Sentences with phrase «bond market return premiums»

The returns from the carry trade are, however, too large and consistent relative to traditional stock and bond market return premiums to be fully explained by their risk.

Not exact matches

Let's take a look at the performance relationships between the stocks and the bonds by using the S&P 500 Energy Total Return and the S&P 500 Energy Corporate Bond Index Total Return to see how the market views the equity risk premium, or in other words how strongly the market believes oil stocks will rise (equity performance) or fall (bond performanBond Index Total Return to see how the market views the equity risk premium, or in other words how strongly the market believes oil stocks will rise (equity performance) or fall (bond performanbond performance.)

Therefore, if the 20 - year Treasury bond is currently yielding 3 percent, the market risk premium indicates that you can expect a return on common stocks of approximately 8.5 percent (3 percent plus 5.5 percent).

Perhaps even more importantly, the risk premium as measured by the monthly return of the S&P 500 TR minus the S&P 500 Bond Index was negative (in other words was a discount) back in August 2017 that showed pessimism in the market, despite a positive stock market return.

Municipal bonds priced at a premium often provide the same return as par bonds that have the same credit quality and structure — with the added potential benefit of higher cash flows and lower market volatility.

Since bonds trade either at par, at a premium or at a discount, a bond's market value will have considerable effect on its return at maturity.