Sentences with phrase «bonds i buy yield»

I use a minimum yield - to - maturity screen of 1 %, but most bonds I buy yield significantly more.

Not exact matches

Much of the shift lower in our yield forecasts derives from the view that the ECB [European Central Bank] will continue to buy bonds in its QE [Quantitative Easing] program.
So, it is a very different market than it was 10 years ago, and you're going to see a lot of corporate bond issuance as these infrastructure projects go out there, and you can capture some pretty good yields and you know what you're buying because it's a corporate bond.
«Is it strange for you to buy negative - yield bonds?
With the Fed actively buying securities on the open market, the additional demand means bond issuers can promise lower yields and still attract investment.
Among individual banking stocks, Bankia, Credit Agricole, ING and Banco Santander are «buy» - rated names, according to Deutsche Bank, as they all have a high positive correlation to U.S. bond yields.
Last year, when the Fed hinted that it was going to stop buying bonds, tapering its quantitative easing, bond yields jumped nearly 2 % points in just a few days.
Bond investors like mutual funds and pension funds hope to buy securities with comparatively higher yields than other asset - backed debt that could also provide diversification benefits.
The higher bond yields go, the more pension funds will buy as they look to lock in long - term income streams to meet their liabilities.
The bid - to - cover was 2.70, while 11.57 percent of the bonds were bought at high yield.
Buying corporate along with government bonds will increase your yield.
Buying negative - yield bonds — or paying for the privilege of lending money — may look like a sucker's game, but some see the opportunity for profits.
While it's better to invest than keep money under a mattress, buying risk free securities, such as guaranteed income certificates or low - yielding government bonds, could actually be riskier than purchasing higher returning products, says Ted Rechtshaffen, president and CEO of Toronto's TriDelta Financial Partners.
Certainly, it offers an attractive level for longer - term investors such as pension and insurance funds to lock in a relatively decent yield, and will tempt some portfolio managers to buy bonds rather than equities.
U.S. government bonds saw buying on Tuesday, pulling yields lower, after Secretary of State Rex Tillerson was ousted from the White House.
Rates for home loans eased up slightly as investors bought more bonds, sending yields down a few basis points.
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.
Buffett lamented in 2010 that he didn't buy more corporate and municipal bonds during the credit crisis when yields made the securities «ridiculously cheap» compared with U.S. Treasuries.
Central bank bond - buying programs — or quantitative easing — have been the key factor driving yields to record lows.
A key factor that could turn the tide for sovereign debt yields is the Bank of Japan, which meets Tuesday and Wednesday, and may decide to stop buying longer - duration bonds, according to reports.
However, despite Italy's budget difficulties, Monti said that it would not need a bailout, although the country may want Europe's rescue funds and the ECB to buy its bonds so that yields come down to a more manageable level.
Europe's Central Bank (ECB) continues to buy bonds, pushing bond yields lower.
Many bonds trade at negative yields because the European Central Bank (ECB) and the Bank of Japan (BOJ) continue to buy bonds as part of their management of monetary policy.
Tax reform could impact the high yield market and lead to a buying opportunity for municipal bonds.
Investors often buy those stocks when bond yields are falling.
Long - term yields for Treasury bonds began to rise in early May, following comments from numerous Federal Reserve officials indicating that the Fed's massive bond - buying program would begin to slow if the economy continued to improve.
Reining In Rates O'Neil, one of the managers of the $ 26 billion Fidelity Total Bond Fund, said rising bond yields could be reined in by at least three forces: Federal Reserve Chair Janet Yellen's commitment to a very gradual program of rate hikes, the traditional aversion to budget deficits by the Republican - controlled Congress, and buying by overseas investors who may use the recent jump in rates to snap up more TreasurBond Fund, said rising bond yields could be reined in by at least three forces: Federal Reserve Chair Janet Yellen's commitment to a very gradual program of rate hikes, the traditional aversion to budget deficits by the Republican - controlled Congress, and buying by overseas investors who may use the recent jump in rates to snap up more Treasurbond yields could be reined in by at least three forces: Federal Reserve Chair Janet Yellen's commitment to a very gradual program of rate hikes, the traditional aversion to budget deficits by the Republican - controlled Congress, and buying by overseas investors who may use the recent jump in rates to snap up more Treasuries.
