The Treasury Department auctioned $ 29 billion in seven - year notes
at a high yield of 2.952 percent on Wednesday.
The Treasury Department auctioned $ 35 billion in five - year notes
at a high yield of 2.837 percent on Wednesday.
Not exact matches
Elsewhere, the dollar held
at a three - month
high against a basket
of currencies, after having received a boost from U.S. 10 - year Treasury
yields holding near the key 3 percent level.
«We believe UST
yield will not sustainably go
higher than 3 percent,» said Handy Yunianto, head
of fixed income research
at Mandiri Sekuritas.
So there's almost more concern for locking in a long - term rate
of income than there is for just maybe catching a
higher yield at one point in the cycle in the front end.
The bonds
of iHeartMedia have long been in the basket
of «distressed debt,» meaning their prices have fallen so far to where their
yields are
at least 10 percentage points
higher than equivalent Treasury
yields.
The German 10 - year Bund
yield ended
at 0.84 percent last Friday, down from Thursday's
high of nearly 1 percent, following robust U.S. employment data.
If mortgage interest rates were
higher, paying down this debt would make more sense, but with rates
at about 4 percent, investing that money could
yield a
higher rate
of return.
Frank Del Rio, president and CEO
of Norwegian, cited four main reasons for revising its guidance, including «continued weak demand from our core North American consumer for European sailings
at a time when half
of our fleet is deployed in the region, including eight
of our
highest yielding ships.»
Investors have been selling Treasurys this month — pushing
yields higher — amid expectations
of rising inflation, which could prompt the Federal Reserve to tighten monetary policy
at a faster pace.
The
yield on the BofA Merrill Lynch High Yield Bond index rose from just over 6 percent at the end of May to 7.9 percent as of Nov
yield on the BofA Merrill Lynch
High Yield Bond index rose from just over 6 percent at the end of May to 7.9 percent as of Nov
Yield Bond index rose from just over 6 percent
at the end
of May to 7.9 percent as
of Nov. 17.
Since bottoming below zero (an «inverted»
yield curve) back
at the beginning
of this year, the combination
of higher five year
yields and BoC rate cuts have sent this
yield spread
higher.
The bid - to - cover was 2.70, while 11.57 percent
of the bonds were bought
at high yield.
If true, this should accelerate upward momentum
of Treasury
yields and the U.S. dollar — currently
at a 14 - year
high — which could dampen gold's chances
of repeating the rally we saw in the first half
of this year.
Lewis, fund's chief investment officer, spent nine years
at Citigroup as a director
of the bank's global special situations group, a $ 5 billion prop - trading group that specialized in distressed debt,
high -
yield bonds, and value equity.
For example, if you invested in a five - year CD earning 2 percent annually, and the penalty is six months
of interest if you withdraw early, you only need to stay in the CD for
at least a year to match the 1 percent
of a
high -
yield savings account.
In the European market, the oil sector has a
high dividend
yield of about 6 percent — the
highest there is — which adds up to real value, says Nick Nelson, head
of global and European equity strategy
at UBS.
These benefits would (i) largely go to developers and contractors for infrastructure projects like new pipelines that would happen even without new incentives and so be highly regressive; (ii) raise costs by failing to reach the tax - free pension funds, sovereign wealth funds and international investors who are the most plausible sources
of incremental infrastructure finance; (iii) not encourage
at all the
highest return maintenance projects like fixing potholes that do not
yield a pecuniary return for investors; and (iv) by offering credits
at an unprecedented 82 percent rate, invite all kinds
of tax shelter abuse.
«The extra reward you get in the form
of higher yields from stretching on maturity will come back to haunt you should inflation trend upwards faster than expected,» said financial advisor Manisha Thakor, director
of wealth strategies for women
at The BAM Alliance.
All in all, we believe eurozone bond
yields may move a little
higher, but any increase is likely to be capped by the ECB's ongoing level
of purchases,
at least until policymakers start to signal their next steps on monetary policy later in the year.
Achievement
of these goals was considered by the HRC as very challenging, even aggressive, given the expected modest economic growth for 2007 for the financial services industry, the impact and duration
of the on - going flat / inverted
yield curve (meaning short - term interest rates that are virtually equal to or exceed long - term interest rates, thus lowering profit margins for financial services companies that borrow cash
at short - term rates and lend
at long - term rates), potentially
higher credit losses, fewer available
high - quality,
high -
yielding loans and investment opportunities, and a consumer shift from non-interest to interest - bearing deposits.
It could be because
of various socioeconomic factors, but most say it would be
at the point where the Fed raises interest rates too
high and the
yield curve inverts.
Over time, more and more
of the fund could become invested
at this new
higher yield level, resulting in rising distributions
of income.
There are a multitude
of reasons as to why this occurs but it's a powerful enough force that many investors have done quite well for themselves over an investing lifetime by focusing on dividend stocks, specifically one
of two strategies - dividend growth, which focuses on acquiring a diversified portfolio
of companies that have raised their dividends
at rates considerably above average and
high dividend
yield, which focuses on stocks that offer significantly above - average dividend
yields as measured by the dividend rate compared to the stock market price.
While many
high -
yield interest checking accounts require you to make dozens
of monthly debit card purchases in order to earn any interest, Radius Hybrid earns 0.85 % APY on deposits
of at least $ 2,500.00 or more.
As a result, its current
yield is also
higher at about 4.7 % despite its slightly shorter duration
of 12.8.
