Sentences with phrase «bond spreads»

The healthy state of corporate balance sheets overall is also apparent in corporate bond spreads, which remain at relatively low levels.
High yield bond spreads are a little tighter than they should be according to the analysis.
Same for bond spreads — just because one bond has a higher spread than another similar bond, it does not mean that that bond is necessarily more risky.
The limitation of using Bond spreads as an indicator is it may take several months, even over a year for the anticipated currency change to take place.
To properly understand the concepts of bond spreads, we must first examine the mechanics of how spreads are calculated.
In basic, my bond strategy is this: analyze bond spreads relative to likely losses.
Spanish bond spreads are trading at 13 times their longer - term average.
And even if corporate defaults rise to 4 - 5 %, as many are predicting, current bond spreads would still support investing.
While bond spreads help determine loan profitability, it's not the only factor.
My post yesterday on corporate bond spreads was received well.
High yield bond spreads are a little tighter than they should be according to the analysis.
A note against bond spread (NOB) is a spread within futures contracts created by offsetting positions in 30 - year treasury bond futures with positions in 10 - year treasury note contracts.
According to Merrill Lynch data, high yield corporate bond spreads tightened for the second day in a row today, and while that doesn't seem like much, it is the first time this month that spreads tightened for two consecutive days.
If so, the FRM / VRM spread is still proportional to the BoC / 5 - year bond spread, which is still has all of the wisdom of the market with regards to future interest rates over the 5 year period.
U.S. high yield bond spreads over Treasuries have halved to about 10 percentage points from extremes of nearly 22 percentage points in December.
If the creditworthiness recovers, though gains will be reversed, and good analysts should lower their future earnings estimates when bond spreads widen, to the degree that present gains are taken.
Further, a widening of U.S. corporate bond spreads in the last couple of months has been an impending warning for equity markets.
His view is that rising bond spreads imply economic weakness, and hence stock prices should see weakness as well.
At the same time, the long June 10 - year Treasury note / Short June 30 - year Treasury Bond spread has closed in favour of the 10 - year note between February 8 and April 17 in 17 of the last 19 years!
A combination of factors, including tighter bond spreads, still low interest rates and issuers» growing level of comfort with risk retention rules, has been responsible for a more energized market, Trepp researchers report.
@Reaper: I don't know why the FRM / bond spread looks steady compared to the VRM / BoC rate spread.
«All this is likely to cause wider and more volatile government bond spreads in the coming weeks / months.
Why a barbell and not, say a ladder, with bonds spread evenly across all maturities?
Consumer confidence and high yield bond spreads corroborate the unemployment rate in suggesting that we are in the mature stages of the current business cycle.
Below you'll find the SPY and BofA Merrill Lynch US High Yield Master II Option - Adjusted Spread (a high yield bond spread index) plotted against SPY.
Martin Fridson, chief investment officer of New York based Lehmann Livian Fridson Advisors and a well - known blogger on high yield, offers a list of firms whose bond spreads have ballooned to more than 1,000 basis points over US treasury bills, pricing that indicates a one - third chance of default within a year, he says.
Within this space financial institutions with exposure to Catalonia such as CaixaBank and Banc de Sabadell will be the ones to benefit the most and, in particular, their subordinated bonds spreads are the most likely to tighten as they are most sensitive to news.
U.S. high yield bond spreads neared recession levels in February, as prices declined and yields increased.
I regressed the yields on the three and ten - year treasuries, and a triple - B corporate bond spread series on twelve month trailing earnings yields for the S&P 500.
I equate bond spreads and option volatility because contingent claims theory views corporate bondholders as having sold a put option to the equityholders.
Wall Street looks at bond spreads and P / Es.
Investor demand for CMBS was keen, which pushed bond spreads to very low levels.
With the note against bond spread (NOB), the position a futures trader will take depends upon their perception of the yield curve.
We see global corporate bond spreads tightening further, driven by our expectations for European Central Bank (ECB) asset purchases.
Corporate bond spread as a proxy for default risk by Deniz Anginer of University of Michigan, and Çelim Yıldızhan of University of Michigan (492K PDF)-- 47 pages — January 18, 2010
Bond spreads over Germany have compressed sharply in France, Italy, and Spain on reduced electoral uncertainty and firming signs of recovery.
While volatility appears to be back, high - grade corporate bond spreads have tightened to levels not seen since 2007.
Long Term Capital Management's strategy involved scanning the world for bond spreads that diverged from historical values — something known as convergence trading.
European high - yield bond spreads tightened further after US policymakers managed to avoid going over the «fiscal cliff».
Still, corporate bond spreads have come up to around their historical average, providing impetus for institutional investors trying to claw out yield any way they can, even if it means an extraordinarily long - term commitment.
Nobody is really talking about it but, with the Fed tightening this week amid rising corporate bond spreads, Ray Dalio's 1937 analog continues to rhyme.
But a continuation of favorable economic growth and low default levels — which we expect — and measured Federal Reserve tightening — which we also expect — should support more narrow high - yield bond spreads for some time to come.
Since corporate bond spreads — particularly lower - rated high - yield credits — are correlated to stock - market returns, a large increase in the VIX often correlates to corporate bond underperformance.
While the OAS of investment grade USD dollar bonds has held stable since the beginning of the year, high yield bond spreads have actually fallen, making these credits even less attractive than they were at the end of last year.
The two main components of this are corporate bond spreads and the cost of hedging the proceeds back to the home currency of the issuer.
The chart below shows «AAA,» «BBB» and high yield bond spreads.
U.S. high - yield bond spreads are 34 basis points, or hundredths of a percentage point, tighter; cover spreads are 21 basis points tighter, and emerging - market credit excess returns are at 3.6 %.

Phrases with «bond spreads»

a b c d e f g h i j k l m n o p q r s t u v w x y z