Sentences with phrase «because bond investors»

That may be because bond investors have been rewarded by taking on added risk over our study period.

This is because bond investors are not demanding a high rate of return because inflation is presently low.

Not exact matches

And so what the Fed is basically saying here is that because investors are using mutual funds to invest in bonds, instead of owning the bonds, there could be a problem if investors all want to leave at the same time.

That means that losers will be investors who bought 30 - year, fixed - rate bonds, because those values will go down.

In other words, because investors can not generate a sufficient return from low - yielding bonds, they turn to stocks as their only alternative.

The move rattled investors because the sanctions require that U.S. citizens must divest of any stocks, bonds or other holdings in the targeted firms by May 7.

Hopefully fixed - income investors enjoyed the placidity while it lasted, because that all changed this past week, as corporate bonds became mired in a selloff of their own.

Most investors shy away from bonds because they yield (or return) less than equities and tend to be more complex in nature.

«Japanese investors, because they have a hard time getting ahold of those bonds, they're increasingly looking for alternatives,» said Brian Nick, chief investment strategist at Nuveen.

Treasury yields have been rising not because of rising risks but because the asset bubble in bonds is deflating, inflation is rising, and investors are demanding more yield.

Thriftiness is a virtue because costs are one of the few things that investors can control in their portfolios, particularly when stocks and bonds...

The bond rating is an important process because the rating alerts investors to the quality and stability of the bond.

And retail investors, who have poured massive amounts of money into bond mutual funds because cash had a near - zero yield, can now park money in T - bills and earn close to 2 % with no risk of loss.

Rates affect bond investments, but they also affect all other investments in some form or another because higher rates mean that investors have other options in which to invest (dividend and REIT investors know this all too well in the recent rate increase).

Many investors think of real estate investment trusts (REITs) as a distinct asset class because, in aggregate, they historically have had relatively low correlation with stocks and bonds.

That will be important to private investors, because if the central bank held itself out as a privileged bondholder, effectively passing more risk on to other bond holders, other buyers might undermine the stimulus program by demanding higher interest rates.

Finally, the Fed's easy - money policies have pushed investors into the stock market because bond yields are so low.

Kushner's 666 Fifth Avenue benefited from a highly unusual appraisal Kushner Companies» record $ 1.8 billion acquisition of 666 Fifth Avenue in 2007 didn't look that risky to the bond investors who funded it, because of a highly unusual appraisal.

Most investors experienced some financial pain during that time, but some fled both stocks and bonds and went entirely into cash because they couldn't stand watching their investments plummet.

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.

Because investors are being asked to assume this risk, high yield bonds tend to come with higher coupon rates, which can generate additional investment income.

A downgrade in the credit rating of a bond by the credit agencies can affect bond performance as well if institutional investors are forced to sell because of restrictions on the credit quality of the bonds they're able to hold.

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?

Because no one can forecast the future of the stock and bond markets, many experts recommend that investors have a balanced portfolio, for the simple reason that diversification lowers risk.

In the most recent quarter, however, the competition was less fierce because investors were pulling money from bond funds.

Existing bonds or bond fund values, however, will drop as interest rates rise because investors can get higher rates on newly issued bonds.

IRVING: I don't think investors should shun bonds just because we're in a rising rate environment.

As you will see, it was actually a two - step tango to income - generating nirvana despite — or actually because of — the sheer terror that gripped even corporate bond investors in those days.

That's because investors who buy bonds are looking for the best rate with the lowest return.

If the stock market happens to crash around the time you are ready to retire, a too true fact for many in 2008, the bond investor doesn't have to worry because his money is safe.

Their cost of capital is a function partly of low interest rates and part of the implicit share price is a function of the fact that investors have looked at equities for dividends rather than bonds for yield because the bond market is so expensive.

Because a bad outcome for a bond investor is that the company to which he has loaned money goes under and he loses everything.

, but I think it's a mistake for risk averse or diversified investors to completely give up on high quality bonds because they're worried about poor returns from low yields.

That's because the economy is heating up, and that creates concern about inflation and causes bond investors to demand higher interest rates.

The investor should note that vehicles that invest in lower - rated debt securities (commonly referred to as junk bonds) involve additional risks because of the lower credit quality of the securities in the portfolio.

We value investors argue that fixed - income investments are risky and artificially overpriced because of government intervention in the bond market.

It's partly because of that volatility that fixed - income investors need to reassess their commitment to bonds.

Edelman says that many investors have piled into long - term bonds and high yield debt because they come with higher yields.

Although he says he is not sure whether the market will suffer $ 10 billion or $ 30 billion in defaults, he is certain that there will be a panic at the margin, and Muni bonds from the highest - rated on down will fall, in part because other investors tend not to step to invest.

Because the 10 Year Treasury Bond sits in the middle of this spectrum, it gives an indication of how much return investors require to tie up their money for 10 years.

Because weak job growth may indicate a slowing U.S. economy, investors poured into the relative safety of the bond market.

A larger bond market means that disintermediation can happen at a greater pace because there are more international investors interested in the market as it gets bigger.

Because the changes in tax law may not affect all investor classes equally and may be different depending on the state in which the investor is located, the effect of these changes on demand for tax - exempt bonds and required investor yields is still being determined.

This is because investors are worried about rising interest rates, something that makes investment in utilities less attractive compared to bonds and other high yield stocks.

Inflation is bad for mortgage rates because it eats into investor returns on fixed - rate investments like mortgage bonds.

And therefore, those are the sorts of concerns, clearly as bond investors we have to have in the back of our mind because while we're still very much supported by central banks continuing to buy government bonds, the Fed [US Federal Reserve] has announced that it is beginning now to not only end the taper, that ended some time ago, they are potentially selling bonds back into the market.

Loko - Invest's Kirill Tremasov said the biggest danger of the new sanctions might be in scaring foreign investors off Russian OFZ treasury bonds, popular in the West because of their high yields.

-- Retail investors buying municipal bonds may overpay for their trades because brokers aren't always required to disclose their commissions, according to a member of the U.S. Securities and Exchange Commission.

Because of its special relationship with the United States, US investors got favorable tax treatment when buying Puerto Rican government bonds.

This is important because, as Jean demonstrated, there is a link between global savings and the U.S. term premium, i.e. the extra rate investors receive for investing in long - term bonds.