Nomura Securitiea» Siobhan Morden, head of Latin America fixed income strategy, has written about the potential for a glut of Argentina bonds, and commented this week that second - tier provinces look less
attractive than bonds issued by the Province of Buenos Aires, which includes the city of that name and is the most liquid provincial market.
If the S&P 500's earnings yield is above the 10 - year Treasury yield, the model suggests stocks are more
attractive than bonds.
«Stocks certainly look more
attractive than bonds, but the case for stocks versus other asset classes is less clear... «So while returns may compress from the outsized gains we have seen over the last several years, we remain constructive on equities.
«Stocks certainly look more
attractive than bonds,» Subramanian writes,» [but] the case for stocks versus other asset classes is less clear.»
Not exact matches
The biggest losers were energy (XLE), consumer staples (XLP) and materials (XLB), all down more
than 7 percent amid riding
bond yields — which makes dividend stock yields less
attractive and overrode other factors, like stronger oil prices and a weak dollar.
Certainly, it offers an
attractive level for longer - term investors such as pension and insurance funds to lock in a relatively decent yield, and will tempt some portfolio managers to buy
bonds rather
than equities.
More
than just tempering Gross's anti-equity remarks, the longtime advocate of buying and holding equity - based index funds and ETFs went so far as to say that «equities today are more
attractive relative to
bonds than at any other time in history.»
With the Fed no longer buying
bonds and investors expecting greater inflation, analysts say higher yields could make
bonds more
attractive than stocks.
This belief effectively subsidizes the industry because it allows banks to borrow much more cheaply in the
bond market
than they otherwise could, making equity funding proportionately less
attractive.
However, we took note of comments from famed investor Jeff Gundlach; that it is wrong to believe U.S
bonds are more
attractive than those from Europe and Japan because of currency risk.
''... though the value equation has usually shown equities to be cheaper
than bonds, that result is not inevitable: When
bonds are calculated to be the more
attractive investment, they should be bought.»
The earnings yield (earnings per share divided by the share price, or the inverse of the price - to - earnings ratio) still looks
attractive versus real (after inflation)
bond yields, meaning stocks may be cheaper
than they look in a low - rate world.
Mixed with Maryland's scarcity of large parcels and access to a large population within a day's drive, it makes the state an
attractive place for investors seeking steady returns higher
than they can find in low - interest rate
bonds.
Money market funds are essentially ultra-short-term
bond funds that offer investors liquidity — as in quick access to their cash — and a small yield that's typically more
attractive than merely parking cash in a bank savings account.
But today, their high dividend payouts make these stocks
attractive bond substitutes, and as such, they sell at much higher P / Es
than they have historically.
What top hedge funds have been buying [Hedge Fund Wisdom] Free e-book on Texas HoldEm Investing [Texas Hold Em Investing] Latest letter from Greenstone Value Opportunity Fund [Distressed Debt Investing] Citigroup (C) offers
attractive risk - reward [Greg Speicher] Video: How Berkowitz got comfortable with Citi [Morningstar] Summary of a recent talk with SAC Capital's Steven Cohen [Dealbook] How Stevie Cohen changed my life [James Altucher] Hedge funds buying more municipal
bonds [CNBC] Sum of the parts valuation of Yahoo (YHOO)[Minyanville] Buffett says pricing power more important
than good management [Bloomberg] Passport Capital sees oil prices holding up [WSJ] Bank loan funds drawing interest [InvestmentNews] For more great links, scroll through this linkfest [AbnormalReturns]
All the excess liquidity being added to Europe and suppressing
bond yields makes European equities, which trade at markedly lower multiples
than in the U.S., relatively
attractive.
Zero coupon
bonds are more
attractive than regular
bonds due to a higher yield to maturity.
Well, researchers from Rutgers University have a theory: When you're in a happy relationship, you subconsciously think that people who pose a threat to your
bond are less
attractive than they really are.
Those searching for income - producing investments may find dividend - paying stocks more
attractive than today's lower - yielding
bonds.
Most
bond investors take a buy - and - hold strategy, partially because
bonds are less liquid
than stocks but also because the income characteristics of
bonds are
attractive over the long - term.
