund, first use the taxable equivalent yield chart to get an apples to apples comparison against taxable bond yields.
Perhaps there is a case of money illusion here is, stocks aren't «holding up, p / e ratio have compressed significantly over the past 7/8 years.Another point, you are comparing apples and oranges by taking s & p prices levels against yield bond spread.Try this: s & p earning yield less t - bills against the yield bond spread.
For bonds to defend against declining equity values, where do bond yields need to fall?
There are a lot of desperate pension plans looking to make up for lost time, and hoping against hope, buying dividend paying and growth stocks, high - yield bonds, alternatives like hedge funds, private equity, etc., at the wrong time.
Asian stocks edged up on Thursday as robust corporate earnings helped Wall Street quell concerns over a surge in U.S. bond yields, while the dollar hovered near three - month highs against a basket of currencies.
«For investors who believe that high yield bonds are ripe for a pullback, SJB can be used to help hedge against or to seek to benefit from potential declines.»
Agency securities are guaranteed by the U.S. government as to the timely payment of principal and interest, however this guarantee does not apply to the yield, nor does it protect against loss of principal if the bonds are sold prior to the payment of all underlying mortgages.
We prefer U.S. investment grade bonds against this backdrop of reduced compensation for credit risk but are neutral on U.S. high yield.
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