With market volatility hitting multi-decade lows, junk bond
yields also
at record lows, the median price / revenue ratio
of S&P 500 constituents
at a record
high well - beyond 2000 levels, and the most strenuously overvalued, overbought, overbullish syndromes we define, I'm increasingly concerned about the potential for an abrupt «air pocket» in the prices
of risky assets that could attend even a modest upward shift in risk premiums.
Prior to Aozora Bank, he was
at Morgan Stanley for ten years, from 1994 to 2004, most recently as Managing Director and head
of high -
yield and distressed principal investing in Japan and non-Japan Asia.
Into the afternoon, US equities fluctuated either side
of unchanged, and the 10 - year
yield ticked up to touch its overnight
high at 3.033 %.
With Group
of Seven (G7) sovereign bond
yields at historically low levels, some income - seeking investors have turned to
higher - volatility securities like dividend - paying stocks in an attempt to capture additional income.
At that time, the 10 - year Treasury bond had a duration
of just 6 years (due to the very
high coupon payments and
yield - to - maturity available), while the S&P 500 had an extraordinarily low duration
of just 16 years.
Mark Vaselkiv, portfolio manager
at T. Rowe Price, noted that «Einstein said there were three great forces
of nature: gravity, electro magnetism, and compounded interest...
high yield is an asset class that ultimately capitalizes on the latter.
These behavioral finance influences can skew a portfolio's overall allocations toward an overemphasis
of potentially
higher -
yielding equities that in some instances may represent more downside risk than upside potential
at current valuation levels.
With rates
at historic lows, many investors have used
high - dividend stocks, rather than low -
yielding bonds, in pursuit
of income.
We invest in countries around the world
at all levels
of the capital structure — from debt (first lien bank debt, second lien loans and
high yield bonds) to undervalued equity.
At Bear, Stearns & Co., Mr. Abbott served as a Vice President in Financial Analytics & Structured Transactions (F.A.S.T) where he structured and reverse engineered complex CDO transactions, secured by a wide range
of debt products, including
high yield bonds, senior secured leverage loans, trust preferred bank loans, RMBS as well as other esoteric receivables.
Thus far in 2015, the performance
of the Dogs
of the Dow has not been particularly inspiring, with the 10
highest -
yielding Dow components
at the start
of the year up 5.0 % in February, versus a 5.7 % increase in the overall Dow and a 6.1 % jump in the remaining 20 companies that make up the Dow Jones Industrial Average.
Christina Padgett, head
of leveraged finance
at Moody's Investors Service, said liquidity concerns are not a major problem for the
high -
yield portion
of the market now, but there are challenges for the future.
At the beginning
of 2016, U.S.
high yield spreads were among the widest versus investment grade since the financial crisis.
My dividend strategy is a hybrid
of high yield and dividend growth designed to deliver
high current income with dividend growth
at a portfolio
yield of ~ 7 %.
This has left the company with a dividend
yield that is also toward the
high end
of its historical range,
at a recent 4.3 %.
As a reminder, each year's Dog pack is made up
of the 10
highest yielding Dow stocks
at the close
of the previous year.
High -
yield bonds represented by the Bloomberg Barclays High Yield 2 % Issuer Capped Index, comprising issues that have at least $ 150 million par value outstanding, a maximum credit rating of Ba1 or BB + (including defaulted issues) and at least one year to matu
yield bonds represented by the Bloomberg Barclays
High Yield 2 % Issuer Capped Index, comprising issues that have at least $ 150 million par value outstanding, a maximum credit rating of Ba1 or BB + (including defaulted issues) and at least one year to matu
Yield 2 % Issuer Capped Index, comprising issues that have
at least $ 150 million par value outstanding, a maximum credit rating
of Ba1 or BB + (including defaulted issues) and
at least one year to maturity.
These benefits would (i) largely go to developers and contractors for infrastructure projects like new pipelines that would happen even without new incentives and so be highly regressive; (ii) raise costs by failing to reach the tax - free pension funds, sovereign wealth funds and international investors that are the most plausible sources
of incremental infrastructure finance; (iii) not encourage
at all the
highest return maintenance projects like fixing potholes that do not
yield a pecuniary return for investors; and (iv) by offering credits
at an unprecedented 82 per cent rate, invite all kinds
of tax - shelter abuse.
Among them are factors I've discussed
at length elsewhere — a weaker U.S. dollar, a steadily flattening
yield curve, heightened market volatility, overvalued U.S. stocks, expectations
of higher inflation, trade war jitters, geopolitical risks and more.
Although a total
of $ 800,000 in real estate crowdfunding sounds like a lot, I view it as buying a $ 800,000 portfolio
of 12 + different properties across the country
at much lower valuations and much
higher net rental
yields compared to having $ 2,740,000 in one very expensive rental property in San Francisco that is now
at risk
of depreciating due to declining rents and new tax legislation that limits mortgage interest deduction and SALT deduction.
Business cycle risk
High yield issuers typically have riskier business strategies and more leveraged balance sheets, exposing them to greater risk
of default
at times
of a downturn in business conditions.
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.
Global monetary policy remains broadly accommodative — and in some areas more and more so — propelling equity markets ever
higher and leaving a record amount
of sovereign debt around the world (almost US$ 12 trillion by midyear)
yielding at or below zero (source: Fitch Ratings, as
of 6/29/2016).
High yield (non-investment grade) bonds are from issuers that are considered to be
at greater risk
of not paying interest and / or returning principal
at maturity.