Sentences with phrase «bond spreads in»

Further, a widening of U.S. corporate bond spreads in the last couple of months has been an impending warning for equity markets.

«All this is likely to cause wider and more volatile government bond spreads in the coming weeks / months.

Not exact matches

Bond yields were mixed and credit spreads narrowed further: Weekly BAA commercial bond rates were not reported this week, presumably due to closures in the financial markBond yields were mixed and credit spreads narrowed further: Weekly BAA commercial bond rates were not reported this week, presumably due to closures in the financial markbond rates were not reported this week, presumably due to closures in the financial markets.

But, what typically happens in this cycle, is interest rates start to accelerate, leading credit spreads — essentially the gap between how much more of a return bonds provide compared with US treasuries — to compress.

Portugal has been profiting from lower bond yields, but as the ECB is expected to gradually lower its government bonds purchases, yields and spreads are expected to rise, which could hamper the improvement in government finances.

Third, in my judgement the credit spread between government and corporate bonds is very low.

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 DecembeIn 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 Decembein 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 Decembein this segment, such as the events surrounding the abrupt closing of Third Avenue Management's Focused Credit Fund last December.

The yield gap between U.S. 5 - year notes and 30 - year bonds narrowed to 27.20 basis points, the tightest spread in more than six years.

Bonds due in 2018 and won by BofA were «aggressively» priced with a 1.64 percent yield that narrowed Illinois» spread over Municipal Market Data's benchmark triple - A yield curve to 70 basis points from 100 basis points ahead of the sale, Greg Saulnier, a MMD analyst, said.

BofA won bonds due in 2029 with a yield of 3.78 percent, which slightly increased the spread over the scale to 165 basis points from 163 basis points, according to MMD, a unit of Thomson Reuters.

Type 3: The value - at - risk (VAR) shock in Japan in 2003 occurred when fears spread that the Bank of Japan, which was already doing QE before it was called QE, would taper its purchases of Japanese Government Bonds.

Meanwhile, actual and anticipated selling of short - duration bonds as companies repurpose repatriated cash has led to a widening in spreads.

So unlike in the corporate - bond model, dealers don't deal with compressed position limits by widening spreads.

It's more expensive to trade bonds, in terms of bid - ask spreads or volatility or the time to get a trade done.

A balanced approach to investing in bonds is probably the safest way to spread your interest rates risks and take advantage of changing rates since we won't be able to predict how things will work out.

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.

Only with bonds it's even harder to create a diversified portfolio using individual bonds on your own unless you (a) have a large amount of capital (typically bonds are sold in lots of $ 10,000 or $ 100,000) and (b) know how to trade bonds on the open market (transaction costs can be larger for bonds than stocks because of the spreads and lack of liquidity).

In contrast, bond market exposure (in the form of yield curve and spread risk) has played a relatively minor role in driving convertible bond risk and return in the recent past and seems likely to play a minor role in the year ahead, based on our modeIn contrast, bond market exposure (in the form of yield curve and spread risk) has played a relatively minor role in driving convertible bond risk and return in the recent past and seems likely to play a minor role in the year ahead, based on our modein the form of yield curve and spread risk) has played a relatively minor role in driving convertible bond risk and return in the recent past and seems likely to play a minor role in the year ahead, based on our modein driving convertible bond risk and return in the recent past and seems likely to play a minor role in the year ahead, based on our modein the recent past and seems likely to play a minor role in the year ahead, based on our modein the year ahead, based on our model.

This leaves us roughly in the same position that we started the year, slightly overweight to spread product, i.e., investment - grade and high - yield corporate bonds and emerging markets (more recently, we also went back to a slight overweight on commercial mortgage - backed securities).

But it looks like a high probability bet that the spread between the returns on stocks and bonds should be wider in the future than it has been for the past three decades or so.

When spreads are increasing, it is usually a sign of a selloff in risky bonds and buying of Treasuries.

In Europe, we like earning spread in supranational, covered and subordinated financial bondIn Europe, we like earning spread in supranational, covered and subordinated financial bondin supranational, covered and subordinated financial bonds.

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.

Spreads (the difference in price between the bid and offer) are among the most narrow available in the bond market.

Fixed income, rising (or falling) yields, junk bonds, Fed tightening, TIPS, spreads, mortgage - backed securities — there's no shortage of jargon for this supposedly «boring» investment that most of us own in our portfolios.

«Liquidity,» in fact, is THE watchword now in bond trading — ironic, considering that the U.S. central bank's primary intention has been to boost the flow of cash through financial markets, drive a push toward riskier assets like stocks and corporate credit, and thus generate a wealth effect that would spread through the economy.

