Conversely slower growth companies like real estate investment trusts (REITs), utilities and telecom companies, which are seen as
bond proxies because they deliver a steady cash flow to investors, have a tendency to lag as rate climb.
Not exact matches
These high yielders are also known as «
bond market
proxies,»
because they are highly correlated to and behave much like fixed income assets.
We have high yield dividend equities — this is unique to Rebalance IRA — that we use a
proxy for a
bond fund
because interest rates are artificially manipulated by the government and kept artificially lower than they normally would have been if the market had set those rates by its own market forces.
And while
bond investors have suffered setbacks recently as yields have risen by more than a percentage point from their 2016 lows in part
because of concerns that tax cuts and infrastructure spending in a Trump administration could spur inflation, the Bloomberg Barclays U.S. Aggregate
bond index — a good
proxy for the investment - grade taxable
bond market — is actually up almost 2 % from the beginning of the year.
Meanwhile, investors are increasingly viewing commercial real estate as a
proxy to
bonds because apartments, shopping centers and hotels all offer stable rental incomes that are often higher than what they can earn from relatively safe debt.