The drop in mortgage rates has
come as bond yields have hit record low levels.
The move
came as bond yields surged higher.
Talk of a move to re-establish state fiscal oversight of the city's schools has circulated since the summer and
comes as bond ratings agencies have dropped CPS» debt deeper into junk status in advance of district plans to add more than $ 850 million to its overall debt load.
Not exact matches
That relationship has played out this year —
as interest rates have risen since January, the HYG high yield corporate
bond ETF has
come under pressure.
For example, interest - rate - sensitive income stocks and
bonds tend to do well
coming out of the trough, and more cyclical companies excel later on
as the recovery gains steam.
Finance Minister and former premier Taro Aso - who some suspect of dreaming of a
come - back of his own - said on Tuesday Japan had no plan to buy foreign currency - denominated
bonds as part of a monetary easing program.
Other players, such
as Wall Street
bond king Jeffrey Gundlach, see a lot more selling pressure to
come.
The fear is the tide has turned for
bonds as ultra-loose monetary policy in the United States and Europe is
coming to an end.
«Following the U.K. election, the relative risk investors saw in European
bonds came back and
as the situation in Greece develops, risks will hopefully unwind and
as we move into a certain environment, we can expect
bond markets to continue to normalize,» Thomas Buckingham, portfolio manager of the European Equity Group at JP Morgan Asset Management, told CNBC on Monday.
'' [They]
come into the world
as their parents» sole princess or prince,» wrote Jeffrey Kluger, author of the book «The Sibling Effect: What the
Bonds Among Brothers and Sisters Reveal About Us» in an article for «Time.»
The MOVE index — which looks at the volatility of
bonds — surged after the election,
as the sell - off and shakiness in fixed income
came to a head.
They do have one client, who they are pretty sure is short the
bonds, but that client is
as sketchy
as they
come.
That market participants have finally
come to terms with the Federal Reserve's normalization plans is just one of the reasons short - term
bonds are finally looking attractive again after years in the doldrums,
as we explain in our new Fixed income strategy A mighty (tail) wind.
Bill Dudley, who
as president of the Federal Reserve Bank of New York oversees big banks like JPMorgan and Citigroup, says bankers might police risk - taking by employees more aggressively if their compensation
came in the form of
bonds instead of stock.
But more than anyone, Mr. Schäuble has
come to embody the consensus that has helped shape European economic policy for years: that the path to sustained economic recovery for financially troubled countries is to slash spending, raise taxes when necessary and win back the trust of
bond markets and other investors by displaying commitment to fiscal prudence — even if that process imposes deep economic pain
as it plays out.
Among households with net worth of $ 500,000 or more, 65 % of their wealth
comes from financial holdings, such
as stocks,
bonds and 401 (k) accounts, and 17 %
comes from their home.
This
comes as the Fed is winding down its
bond holdings.
But
as investors bid up
bond prices, the yields
come down e.g. $ 10 dividend payment on a $ 100
bond = 10 % dividend yield, but if the
bond gets bid up to $ 200, the dividend yield is only 5 %.
Financial experts say the central bank's intervention seems to have catalyzed a virtuous circle:
As new governments
come in and promise to deliver spending cuts, tax increases and balanced budgets, once gun - shy banks have an added incentive to tap new financing from the central bank and jump back into
bond markets that they were running from just a few months ago.
Appetite for riskier assets such
as stocks and high - yield
bonds has been suppressed by a number of factors that have
come up around the same time, but the headwinds may be transitory, according to the New York - based investment bank.
The slated deal
comes as Lynas progresses talks with Mt Kellett and the other 9 convertible
bond holders, including Fortress Investment Group, about amending the terms of the
bond facility and extending the maturity.
And even if the indicator was valid (counterfactually), the article asks readers to accept
as given that earnings are properly reported here, that they will grow by nearly 50 % over the
coming year, and that investors are willing to key the long - term return they require from stocks to the yield on 10 - year
bonds, which has been abnormally depressed in a flight to safety.
We see muted returns across asset classes in the
coming five years,
as structural dynamics such
as aging populations help keep us in a low - return world, and we believe investors need to go beyond broad equity and
bond exposures to diversify portfolios in today's market environment.