Banks «earned their way out of debt» by lending to global speculators who used the yen loans to convert into foreign currency and buy higher - yielding assets abroad — capped by Icelandic government bonds paying 15 %, and pocketing the arbitrage difference.
With the Fed no longer buying bonds and investors expecting greater inflation, analysts say higher yields could make bonds more attractive than stocks.
One of my readers alerted me to the fact that someone bought 15,000 January 2016, 80 - strike puts on the HYG high yield bond ETF.
When I was a junk bond trader in the 1990s» we referred to anyone who bought a bond yielding over 12 % as «a yield hog.»
Since the global financial crisis in 2008 - 09, a combination of low inflation expectations and a bond - buying program by the Federal Reserve have helped keep bond yields low but they have climbed this year as inflation has picked up and the Federal Reserve raised interest rates.
Liquidity risk High yield bonds that may have been easy to buy or sell when market conditions were calm can suddenly become very difficult to sell when volatility increases.
Also, as interest rates rise above 2 %, a bond originally bought yielding 2 % will lose market value.
Yet the currency is likely to remain weak as zero - anchored Japanese 10 - year bond yields encourage local investors to buy higher - yielding foreign bonds.
When investors buy stocks, they get a higher yield than in banks or Treasury bonds, and they essentially get the company for free!
In a country where the unemployment rate is at a 20 - year low and industrial output is approaching historical highs, fueling inflation concerns, a 10 - year government bond yield of 1.5 % is totally inappropriate and will naturally spur people to buy real estate.
I can't see any rational reason why someone would think buying bonds as an investment makes any sense given ultra-low or negative yields.
At this point, it's human nature to say — as I've often heard from clients over the last 39 years, whenever short rates rise above long rates — why buy a 20 - year bond when I get a higher yield on a 2 - year piece of paper?
Any significant rise in corporate bond yields would throw cold water on a key artificial impetus in the stock market — corporations borrowing heavily to buy back their own stock.
High yield (HY) spreads — the difference between the yield of a high yield bond and a Treasury note of similar duration — are down 2 percentage points from their February peak, as investors buy high yield bonds.
Note: HYG the $ 20bln high yield ETF yields 5.13 % in comparison, hence you might need to buy an out of favor sector like bricks and mortar retail, otherwise non-rated is likely where you will find > 7 % in the US domestic bond market.
Although there have been many ups and downs in this extended rate cycle, junk bonds and the portfolio managers who buy and sell them have never experienced a rise from these yield levels before.
Former Fed Governor Stein highlighted that Federal Reserve's monetary policy transmission mechanism works through the «recruitment channel,» in such way that investors are «enlisted» to achieve central bank objectives by taking higher credit risks, or to rebalance portfolio by buying longer - term bonds (thus taking on higher duration risk) to seek higher yield when faced with diminished returns from safe assets.
He also noted that it is a very poor time to buy corporate bonds (high yield bond index yield 4.93 %) and Gundlach sees a negative return for the S&P in 2018 as the rates rout eventually gives the equity market the yips.
Personally I think mortgage debt is the only good debt, but I'm not sure I'd use it to buy low - yielding bonds.
All this currency intervention from central bankers is not only causing stocks to rise, but bond prices have risen as their yields fall in response to news that central bankers are going to be buying bonds in an attempt to lower interest rates further still.
The central bank underlined its determination to keep 10 - year yields close to zero by offering to buy unlimited bonds.
The yields on these extremely short - term vehicles just about disappeared as the Federal Reserve's program of bond - buying, known as Quantitative Easing, and other aggressive monetary policy measures drove down rates.
Even though the yield - to - maturity for the remaining life of the bond is just 7 %, and the yield - to - maturity you bargained for when you bought the bond was only 10 %, the return you have earned over the first 10 years is an impressive 16.26 %!
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