Sentences with phrase «buy high yield bonds»

That's unusual, as is their policy where they don't buy high yield bonds.

When is it safest to buy high yield bonds — when spreads are tight, or when spreads are wide?

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.

So I don't see direct lending by the Fed, or buying high yield bonds, or offering protection on baskets of bonds as wise moves.

Given the new issue's lower yield, investors will buy the higher yielding bond, pushing up its price, lowering its yield.

Not exact matches

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.

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.

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.

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.

Tax reform could impact the high yield market and lead to a buying opportunity for municipal bonds.

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.

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.

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.

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?

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.

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.

It also can be used to compare the whole market against bond yields... In most cases the earnings yield of equities are much higher then in risk free treasury bonds Earnings yield is basically the amount of earnings you buy for every dollars worth of...

They've bought corporate and high yield bonds, property, shares, and other assets.

For starters, the ECB's $ 489 billion in three - year loans at 1 % interest gives banks a free lunch arbitrage opportunity (the «carry trade») to buy Greek and Spanish bonds yielding a higher rate.

For me, most of my bonds were bought when yields were much higher.

With the rest of the 20 %, I plan to buy individual California muni bonds that offer higher yields and yields to maturity to juice up the return.

As illustrated above, bond ladders work best when the yield on the bonds to be bought in the future years is higher than the current yield.

Would you buy a junk bond or a high yield bond?

Understand how corporate bonds often offer higher yields, and discover how it is important to evaluate the risk, including credit risk, that is involved before you buy.

A yield buyer is willing to buy more bonds at higher yields, all other things equal.

It was tough to buy more at a higher price, but it was still a great yield on a misunderstood bond.

Understand how corporate bonds often offer higher yields, and discover how it is important to evaluate the extra risk including credit risk involved before you buy.

In a different environment, or for financially secure companies, is it ever a good idea to make a leveraged buy of higher yielding bonds, where the bond sells at a discount and the coupon is greater than the margin interest rate?

For that reason, many looking at carry trading strategies will have to go out over the risk curve and borrow in a cheap major currency in order to buy a higher - yielding emerging market (EM) currency in order to earn a yield beyond that of higher - duration US Treasury bonds (considered safe yield).

The proximate cause of this sell - off is a reappraisal of risk in the credit markets, starting first at subprime but now having spread to the riskier parts of corporate credit, namely high - yield bonds and loans to finance buy - outs.

What's more, there are several index ETFs that allow Canadians to buy US corporate bonds with currency hedging, including the iShares U.S. IG Corporate Bond (XIG), the iShares U.S. High Yield Bond (XHY), and similar offerings from Claymore and BMO.

To a lesser extent, it has also gone into high - yield mutual funds that buy bonds rated below investment grade, known as junk bonds to those who are dubious of them.»

With today's higher rates, if you are looking to sell a treasury bond you purchased a couple years ago that yielded 2 %, nobody wants it because they can buy other bonds that yield 3 %.

This, though, was a function of the trend in interest rates; at the start of those periods, the funds were buying bonds with higher yields than bonds offer today.

Uridashi bonds became very popular in the 2000s and are often associated with the carry trade in which a loan is made in a low interest currency to buy instruments in a higher yield currency.

So we sold some high - yield bonds, and we bought investment - grade corporate bonds back in June.

If the new investor buys the bond for $ 900, while the coupon rate will still be 6 %, the yield will be higher — both because he only has to invest $ 900 to get $ 60 a year and because he'll get back $ 1,000 when the bond matures.

Investors have to be careful about buying individual high - yield bonds.

At the point when a new passive investor entered the market (or an existing passive investor increased their allocation), he or she bought high yield energy bonds in the same proportion as the active investors, and maintained their allocations similarly.

As for Bill Gross, the king of the bond kings, he recommends buying municipal bonds funds that trade at a discount of at least 10 % to net asset value (NAV) and a 5 % yield or higher.

Given this, if you buy bonds now (either directly or through a bond fund), you are not only paying a high price for the bond, but you are also locking in a smaller yield.

It is about buying short term money (by means of selling short term bonds etc.) and selling that fund for a higher yield.

Investors have a choice between stocks and bonds, and the Fed model assumes that if the yield on bonds is higher than the yield on stocks, investors will sell stocks and buy bonds until the yields converge, and vice versa.