Investors took more risk because they thought the Fed would protect them, and so they leveraged up on investments
at narrow spreads over risk - free investments in order to meet return targets.
Treasury bonds sell
at the narrowest spreads (less than 1/2 % or even less), no matter how many bonds or the direction of interest rates.
Not exact matches
In this model, the dealer will buy or sell from investors
at a relatively
narrow spread, but he has limits on how much risk he'll take.
Stock prices are
at record highs, credit
spreads are
narrow, cap rates in the real estate market are thin, you have Bitcoin and Ethereum going skyward,» said Moody's Analytics chief economist Mark Zandi.
Credit
spreads have tightened globally, and U.S. credit
spreads are
at the
narrow end of their 17 - year range against government bonds — even after a recent widening.
When yields are too low, and acceptable risk
spreads so
narrow that top - line interest revenue is increasingly marginalized, then lending is
at risk.
While these observations suggest that liquidity conditions may have deteriorated relative to those in 2005 - 06, most observers agree that bid - ask
spreads at the time had been unduly
narrow owing to market participants» search for yield in the run - up to the crisis (BIS (2005)-RRB-- an environment bearing some similarities with current conditions (BIS (2014)-RRB-.
The decline in issuance was sharper than can be readily explained by seasonality and the fall in housing loan approvals in 2004 and appears to have been driven by a fall in issuer supply rather than investor demand, given that primary
spreads have
narrowed by
at least 5 basis points over the period, to historically low levels.
Fifteen points of P / E separate energy stocks and technology stocks, the
narrowest spread between low and high P / E groups in
at least three years.
This led to quite a sharp
narrowing in the
spread in bond yields between the two countries, from around 130 basis points
at the time of the previous Statement to a low of 85 basis points in early December.
As you can see the credit
spread for JCPenney Bonds
at 769 basis points is much «wider» than the
spread for Exxon Mobile bonds
at 119 basis points (a much «tighter» or «
narrow»
spread than JCPenny).
European bond markets initially welcomed the deal made
at the July summit, although the
narrowing of
spreads for peripheral bonds over German Bunds was relatively muted, perhaps signaling a measure of skepticism among investors about the ability of the eurozone to survive in the absence of a formal mechanism that ensures the sharing of liabilities among member states.
But the situation is hardly
at an extreme —
spreads have risen from their lows in January, which was the
narrowest in four years.
The
spread between the yields on the 2 - year Treasury note and the 10 - year Treasury note
narrowed by 70 basis points from 125 points
at the start of 2017 to just 55 points
at the end of 2017.
The
spread between Australian 10 - year bond yields and comparable US yields
narrowed from 250 basis points a year ago to about 100 basis points
at present (Graph 30).
With the cash rate up by 50 basis points in late 2003 and yields on 10 - year bonds down a little over recent months, the
spread has
narrowed since early November to stand
at around 50 basis points (Graph 67).
In Eastern depictions of space, the area most distant from the viewer is
spread out as the world expands in the distance, while the area close
at hand is
narrow and confined.
Quickly take the tea towel off
spread your frosting over the sponge, scatter with blueberries is using and
at the
narrow edge as gently as you can roll the sponge up leaving it seam side down.
Most ring slings on the market are designed in such a way that the fabric
at the shoulder and back runs too
narrow, or is sewn without pleats, so that it can not
spread out generously across the back for weight distribution.
Flowers with greater male success in
spreading pollen and siring seeds across a flower patch tended toward longer and
narrower petals, Zhou reported June 26
at the Evolution 2017 meeting.
It flows faster when it was younger and the course is
narrower:
at the end of all things time has
spread and slowed, lik oil spilled on a still pond.
Since her marriage to Edward Swift, three years after the sudden death of her first husband Horace Torrington, Charlotte had changed her position
at the breakfast table in order to accommodate her new husband's needs: specifically, aiding him in the
spreading of toast and cutting of meat, owing to his having suffered the loss of his left arm
at the age of twenty - three in an unfortunate encounter with the
narrow wheels of a speeding gig, out of which he had fallen on the driveway of his then home in County Wicklow.
Valuation Informed Indexing
narrows the
spread at a slight reduction in the median balance (the middle values).
Credit
spreads have tightened globally, and U.S. credit
spreads are
at the
narrow end of their 17 - year range against government bonds — even after a recent widening.
For example, there would normally be a pronounced widening of credit
spreads at or before a bull market top, but credit
spreads remain near their
narrowest levels of the past 10 years.
John Miller, fund manager and co-head of fixed income
at Nuveen, says that the funds» performance is driven not so much by duration or yield - curve positioning, but more by yield, credit selection and bonds that have the opportunity for credit
spreads to
narrow over time.
By contrast, the
spread can run around a dollar
at times for ETFs that venture into
narrower market segments with shares costing less than $ 50.
The savvy investor who bought in 1992 and has held to 1997 has an excess
spread of 21.25 % (5 years
at 425 bps) and an appreciation from
spread narrowing of 6.9 % for a total outperformance of 28.2 % versus Canada's over five years.
i.e. the
spread of model their model outcomes is too
narrow and doesn't encompass the real world range -RCB-, This is where scientific judgment comes in — some people are better
at pattern recognition and meaningful correlation than others.
The 17 statistical contributions have a smaller median,
at 4.3 million square kilometers, and
narrower spread, with quartiles of 4.1 and 4.6 million square kilometers.
A summary of the HPPI: Owners are still estimating their homes
at higher values than the appraisal, although the
spread is now slightly
narrower.
Despite the fact that investors pushed back on aggressively priced properties, the
spread between asking and closing prices
narrowed by two basis points, and now stands
at about 26 basis points, Feeney says.
Regardless, there are many catalysts: a tight labor market, wage growth picking up, a stock market
at or near record highs, housing values rising quickly, high commercial real estate prices, low cap rates and
narrow credit
spreads.