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 Treasur
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 Treasur
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 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 %!