By comparison, safer 10 year US Treasury
bonds have seen yields drop by 40bps and have returned 5.17 % year to date.
High yield
bonds have seen compressed yields for some time as the relentless drive for yield had shifted flows toward yield producing assets.
Long
bonds have seen strength across asset classes in 2017 and municipal bonds are going along as this index has a 9.8 % total return so far in 2017.
Recent issues of
these bonds have seen interest rates between 2.5 percent and 3 percent.
Also, over the past forty years or so, intermediate - term
bonds have seen drawdowns that are roughly 70 % lower than long - term bonds, on aver... -LSB-...]
Bond had seen him puffing away at a recent concert given by the Musical Society in School Hall.
Not exact matches
Some in the market
have attributed the sharp market swings
seen during the downturns in October and December as indicating structural problems with liquidity in the market — and some fingers
have been pointed at the proliferation of
bond funds.
So far this year, not a single
bond from an emerging nation
has defaulted, while 2015
saw just one, an issue from Ukraine, go bust, according to Moody's Investors Service.
Asset managers say they
've seen a notable number of companies fail to close dollar - denominated
bond deals of late.
However, recently, the economic recovery
seen in Portugal since the sovereign debt crisis
has indeed begun affecting the way agencies such as Moody's and Standard & Poor's
see the economy, indicating that in the near future more investors could be considering buying Portuguese
bonds.
But some observers expect Russia's strongest efforts may be reserved for Serbia, which
has close cultural and religious
bonds with Moscow — and whose membership in NATO or the European Union
would be
seen by the Kremlin as a severe blow.
Over the past few sessions, we
've seen fairly consistent rises across European government
bond markets and that's spilled over to the U.S.» said Anthony Valeri, senior vice president of fixed income research at LPL Financial.
After years and years and years of massive, massive inflows into
bond funds and equally massive outflows out of domestic equity funds, we
've finally started to
see that shift.
It already
has a joint venture with Algomi, which will
see Euronext leverage Algomi's
bond trading technology to push into North America and Asia.
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.»
Butler: I believe that we should
see strong equity markets and I
would be more weighted to equities than
bonds.
Butler: We could
see interest rates moving up and this will
have an impact [on] long
bond investors.
With most of these debts being held by Chinese entities, it's unlikely we'll
see a banking crisis in the same way we could
have seen if Greece or Spain went belly up, said Lau — many foreign banks hold European
bonds — but we
've seen markets panic on far less worrisome Chinese news in the past.
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.
High - quality
bonds, in fact,
have seen a huge year for issuance despite the continual drumbeat of fixed income fears.
In fact, Zervos even explains the skyrocketing
bond yields in Spain and Italy that we
've been
seeing recently, arguing that borrowing costs for sovereigns will rise even as Europe establishes a watershed banking union.
I
have seen many parents and children
bond through the experience of starting a business and
having an activity that brings a common vision and purpose.
In fact, in the past five years,
Bond No. 9
has gone global,
seeing substantial sales in the U.K., Asia, Latin America and the Middle East.
The $ 3 trillion hedge fund industry, which
has been struggling to outperform stock and
bond markets, could
see assets shrink by as much as 30 percent in the next three years if performance continues to disappoint, according to a report this month from Boston Consulting Group.
«As we
saw in the»70s and»80s, there are times when stocks and
bonds can
have a positive correlation,» he said, meaning those assets can move in the same direction.
Projections showing Macron
had won a commanding majority in France's weekend vote
saw Paris stocks make a 1.1 % gain as the country's
bonds also outperformed in fixed income markets.
«
Bond yields are at the lowest level that most retirees
have seen in their lifetime,» Zemsky said.
We can also
see in the U.S. Treasury reports that Chinese holdings of U.S.
bonds and notes
have been declining.
We also haven't
seen what's been dubbed «the great rotation,» the anticipated mass move from
bonds into stocks.
«Stocks certainly look more attractive than
bonds, but the case for stocks versus other asset classes is less clear... «So while returns may compress from the outsized gains we
have seen over the last several years, we remain constructive on equities.
Everyone in the
bond market
has seen the 3 % marker on the 10 Year treasury.
To get short the markets I either
have to go to cash or buy a
bond fund, which admittedly turned out quite well (Read: The Proper Asset Allocation Of Stocks And
Bonds By Age and
see VUSUX).
yields will hit the highs on close end of the day... equity markets setting up to be slammed tomorrow maybe but today they
have run over weak shorts in the face of rates... the federal reserve
see's this and again will wonder if they are behind on hikes, strong data, major expansion in credit, lack of wage growth rising
bond yields and ballooning debt... rates will go much higher and equities will
have revelations as to what that means for valuations
But that relationship
has been tested over the life of this
bond bull market that
saw double digit interest rates fall over the past 30 + years, boosting the performance of long - term
bonds.
As you can
see in the chart below, based on investment performance for the 35 - year period beginning in 1972, a hypothetical balanced portfolio of 50 % stocks, 40 %
bonds, and 10 % short - term investments
would have done quite well for a retiree who limited withdrawals to 4 % annually.
I think we
would STILL be
seeing an inversion
had the long
bonds not been spooked by inflation concerns.
Historically, we
have seen short duration
bonds have a lower correlation to stocks, which can be a beneficial ballast when equity markets are down.
Higher rated
bonds, known as investment grade
bonds, are
seen as safer and more stable investments that are tied to corporations or government entities that
have a positive outlook.
What we
have really
seen over the past several years, in terms of the appreciation of markets and the decline of interest rates based on what the Fed
has been doing, is a result which
has eliminated the possibility of investors in
bonds and stocks to earn an adequate return relative to their expected liabilities.
The Fed confirmed that its
bond - buying stimulus program
would end next month, and its new projections suggested some officials
saw the risk that rates might
have to rise at a faster pace when the bank eventually starts tightening.
High - yield
bond funds
have seen mass outflows in recent weeks as investors begin to take the threat of higher interest rates and a winding down of monetary stimulus more seriously.
-LSB-...] About Individual
Bonds vs.
Bond Funds (A Wealth of Common Sense)
see also Dry Powder (Irrelevant Investor) • Why Uber
Has To Start Using Self - Driving Cars (Climateer Investing)
see also Tesla's -LSB-...]
Investors considering Treasury securities
have opportunities to buy
bonds both at regularly scheduled auctions (
see Auction Schedule) and in the secondary market, which is one of the world's most actively traded markets.
High - yield
bonds are in the eighth year of an investment cycle that
has seen assets under management grow threefold, to $ 300 billion, so interest among investors remains high.
Mr. Draghi said Thursday that the
bond buying
would continue through September 2016 or «until we
see a sustained adjustment in the path of inflation which is consistent with our aim of achieving inflation rates below, but close to, 2 percent over the medium term.»
This
has been particularly important in bringing about the sharp convergence of
bond yields that we
have seen around the world over the past few years (Graphs 3 and 4).
Under this scenario stock -
bond correlations are likely to be higher than the consistently negative levels that
have defined the post-crisis environment (
see the chart below).
Although cash tends to
have a lower expected return than
bonds, we
have seen that cash can hold its own against
bonds 30 percent of the time or more when
bond returns are positive.
I also
have some investments outside of farming, mostly real estate, but some stocks and
bonds as well.Maybe it's just because I'm an ignorant South Dakota farm boy who happens to like open spaces and
seeing the stars at night.
Bond yields
have likely bottomed out, and we don't
see scope for big rises in already elevated stock market valuations amid tepid earnings growth.