Sentences with phrase «bonds would likely»

I mistakenly said the bonds would likely be unsecured; given that the committed bridge loan is going to be second - lien secured, I'd expect the bonds to be second - lien secured bonds as well.

Also, if they bought the wad, they would know that there were likely no more bonds on offer, the selling pressure would be gone, and the bonds would likely trade up from there.

The far greater problem with this is that interest rates on these bonds would likely be significantly higher due to the risk they could be made invalid as they weren't legally issued.

Not exact matches

Even if the president weathered the resulting political storm of overriding the legislative branch, investors would likely shy away from any new bonds issued under such a legal cloud.

If policymakers, however, resolve to have no government involvement at all, the bond market will price it out for you, but the likely outcome is a residential mortgage market that is smaller, more expensive, and less liquid.

Sure, some of that had to do with Goldman beating earnings expectations, passing its Fed stress test and unexpectedly making a killing trading bonds, but the election likely factored in too, and investors can thank Clinton for that.

NEW YORK, Jan 10 - Federal Reserve policymakers reacted coolly to a report on Wednesday that China could curb its massive U.S. debt purchases, pointing out that such rebalancing by countries can be healthy and would not likely disrupt the U.S. central bank's plan to trim its own bond portfolio.

The Armageddon default would also likely temporarily decouple trends in U.S. and Canadian bond yields, which historically tend to move closely.

Though «the ECB has been under - purchasing Portuguese bonds,» he said, «it is likely to be relatively less badly - affected by the end of quantitative easing than others, such as Italy.»

That has Deutsche Bank wondering if there is likely to be a wave of companies failing to pay interest on their bonds.

You could say that 2018 is still a young year and it's way too early to judge things, which is true, but the level of volatility in both stocks and bonds during February is making this year feel like we've lived through two full years already, and I think what the markets are signaling is more likely to be a sea change than a blip.

Daniel Hanson, an analyst for Height Securities, told Morning Consult that the current default likely won't have a major effect on the municipal bond market because its effects were already «priced in» ahead of time.

Investors have had a long time to digest the taper news: Their reaction to the Fed actually shrinking the size of its bond purchases is likely to be smaller than their reaction in anticipation of such a move.

The Fed has put off plans to taper its bond - buying for now, but will likely do so in early 2014.

They likely worried that rates would rise even more, and jeopardize the economy, if they reduced the bond - buying.

Progress in a few areas has been solid: slashing of bureaucratic red tape has led to a surge in new private businesses; full liberalization of interest rates seems likely following the introduction of bank deposit insurance in May; Rmb 2 trillion (US$ 325 billion) of local government debt is being sensibly restructured into long - term bonds; tighter environmental regulation and more stringent resource taxes have contributed to a surprising two - year decline in China's consumption of coal.

In contrast, bond market exposure (in the form of yield curve and spread risk) has played a relatively minor role in driving convertible bond risk and return in the recent past and seems likely to play a minor role in the year ahead, based on our model.

As long as the BoC remains reluctant to raise rates, history would suggest that the correlation between stocks and bonds is likely to remain negative.

Meanwhile, bond investors should brace for a flattening Treasury curve, with 10 - year rates likely to tick higher, while the 30 - year rate dips to 2 % late in 2018, which would be its lowest level since the financial crisis.

While she expected that bond yields might not fall too much near term as managers would need to allocate some funds to cash bonds, swaps and futures would likely remain under pressure.

I no longer have any discounted bonds in the portfolio that are likely to be «money good».

That said, redemptions were moderate during the first two weeks of June and even slowed for the week ending June 19 — the day that Fed Chairman Ben Bernanke held a press conference and announced that the Fed would likely begin backing away from its bond - buying program by the end of the year.

The impact on asset prices from such a shift in policy gears in the Eurozone would likely dwarf any negative bond price effects.

Summers would take over the Fed in February, and Bernanke himself has said the bond programs, known as quantitative easing, are likely to end by mid-2014.