And I agree that it's a good idea to spread your interest rate risk for bonds in a laddered portfolio.

We delve into the link between credit spreads and equity volatility in our new Fixed income strategy piece Turning stocks into bonds.

By contrast, in Australia there has been no noticeable widening of risk spreads in the corporate bond market over the past year, and credit has been easily available from intermediaries, with no reports of significant changes in banks» lending attitudes.

1: Widening credit spreads: An increase over the past 6 months in either the spread between commercial paper and 3 - month Treasury yields, or between the Dow Corporate Bond Index yield and 10 - year Treasury yields.

That decline in yields chipped away at the spread between 2 - year Treasuries US2YT = RR, which yield 2.282 percent, and longer - term bonds.

Floating - rate * The coupon on a floating - rate corporate bond changes in relationship to a predetermined benchmark, such as the spread above the yield on a six - month Treasury or the price of a commodity.

Intermediate - term bonds were up an average of more than 7 percent, earning a spread of more than 37 percent in outperformance over stocks during a bear market.

What is to stop U.S. banks and their customers from creating $ 1 trillion, $ 10 trillion or even $ 50 trillion on their computer keyboards to buy up all the bonds and stocks in the world, along with all the land and other assets for sale, in the hope of making capital gains and pocketing the arbitrage spreads by debt leveraging at less than 1 % interest cost?

-- Goethe What is to stop U.S. banks and their customers from creating $ 1 trillion, $ 10 trillion or even $ 50 trillion on their computer keyboards to buy up all the bonds and stocks in the world, along with all the land and other assets for sale, in the hope of making capital gains and pocketing the arbitrage spreads by debt leveraging at less than 1 % interest cost?

The BofA Merrill Lynch high - yield index is trading at roughly 600 basis points versus government bonds, but if energy, metals and mining is excluded, it's about 80 basis points less in terms of spread.

Meanwhile, bid - ask spreads in major corporate bond markets have narrowed sharply in recent years, but remain somewhat wider than the levels observed immediately before the global financial crisis (Graph 2, right - hand panel).

This is particularly true in the corporate bond market where credit spreads (the gap between treasury and corporate borrowing costs) have remained close to all - time lows.

Takeaway 2: In talks with people I seriously respect, I found more concern about valuations and spreads in the bond market than about valuations in the stock markeIn talks with people I seriously respect, I found more concern about valuations and spreads in the bond market than about valuations in the stock markein the bond market than about valuations in the stock markein the stock market.

Here, we take a look at the more recent June «Bond Market Group» minutes; the main concern was that, despite a functioning JGB market, there has been a notable increase in bid - ask spreads and general decrease in liquidity since the start of aggressive «QQE» last October.

In their October 2017 paper entitled «Value Timing: Risk and Return Across Asset Classes», Fahiz Baba Yara, Martijn Boons and Andrea Tamoni examine the power of value spreads to predict returns for individual U.S. equities, global stock indexes, global government bonds, commodities and currencies.

«Yield spreads over developed market bonds are reasonable, and the opportunities for adding value are more extensive, although emerging market currencies may need to weaken further in the short term.»

This led to a substantial tightening of credit spreads, which made Russian bonds look expensive compared to their peers in other emerging markets.

«Should the Portuguese situation continue to deteriorate, risk aversion contagion could quickly spread to other euro zone member states» bonds and other asset classes,» Adrian Miller, director of fixed - income strategy at GMP Securities LLC in New York, wrote in a note to clients.

And in CMBS land, spreads on investment - grade triple - B bonds surged by 158 basis points between May and June.

The resulting increase in corporate bond issuance has pushed up swap spreads, with the spread on US 10 - year (bank / government) swaps, for example, recently at its highest level for several years (Graph 7).

This led to quite a sharp narrowing in the spread in bond yields between the two countries, from around 130 basis points at the time of the previous Statement to a low of 85 basis points in early December.

There were six charts — credit spreads in overseas bond markets, credit to GDP, credit growth, house prices, banks» impaired assets and risk - weighted capital ratios.

While the low level of credit spreads in Australia (and in other major bond markets) largely reflects favourable trading conditions for corporates, there is evidence that the search for yield has been a contributing factor.

The recent widening of this spread is, of course, much smaller than was seen in 1994 in the previous episode of globally rising bond yields, when the yield on 10 - year bonds in Australia moved from 1 percentage point to about 3 percentage points above the comparable US yield.