Sentences with phrase «bonds have lower»

High yield bonds have lower credit quality and carry a higher risk of default.

So, as you can see, bonds have lower risk because income is more certain for bondholders.

In a taxable account, he suggests using provincial or investment - grade corporate bonds for each rung, since Government of Canada bonds have lower yields.

For example US bonds have lower exchange fees than grain markets like corn and wheat.

Lower credit ratings High Yield Bonds have lower ratings due to the potentially greater risk involved.

Historically, we have seen short duration bonds have a lower correlation to stocks, which can be a beneficial ballast when equity markets are down.

Because of this long history, we know for a fact that stocks and bonds have low or negative correlations with gold, particularly during periods of economic recession.

Even though short - term bonds have a low inflation risk, there's still some risk.

The bonds have low credit risk; there's little chance that the issuers would be unable to pay interest or principal as promised.

Of the broader municipal bond market segments, taxable municipal bonds had the lowest returns of 1.3 % while the broad revenue bond segment recorded a return of over 4 %.

Yes, bonds have low yields and they will fall in price if rates go up.

True today the bonds have low yields but as for the future we don't know they could be high as they were in the past.

Bonds have low rates of returns, and equities have high valuations.

Not exact matches

The new bonds would capitalize on the province's ability to raise funds at low interest rates, said Finance Minister Charles Sousa.

That data raised a fresh round of questions about how the Federal Reserve will proceed on further cutting back on its massive monthly bond purchases, which have kept long - term rates low and encouraged a strong rally on equity markets.

Although last year was favorable for developing countries, investors remember the painful «taper tantrum» that ensued several years ago, when the Fed signaled it would begin pulling back on its massive bond purchases that kept rates low while injecting liquidity in markets.

The bond purchases, the third round of quantitative easing embarked upon by the Fed in the wake of the 2008 financial collapse and subsequent recession, have kept interest rates and bond yields low.

Ultimately these green bonds will only truly be successful if they allow the province to finance transit projects at a lower interest rate than would otherwise be the case.

In a client note on Thursday titled «Yanking down the yields,» the interest - rates strategist projected that bond yields would be much lower than the markets expected because central banks including the Federal Reserve were reluctant to raise interest rates.

Since then, bond yields have been pressing lower.

For the past seven years, low rates have made bonds relatively unattractive, and the stock market comparatively more attractive.

While investors will have to find stocks with higher yields, pay more for them and take on more risk in bonds, the biggest change in a permanently low - rate world is that people will need to set aside more of every paycheque if they want to keep the same goal for retirement income.

Low sovereign bond yields have long helped the government finance its debt, thus, higher yields would undermine the sustainability of its fiscal position, analysts said.

What that means is that you are in an environment that is going to have further trouble in terms of investment returns that are in areas that are based on economic growth and areas that do relatively well like bonds... Broadly speaking, I think that investors should be looking for lower prices on most risk assets in these developed countries with the exception of Japan.»

«If the BOJ were to ease policy, it would therefore be most natural for it to increase government debt purchases and target longer - dated bonds,» Kuroda said in a confirmation hearing in the lower house of parliament.

But, «the U.S. and the Bank of England have gone to more extremes because they have interest rates below the Bank of Canada's, and they've also been buying bonds to lower longer term interest rates,» Shenfeld added.

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.

Still, combine the indications of the short - term bond market with today's 5 % GDP news and you get the sense that stock traders betting on low interest rates for longer periods of time may soon have to bail out.

The Fed's low interest rate policy has driven more and more money into bond funds as investors search for higher yields.

LONDON, April 24 - Less than two weeks after the latest round of U.S. sanctions plunged Russia's rouble to 16 - month lows, some global funds have already stepped back in to buy rouble - denominated sovereign bonds and take advantage of the weaker currency.

I noted a week ago that Bernanke had essentially eased monetary policy by spurring a loosening of financial conditions via higher stock prices, lower bond yields, tighter credit spreads, and a weakening of the U.S. dollar.

Drummond suggests that no matter how the Americans deal with the debt, it could throw Canada into a double - dip recession: «It could be a lose - lose, because if they deal with it in a draconian fashion, then they'll kill off the recovery, but if they don't deal with it at all, they're going to see lower U.S. growth, drive down the U.S. dollar, raise the bond premiums — and that would be a disaster for Canada.»

Should low returns on bonds and stocks persist, that would only exacerbate this trend.

Volatility in the Treasury market has sunk to a multidecade low, and that could have sweeping implications for the bond market this year.

The lower a bond's duration, i.e. the less «years» of duration it has, the less volatile its price will be.

Broader green bond indices, usually an assortment of companies and sectors often unrelated to renewable energy generation, have seen lacklustre returns, much lower than those of appropriately - defined indices.

Historically speaking, when the economy has gotten stronger, the price of Treasury bonds go lower and the yield goes higher.

Particularly during the period of extraordinary policy accommodation — low interest rates and $ 3.7 trillion of bond buying — the Fed sometimes has struggled to communicate its intentions.

The board has been dealing with the volatility of publicly traded stocks and low returns from government bonds by diversifying into other forms of assets, including equity in private companies and investments in infrastructure such as highways and real estate.

Although it is fair to say that the recent uptick in volatility has in part reduced earlier concerns about prolonged low volatility and associated reach - for - yield behavior, it has placed added focus on the resilience of liquidity, particularly in markets, such as the market for corporate bonds, that may be prone to gapping between liquidity demand and supply in stressed conditions.

And corporations have spent the last decade issuing longer - term bonds to take advantage of low interest rates.

While U.S. savings bonds have lost popularity as a means of long - term savings due to the low interest rates they currently earn, some retirees have been holding on to bonds that were issued when rates were higher.

The low liquidity levels are caused by a combination of regulations, which make it less attractive for big banks to hold inventories of bonds for dealing, and new forms of quick, computerised trading, which have the potential to move markets in times of stress.

Trump's plans to increase fiscal spending has boosted bond yields — a change that would support higher revenue for banks currently languishing in a low - interest rate environment.

«On the bond side, we've been in a sustained low - rate environment,» she said.

Under that policy, the Federal Reserve has kept interest rates low and engaged for period of years in a campaign of aggressive bond purchases that have increased monetary supply and bolstered the stock market.

Its market share is shrinking, the company lowered its earnings guidance last week, and investors are treating its bonds as though they had junk status.

Yet while the Fed has eased policy to lower joblessness and raise inflation in the wake of the 2007 - 2009 recession, central banks such as the BoE have also launched accommodative bond - buying programs despite higher - than - desired inflation rates.

«Apple of course has huge amounts of cash, but... the cost of borrowing now is so unbelievably low that issuing long - term bonds... is actually a very smart thing,» Schwarzman said on CNBC.

Interest rates on ultra-safe investments like Treasury bonds have been hovering near record lows since the Great Recession.