Not exact matches
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.
i think we either get more
tightening from the Fed moving over 5 % or we get more
tightening from the
bond market through a wider 2s / 10s
spread.
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.
Credit
spreads have
tightened globally, and U.S. credit
spreads are at the narrow end of their 17 - year range against government
bonds — even after a recent widening.
While volatility appears to be back, high - grade corporate
bond spreads have
tightened to levels not seen since 2007.
This led to a substantial
tightening of credit
spreads, which made Russian
bonds look expensive compared to their peers in other emerging markets.
To make things even more difficult, investors are increasingly buying to hold to maturity for the simple reason that if
spreads are going to
tighten, it is difficult to find a replacement once a
bond is sold.
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.
An order book of approximately 1.2 billion euros allowed the company to
tighten pricing on the five - year
bond on Thursday to a final
spread of 320bp over mid-swaps, from revised guidance of 325bp area.
So in a boom, credit
spreads [the difference between the yields of corporate
bonds and Treasury
bonds]
tighten quickly,
tighten slowly, and then stop
tightening, even though things seem to be going great.
Global corporate
bond spreads have shrunk this year and are expected to
tighten further, should the European Central...
Global corporate
bond spreads have shrunk this year and are expected to
tighten further, should the European Central Bank (ECB) extend its asset purchases.
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.
I am wary about the duration of the Bloomberg Barclays US Aggregate
Bond Index, 10 which has lengthened to 7.5 years while
spreads have
tightened to nearly 1 percent.
The investor appetite for the risk - adjusted return is also reflected in the
tightening spread to the Australian government
bonds.
Also, the yield
spread between U.S. Treasuries and corporate
bonds has
tightened, meaning credit offers thinner insulation against rate rises.
US and CAD investment grade credit
spreads, the difference in yield between corporates and Canadas,
tightened by.3 % and US high yield
bonds tightened by 1 %.
Credit
spreads have
tightened globally, and U.S. credit
spreads are at the narrow end of their 17 - year range against government
bonds — even after a recent widening.
This
spread has a ways to
tighten before equities» relative valuation starts to look less attractive (it's when the stock /
bond PE ratio is closer to 1 that investors should start to worry).
As I commented to a Treasury staffer after the meeting, with financing rates so cheap to buy financial debts, regardless of what kind, it is no surprise that corporate
bond spreads have
tightened, while there is still little lending to finance growth in the real economy.
As of Feb. 5, 2018, investment - grade
spreads had
tightened 6 bps and were more than 110 bps tighter compared with February 2016, as measured by the S&P 500 Investment Grade Corporate
Bond Index.
While volatility appears to be back, high - grade corporate
bond spreads have
tightened to levels not seen since 2007.
Since the financial crisis, investment grade corporate
bond indexes have reached record highs, 1 and credit
spreads have
tightened significantly,» said Michael L. Sapir, Chairman and CEO of ProShare Advisors LLC, ProShares» investment advisor.
7) The corporate
bond market has been on fire of late, with higher prices,
tightening spreads and greater issuance.
In 1993, however, when it was apparent that Sears was still solvent and the recession was ending, the
bonds tightened back in to their original issue 125 bps
spread and have now continued to narrow in to 80 bps.
Before 2008, it was common for the most senior
bonds behind CMBS deals» to be oversubscribed threefold, which drove the
spread tightening.
Over the past six to 12 months, the investor
spreads on the subordinate CMBS
bonds have
tightened considerably, adds Hurley.