Sentences with phrase «bonds rated near»

Not exact matches

He has implemented a massive stimulus policy by cutting the central bank's benchmark interest rate to negative, keeping the 10 - year Japanese government bond yield near 0 percent in an effort to control the yield curve and stepping up the Bank of Japan's asset purchases.
With valuations sitting near record levels, they're especially vulnerable and likely to lose appeal relative to bonds as interest rates rise.
We believe that long - term tax - free municipal bonds that offer near - 4 % yields (a 6.62 % taxable equivalent at today's top rate and 6.15 % even at the new proposed top rate of 35 %) still offer superior value.
Not only isn't there anywhere near enough bank capital in the US to supplant securitization, it is difficult to conceive that the universe of «rates» buyers will become mortgage credit buyers or move over to covered bonds (which default to the issuing bank's credit ratings), at least not at the same price levels and in the same size.
Along with buying up bonds, the Fed kept its benchmark interest rate anchored near zero until December 2015, when it began a gradual process of hikes.
Neither argument holds right now for holding any tactical cash, especially with no reasonable prospects for a near - term rate increase and the yield differential offered by bonds over cash right now.
Rating service Moody's tracks covenant quality, essentially a measure of standards that bond issuers must meet, and reported Thursday that the latest reading remains near record highs, which indicates weak restrictions.
Interest rates on ultra-safe investments like Treasury bonds have been hovering near record lows since the Great Recession.
Unlike traditional bond funds, a DMF's price sensitivity to changes in interest rates declines gradually over time, approaching zero near the fund's target end - date.
Bond duration, a measure of interest rate risk, is near benchmark levels.
It's also makes sense to look back at the historical data to see what happens when bonds aren't in a near - continuous falling interest rate environment.
Yes, cheap money polices did help stabilize a reeling housing sector, that shouldn't be dismissed, but what else does the Fed have to show for near - zero short term interest rates and the fortune spent lowering longer term rates through its bond buying program?
Cumulative inflows into the iShares Short Maturity Bond ETF (NEAR), Floating Rate Bond ETF, SPDR Bloomberg Barclays Short Term High Yield Bond ETF, PowerShares Senior Loan Portfolio, and the Vanguard Short - Term Corporate Bond ETF topped $ 400 million in total for the first session of the week, the highest since the inception date of the most recent member of this product group.
Unlike traditional bond funds, a DMF's price sensitivity to changes in interest rates declines gradually over time, approaching zero near its target end date.
Should the yield curve steepen, with 10 - year bond yields moving above 2 % while short - term rates are anchored near zero, it would imply that a longer term inflation fear is re-entering the market.
Bonds, stocks and real estate, he writes, are overvalued because of near zero percent interest rates and a developed world growth rate closer to zero than the 3 % to 4 % historical norms.
For starters, despite the Fed's interest rate hikes, the rate differentials with Japanese government bonds and German Bunds were near extremes, suggesting the markets were already reflecting the worst of policy divergence.
Bluford Putnam, managing director and chief economist at CME Group, the world's biggest futures market operator, agreed that the Fed's near - zero interest rates and bond purchases helped stabilize financial markets and bolstered the economy — but only for a while.
-- A lot has been made about the potential for a bond bubble with interest rates near historic -LSB-...]
A lot has been made about the potential for a bond bubble with interest rates near historic lows and not much room to fall any further.
«The bond market represents more of an evolving risk given the likely onset of Federal Reserve rate hikes near - term, which in turn will lead to speculation as to when the rest of the world will follow,» said Gayle.
Bill Gross, an influential bond fund manager, tells Bloomberg that he expects rates to tread water for the near term.
In addition to near zero interest rates, central banks created excessive amounts of money by issuing trillions of dollars of bonds, e.g. QE1, QE2, QE3, QE4, etc. pushing unprecedented amounts of newly created money into global markets to contain the growing deflationary threat; and, while it failed to contain deflation, the excessive liquidity is now circulating in markets with no place to go, akin to moribund monetary edema.
Market participants are looking forward to getting their first major reading on earnings from the biggest technology - sector players in the coming days, but for now, investor sentiment has been able to overcome what would ordinarily be a troubling rise in long - term bond yields that could signal a steeper move higher for interest rates in the near future.
She also repeated the Fed's message that even after the bond program ends, it will keep short - term interest rates near zero for a long time because the bank doesn't want to remove its support too fast.
By the end of the year, the Fed had reduced interest rates to near zero and had launched controversial programs, such as buying bonds to lower mortgage and other long - term rates to spur borrowing.