Callable
bonds are more risky for investors
than non-callable
bonds because an investor whose
bond has been called is often faced with reinvesting the money at a lower, less
attractive rate.
The taxation of dividends is less
than interest earned on
bonds or certificates of deposit so that is one very good reason why dividends are
attractive to an investor in a taxable investment account.
Prices of
bonds in mutual - fund portfolios drop when rates rise, because their yields are less
attractive than those of newly issued
bonds.
One reason that a
bond can be significantly less
than face value is because people are seeking better investments elsewhere, so for example if a
bond doesn't mature for another 10 years, that 20 % increase in face value isn't very
attractive when compared to say leaving your money in the stock market for 10 years.
At base, this looks like Vanguard's attempt to generate an active fund that's just slightly more
attractive than a broad
bond market index.
Professor Siegel states «stocks, particularly stocks paying high dividends, may offer investors a more
attractive income and inflation protection
than bonds over the coming decade.»
The flattening of the
bond yield curve in recent years meant you might pay only 1 % or 1.5 % more to lock in a long - term rate, and that made the stability of fixed rates much more
attractive than it was five years earlier.
Single - family rentals have historically offered more
attractive risk - adjusted returns by this measure
than the S&P 500 and
bonds, as outlined in the chart below:
What makes annuity products more
attractive than stocks and mutual funds, as well as taxable or tax - free
bonds, for funding IRAs is that they will not lose value.
There is a feeling that
bond yields above 3 % will make
bonds far more
attractive than equities, and rising yields could lead to a serious downdraft for equity markets.
This way, the
bond will not be any less
attractive than any other investments in the market.
Treasury Inflation - Protected Securities (TIPS) and
bonds, for example, may be taxed at higher rates
than stocks, making them a potentially
attractive choice for a Traditional IRA.
I find most individual stocks to be more
attractive than the corresponding
bonds, and the overall stock market more
attractive than the overall
bond market.
The fact that MBS investors are exposed to downside prepayment risk, but rarely benefit from it, means that these
bonds must pay an incrementally higher interest rate
than similar
bonds without prepayment risk, to be
attractive investments.
As the name suggests, the ETF holds equal amounts of provincial, federal and agency
bonds maturing in 1 to 5 years for an
attractive MER of 0.15 %, which is 10 basis points cheaper
than XSB.
Merger Funds: More Tame
Than Reputation Some investors have been turning to a mutual - fund niche that may offer an
attractive way to diversify away from the risks of stocks or
bonds: funds that engage in merger arbitrage.
Since
bonds are yielding less
than 4 %, stocks are more
attractive today for long - term investors.
As a result, I believe it makes sense to increase your equity exposure a little compared to what you might have done when
bonds were more
attractive, and to balance that by choosing conservative stocks that carry less risk
than the overall market.
This might make such investments more
attractive than other cash - generating securities, such as
bonds.
Despite typically offering lower coupon rates
than other forms of taxable
bonds, for many investors the tax benefits alone make municipal
bonds an
attractive prospect.
According to the same fact sheet, Canadian municipal
bonds offer an
attractive risk / return profile since they tend to command higher yields
than provincial or federal
bonds.
We believe commodity - linked real assets look the most
attractive after shrugging off the negative momentum of the last few years, but investors should keep in mind that these exposures tend to exhibit higher levels of volatility
than TIPS or municipal real return
bonds.
The earnings yield (earnings per share divided by the share price, or the inverse of the price - to - earnings ratio) still looks
attractive versus real (after inflation)
bond yields, meaning stocks may be cheaper
than they look in a low - rate world.
Many view I -
Bonds as more
attractive than TIPS.
When interest rates fall, newly issued
bonds will pay a lower yield
than existing issues, which makes the older
bonds more
attractive.
Bond funds typically pay monthly interest, which makes them
attractive to investors who need income more frequently, rather
than semi-annually.
This can be
attractive when your preference is for the security offered by
bonds and when 20 - year TIPS provide substantially more interest
than 10 - year TIPS.
Moreover, though the value equation has usually shown equities to be cheaper
than bonds, that result is not inevitable: When
bonds are calculated to be the more
attractive investment, they should be bought.
Thus in normal markets if
bond yields rise they become more
attractive than risky stocks, so money shifts.