Sentences with phrase «bond spreads widen»

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.

Not exact matches

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

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.

The yield on the U.S. 10 year Treasury bond recently hit 9 - month highs and the 2s10s spread widened on news of the Bank of Japan trimming its long - dated bond buying program and questions around China's ongoing purchase of U.S. Treasuries (USTs) with its foreign - exchange reserves.

Bond yields are down slightly, credit spreads have remained well behaved while widening subtly, and there has been limited flight to traditional perceived safe havens like the U.S. dollar or gold.

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.

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.

Spreads between yields on US Treasury securities and corporate bonds have widened noticeably.

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.

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.

This is a little larger rise than the move in US bond yields in the same period, resulting in a small widening in the spread to US bonds.

High - yield bond spreads have widened, but only marginally, from historically tight levels.

High - yield bonds have followed suit, hitting decade - tight levels in credit spreads in October, though they have widened slightly since then.

EM bonds also look like a relative bargain within fixed income after this year's spread widening.

In the days since UK Prime Minister David Cameron confirmed the date of the referendum, markets have experienced some volatility focused on UK - specific assets; spreads for some UK issuers of euro - denominated bonds have widened considerably for no apparent reason, which suggests to us that a lot of Europeans are selling their UK exposure.

Reflecting further scaling back in the outlook for economic growth in Europe, the spread between US and German 10 - year bond yields has widened.

Also funds and ETFs that hold corporate bonds and hedge by selling treasury bond futures may lose value if the spread between corporate bond yields and treasury bond yields widens.

In recent weeks, the spread (or difference) between the yield of the 10 - year Treasury and a high yield bond of comparable maturity actually widened a bit, roughly 0.45 %, restoring some value in the space.

Phil: I don't follow the corporate bond market but my understanding is that the spreads have significantly widened in corporate bonds due to the repricing of risk.

The direction of the spread may increase or widen, meaning the yield difference between two bonds is increasing, and one sector is performing better than another.

The massive buying demand for Xerox CDS led the CDS spreads to widen, which spread into the corporate bond market through arbitrage and eventually led the price of Xerox common equity downward.

Private equity deals will likely continue to be made until something happens to disturb that gap, such as junk bond yield spreads widening or interest rates moving up, Levkovich said.

This flight to quality movement also impacted credit spreads, which widened for both investment grade and high yield corporate bonds, negatively impacting the returns of bonds in those sectors.

But last week the benchmark 10 - year U.S. Treasury bond yield jumped to a six month high around 3.75 pct, while the spread between 2 - year and 10 - year bond yields widened to a record 2.75 percentage points.

The option - adjusted spread of the S&P China Industrials Bond Index was the highest; it widened 50 bps to 155 bps over the three - month period ending May, 2016 (see Exhibit 2).

Junk bond holders have been beaten up by the one risk they did not want to see: credit spreads widening.

I remember back in 2002 as a corporate bond manager / trader — bonds were trading in «onesies» and «twosies,» though bid - ask yield spreads hadn't widened much.

The widening spreads between the bonds of peripheral Europe and Germany are, of course, picking up both aspects of investors» reactions.

Beyond lower rates, the other key trend in the bond markets is widening credit spreads, or the difference between the yields of U.S. Treasuries and credit instruments of comparable maturity.

Though LBOs have caused some selective widening of yield spreads, the broad corporate bond market is being supported by strong demand for fixed - income assets, he said.

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.

The spread between the yields of bonds with different credit quality generally narrows when the economy is improving and widens when the economy weakens.

Bond investors are demanding higher yields from the debt of countries with less attractive leverage profiles and seeking out the safer debt of countries like Germany, widening spreads.

Key credit spreads were widening, such as those between intermediate - term treasury bonds and riskier corporate bonds in funds like iShares Baa - Ba Rated Corporate Bond ETF (BATS: QLTB) or SPDR High Yield Bond (JNK).

As bonds get pulled lower the spread between them and stocks widen.

That would usually elicit a comment from my coverage akin to, «The analyst thinks spreads have widened out for that credit because spreads in that industry have widened out, and a less liquid bond would widen out more.

Spreads on Illinois debt to MMD (Municipal Market Data, the yield curve of the highest rated, AAA / Aaa municipal bonds, as published by Thompson Reuters) have widened.

This recent widening of spreads on our credit default swaps could impact the perception of our financial condition by MBIA Corp.'s insured bondholders and counterparties and could affect their willingness to purchase MBIA Corp.'s insured bonds and to continue to enter into transactions with MBIA Corp..

This says that spreads on AAA bonds should widen when Treasury rates are low.

That markup — the spread relationship — widens and contracts with a range of market conditions, investor appetites and supply of available product — as well as the presence of competing investment opportunities, like corporate bonds or domestic (or foreign) equity markets

They were the worst of BBB - rated bonds, but they argued off of a limited period of past returns, that the widening in yield spreads over Treasuries was not justified, so but them because they survive and outperform.

We had a lot of macro protection in terms of credit default protection on bonds we didn't own, just betting that credit spreads would widen.

It was notable that government bonds outperformed corporate bonds by a healthy margin as credit spreads widened.

The spread for that deal today likely has widened to around 65 basis points, he adds, and bond buyers would only acquire some 85 % of the pool.

Spreads have widened in the unsecured debt market, making it more expensive to issue bonds to raise money.

Credit spreads on tax - exempt bonds to finance non-profit continuing care communities have widened 75 to 100 basis points, according to Dan Hermann, managing director and group head of senior living finance at Chicago - based Ziegler Capital Markets.