As investor anxiety has shifted from growth and geopolitical shocks to the Fed, the correlation between stocks and bonds has started to rise, and it's likely to continue rising as a Fed rate hike nears.
Here's an interesting Bloomberg piece on what bond guru Bill Gross is calling «financial repression», but what you can just call «low interest rates» The big story is that the world is still crawling out of a near - depression, and there is not a central banker in the developed world who would dare dream of pushing interest rates to anything above a number you could count out on the fingers of one hand (and seriously, in most countries you could leave out the thumb and index finger as well).
There's a variety of funds to choose from: iShares Floating Rate Note ETF (FLOT) and iShares Short Maturity Bond ETF (NEAR) hold investment grade floating and fixed rate bonds, respectivRate Note ETF (FLOT) and iShares Short Maturity Bond ETF (NEAR) hold investment grade floating and fixed rate bonds, respectivrate bonds, respectively.
Short term interest rates remain near zero, 10 - year bond yields have declined below 2 %, and our estimate of 10 - year S&P 500 total returns has declined to just 1.4 % (see Ockham's Razor and the Market Cycle for the arithmetic behind these historically - reliable estimates).
As interest rates rise, bond prices generally fall; these risks are currently heightened because interest rates are at, or near, historical lows.
Consequently, unlike traditional bond funds, a DMF's price sensitivity to changes in interest rates declines gradually over time, approaching zero near its target end date.
You can see that munis» default rate is near - zero and that Aaa - rated bonds don't even register.
The stimulus comes in the form of a plan to hold interest rates near zero at least through mid-2015 and to buy $ 143 billion in mortgage bonds through the end of the year, and then continue the purchases as long as necessary.
Savers are being warned that greatest - purchase fixed - phrase bonds that pay out much better rates than their nearest rivals could not be all that they seem to be.
Under Powell's predecessors, Janet Yellen and Ben Bernanke, the Fed's board endured criticism from House Republicans over its decision to pursue a bond purchase program designed to lower long - term borrowing rates and to leave its key rate at a record low near zero for seven years.
Australian government bonds gainedon Fridayafter the Reserve Bank of Australia (RBA) provided no hint of near - term interest rate hike, also, hinting that inflation is about to remain low for some time.
The Fed is currently buying $ 85 billion in Treasury and mortgage bonds a month in a move that has kept long - term rates near record lows and supported economic recovery.
Pent - up demand following a shutdown for Hurricane Sandy combined with near - record - low interest rates to release a torrent of new corporate bond issues in early November.
Bernanke had pushed the central bank to drop its key short - term interest rate to near zero and purchased trillions of dollars of government bonds to lower long - term rates.
He transformed the City's bond rating from near - junk status to an «A» rating by Moody's and Standard & Poors.
We have seen our bond rating increase from near junk status to «A» category ratings.
As investor anxiety has shifted from growth and geopolitical shocks to the Fed, the correlation between stocks and bonds has started to rise, and it's likely to continue rising as a Fed rate hike nears.
Investors are willing to accept lower returns on bonds in exchange for safety, but near - zero interest rate levels have traditional bondholders seeking yield elsewhere.
There's a variety of funds to choose from: iShares Floating Rate Note ETF (FLOT) and iShares Short Maturity Bond ETF (NEAR) hold investment grade floating and fixed rate bonds, respectivRate Note ETF (FLOT) and iShares Short Maturity Bond ETF (NEAR) hold investment grade floating and fixed rate bonds, respectivrate bonds, respectively.
After reducing interest rates to near zero during the recession, the Fed has finally raised those interest rates, which has wide - reaching implications for investors — particularly those in bond portfolios.
For those who prefer cash or bonds, we asked fixed - income columnist Pat Bolland to identify which types of fixed - income investments make most sense for RRSP investors in this era of protracted near - zero interest rates.
By gradually shortening the duration of your fixed - income holdings, you'll be making your bond holdings less vulnerable to losing value in the event of a spike in interest rates near the end of your working life.
(If a lender can not explain how Mortgage Bonds and interest rates are moving at the present time, as well as what is coming up in the near future, you are talking with someone who is still reading last week's newspaper, and probably not a professional with whom to entrust your home mortgage financing.)
Even a cursory glance at financial markets indicates that market participants are expecting some form of interest rate increase in the near future — there has been a sell - off in the 10 - Year U.S. Treasury Bond market, and certain sectors that are expected to benefit from such a rate increase have gained.
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