Of course we still have
some better yielding bonds in our portfolio, but they will expire in 2018 and 2019.
Not exact matches
So, when an economist or
bond fund manager makes an accurate forecast about Treasury
yields, his or her clients are probably doing very
well.
So, it is a very different market than it was 10 years ago, and you're going to see a lot of corporate
bond issuance as these infrastructure projects go out there, and you can capture some pretty
good yields and you know what you're buying because it's a corporate
bond.
If
bond yields rise significantly then some analysts have highlighted that they could offer a
better investment opportunity than equities.
Traders keep pushing
bond yields and the loonie higher, but Stephen Poloz and the governors still aren't convinced that
good times are back
At some point, investors who are conflating high -
yielding consumer staples stocks with
bonds or who are taking interest rate risk in long - dated Treasurys will see drawdowns as
well.
«Deflation fears have abated, which is
good, but it has pushed up
bond yields.
Exchange - traded funds that track high -
yield bond indexes have been the beneficiaries of a cash surge in recent weeks as market participants figure the central bank probably won't raise rates in 2015, and it could be
well into 2016 before anything happens.
Rising
bond yields are seen as
good for the economy, but bad for stocks.
In this regard, our surveillance has been closely monitoring for any signs of liquidity strains associated with the recent increases in spreads for high -
yield corporate
bonds, as
well as for idiosyncratic events affecting particular funds in this segment, such as the events surrounding the abrupt closing of Third Avenue Management's Focused Credit Fund last December.
As I've explained many times before, gold has historically had an inverse relationship with
bond yields, performing
best when they're moving south.
With equity valuations at historic highs and government
bonds barely eking out a return, junk
bonds offer solid
yields at a
good price, he reasons.
One of the
best coincident and real - time indicators of bursting bubbles and recessions is the
yield spread between US high -
yield corporate
bonds and the 10 - year US Treasury.
While it's
better to invest than keep money under a mattress, buying risk free securities, such as guaranteed income certificates or low -
yielding government
bonds, could actually be riskier than purchasing higher returning products, says Ted Rechtshaffen, president and CEO of Toronto's TriDelta Financial Partners.
«When the Fed was raising rates and
bond yields were moving up, traditionally defensives don't do
well, and more cyclical stocks tend to do
better and financials do
better,» he said.
But its strong
bond base positions it
well if
bond yields rebound.
As a result,
bonds, which rise in price when
yields drop, had a very
good year in 2014.
Elsewhere, most
better - rated euro zone
bond yields rose 2 - 3 bps on the day.
These mutual funds have promised higher
yields and
better returns than
bond - only funds, and for the most part they have delivered.
LONDON, April 25 (Reuters)- Worries over rising
bond yields and falling metals prices trumped
well - received earnings updates from Kering and Credit Suisse on Wednesday, sending European shares to a one - week low.
Its underlying index selects and weights its
bonds by market value, and this method
yields a portfolio that aligns
well with our benchmark in terms of credit tranches and maturity buckets, with the only notable difference being a slightly lower YTM.
One of the
best economic indicators, the
yield curve or the spread between short and long - term
bonds remains in positive territory, with the long - term much higher than the short.
There is no doubt that, based on pure, cold, logical data, stocks are the single
best long - term performing asset class for disciplined investors who are not swayed by emotion, focus on earnings and dividends, and never pay too much for a stock, often as measured on a conservative beginning earnings
yield relative to the Treasury
bond yield basis.
Also, here's a
good one on the potential for lower
bond returns using a historical period for the lower
yield environment you talked about:
So while there could be one or even five year periods where longer maturity
bonds perform fairly
well from these
yield levels, over the long - term they're likely to be a poor investment in terms of earning a decent return over the rate of inflation.
The potential counter weights that could cap the 10 - year
yield would be a negative stock market reaction that drives investors to
bonds; lower interest rates outside the U.S. that make the U.S. debt relatively more attractive, and
good demand for longer - dated securities from insurers and others.
Based on BlackRock's long - term assumptions, some of the
better return - to - risk ratios are in high
yield bonds, EM dollar - denominated debt and bank loans.
Long - term
bond yields continue to extend their hostile upward trend, while other market internals continue to diverge as
well.
Bond yields gave back their gains by midyear as
well.
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.
Cash more liquid but
bonds you'll get a
better yield and more of a flight to safety during the down times (usually).
Fears that the current crop of earnings may be as
good as it gets and that higher
bond yields will sap demand for equities, all...
Fears that the current crop of earnings may be as
good as it gets and that higher
bond yields will sap demand...
Bond yields are down slightly, credit spreads have remained
well behaved while widening subtly, and there has been limited flight to traditional perceived safe havens like the U.S. dollar or gold.
Although
bonds could potentially lose purchasing power over the long run from current
yields they can still serve a purpose in a
well - diversified portfolio.
«We are hoping «mom and pop» can do a little bit
better than the
bond market at a time of historically low
yields.»
(Eco-groups will supplement with what tools of persuasion they have as
well; just don't rely on them for wisdom on
bond yields.)
When the stock market dividend
yield yields more than a 10 - year US treasury
bond yield, it's generally a
good sign to invest in equities.
While
bond credit ratings and relative
yield can compensate an investor for the relative risk of companies to make
good on their debts, the recent past has shown this is not always the case.
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.
Even riskier high
yield bonds have held up relatively
well.
However, given that many
bond yields are
well below 4 % — and retirees tend to invest heavily in
bonds — the appropriateness of this rule has been called into question.
The economics of the Voya deal seem even
better now than on Dec. 21 when the transaction was announced given the rise in
bond yields, Belardi told Wall Street analysts.
Higher
yielding fixed income offers those higher
yields because the issuers of the
bonds have a
better chance of defaulting on their debt.
Some of the
best indicators for mortgage rate movement include the
yield on 10 - year Treasury
bonds from the government and the LIBOR — a rate that determines how much banks must pay to borrow money from each other.
This economic impact works in opposition to the interest rate risk they face: rising rates, which are bad for
bonds generally, usually accompany a strong economy, which is
good for high -
yield bonds; falling rates, which are
good for
bonds overall, usually accompany a weak economy, which is bad for high -
yield bonds.
If stocks provide a
better return with
better liquidity and
bonds provide a similar
yield with
better liquidity (and collateral), why take on the illiquidity at all?»
We expect long - term
bond yields to rise gradually over the next five years but to stay
well below historical averages.
European high -
yield bonds were the
best - performing fixed - income asset class in 2013, according to Barclays.
After providing double - digit returns for many years, REITs are now
well off the previous highs and trade at an estimated 15 % discount to net asset value (Source: TD Securities) and
yielding an average of 7 %, a spread of 2.75 % over 10 - year
bonds.