The biggest reason for lower 60/40 portfolio returns from here would likely be a combination of lower stock and bond returns.

Volatility has risen recently for both stocks and bonds, and the rocky road is likely to continue.

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).

I certainly wouldn't expect market returns (5 % bonds, 8 % stocks) but something north of 2 % is likely over 10-15-20 + years.

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.

If the government did stop paying interest on its outstanding bonds, those bonds would most likely become less attractive.

While he thinks stocks are still the place to be, Johnson believes we have likely entered a bear market in bonds.

Our Investment Strategy Report published on March 19 compared equity and bond yields over multiple business cycles and found that the 10 - year Treasury yield might have to sustain levels exceeding 3.5 % (far above what we believe is likely this year) before compelling a year - end 2018 S&P 500 Index target range below our current year - end target of 2800 - 2900.2

They are also less likely to have call protection, which means that if a company's financial condition or credit rating improves, the issuer can call its outstanding bonds and take advantage of lower funding rates.

But since preferreds also have common stock characteristics, the negative impact of rising interest rates is likely to be somewhat subdued relative to the impact on bonds.

In Australia, for example, several foreign banks have ceased their market - making in corporate bond and derivatives markets in recent years and have drawn down their inventories.7 In core markets, such as domestic sovereign bonds, domestic dealers are likely to pick up at least part of the slack.

In turn, the hedge fund pushed riskier bonds that would make the investment more likely to fail.

Lower taxes would likely lead to larger deficits, which could require the Treasury to issue more debt, increasing the supply of government bonds on the market.

Given the above, it is reasonable to argue that even a small scale volatility shock would likely induce heightened market reaction, even if the event merely reverses some of the term premium compression in the sovereign bond markets.

The yield on the 10 - year Treasury bond climbed above 3 % for the first time since 2014, but of greater concern to many market participants were remarks in major corporate earnings reports suggesting that business conditions had likely hit their peak and were poised to deteriorate going forward.

The same is likely to hold true in the bond market, but again, we have the flexibility to vary our investment exposures in response to market fluctuations, which I would expect to be helpful.

I personally believe that the above are good enough reasons to add pressure to Treasuries, but if we want more food for thought, we can not forget that China is the largest holder of US government bonds after the Fed and if the rhetoric around a trade war escalates we can assume that this point would most likely be touched by Chinese counterparties.

If the Dollar broke lower, its likely too that bonds and duration would rally; defensives (staples, utes, reits) and growth (tech / biotech / discret) squeeze against crowded value unwinding (fins, energy, indus); yen and euro would squeeze mightily; gold squeezes while copper pukes in a favorite commodities «pair» unwind; HY could reverse weaker vs IG (currently everybody long CCC vs BB on the high beta trade)... this would be the theoretical path to our next pain - trade or even VaR shock.

But a deeper decline in Italy's economy this year that pushed debt to GDP ratios materially higher would likely catch bond investors» attention, and then ultimately the attention of global stock investors.

Open Europe, a Brussels - based think tank, estimates that through government bond purchases and liquidity provisions to banks, the ECB's exposure to Greece, Portugal, Ireland, Italy, and Spain has reached 705 billion euros, up from 444 billion euros in early summer - a 50 percent increase in six months (their note was published prior to the December 21 three - year LTRO, which likely further boosted lower quality collateral).

Because the level is so critical and the base is so big, a break in the long - bond yield above 3.22 % likely would lead to a big move up in yields.

Having stocks, bonds and gold rise in tandem is likely a short term phenomenon since these asset prices usually move in different directions.

With correlations having become positive, the rise in bond yields likely will lead to a decline in stocks.

They likely have room to up allocations: $ 71 billion has left Asia ex-Japan bonds and stocks since the mid-2013 «taper tantrum» set off by the Federal Reserve (Fed) signaling an end to bond purchases, according to EPFR Global data.

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.

Emerging market bonds in their own currencies have a similar justification to emerging market equities, especially since the currency depreciation against the dollar is likely to slow or stop altogether.