Turnover can be thought of
as inclusions (
bonds coming in) and deletions (
bonds coming out) for an index over a period of time.
U.S.
bonds have been rallying for several months, but that
came to an abrupt end last week
as the yield on the 10 - year U.S. Treasury
bond rose to 1.95 % while two - year yields surged from 0.49 % to nearly 0.65 %.
As bond yields surged on Friday, high - yielding segments of the equity market such as utilities and REITs came under the most pressure, which shows that it won't take much of a rise in yields to derail their rall
As bond yields surged on Friday, high - yielding segments of the equity market such
as utilities and REITs came under the most pressure, which shows that it won't take much of a rise in yields to derail their rall
as utilities and REITs
came under the most pressure, which shows that it won't take much of a rise in yields to derail their rally.
The Federal government is expected to boost the amount it intends to borrow in the
coming months,
as the Treasury contends with declining tax receipts
as a result of the recent corporate and personal tax cuts,
as well
as widening budget deficits and a Federal Reserve that is slowly reducing its own holdings of government
bonds.
Interest rates hold steady
as Fed begins to sell
bonds The Federal Reserve's policy of so - called quantitative easing is
coming to an end
as the Fed announced this week it will begin selling the
bonds acquired in the wake of the 2008 financial crisis.
Higher - quality
bonds offer another advantage
as well: These investments typically
come with lower transaction costs, which can help manage the expenses associated with this strategy.
The news
comes as global debt markets were already selling off amid signs that central banks are starting to step back after years of
bond - buying stimulus.
When I talk to investors, both professionals
as well
as those who work outside finance, three mistakes seem to
come up again and again when it
comes to how
bond portfolios are managed.
It has been a long time since investors faced a sustained period of rising rates, so it may
come as a shock to be reminded that your
bond funds can lose money.
Meanwhile,
bond markets are concentrating
as key participants, such as asset managers, shrink in number but expand in size.8 As a result, market liquidity may increasingly come to depend on the portfolio allocation decisions of only a few large institution
as key participants, such
as asset managers, shrink in number but expand in size.8 As a result, market liquidity may increasingly come to depend on the portfolio allocation decisions of only a few large institution
as asset managers, shrink in number but expand in size.8
As a result, market liquidity may increasingly come to depend on the portfolio allocation decisions of only a few large institution
As a result, market liquidity may increasingly
come to depend on the portfolio allocation decisions of only a few large institutions.
Treasury yields fall after tepid eurozone inflation data spark German bund rally European government
bonds strengthened
as inflation weakensTreasury yields retreat on Thursday by falling rates in European government
bonds after eurozone inflation data
came in weaker than expected.
But with the 50 - percent allocation in a short - term municipal
bond fund, such
as the Near - Term Tax Free Fund (NEARX), they were around 6 percent short of the full returns from the S&P exposure,
coming in at $ 173,925.
So it should not
come as a huge surprise that according to Reuters, Ares Management senior executives: Antony Ressler and John Kissick were
bond traders during the late - 80s at Drexel and helped co-found Apollo Global Management alongside Leon Black.
If,
as expected, Gulf economies decide to tap global
bond markets to finance deficits, they may
come under further pressure to liberalize their economies.
The financing needs
coming due in the first quarter «imply that euro area banks will not have extra money
as a result of the three - year auction to purchase European sovereign
bonds, using a carry - trade strategy, because the amount of fresh cash is less than the amount of bank debt that will mature during the quarter», Powell wrote recently.
Bond funds become particularly problematic when rates get really low,
as hot money
comes flooding into the asset class — and when rates eventually rise and the hot money leaves — long term investors will be left with losses they can't simply wait out to become whole again.
It never ceases to amaze me how many people in blog comments, on forums etc, see
bonds as a 100 % nailed - on appalling investment over the next
coming years without any trace of humility.
In April, the long end of the yield curve underperformed, and
as municipal
bonds have more of their interest rate exposure
coming from the long end, this contributed to their underperformance.
The size of the package, the open - ended nature of the commitment and the willingness to purchase longer dated
bonds all
came as positive surprises to investors, driving this past week's strong equity rally.
The idea of a harmonised approach to impact reporting
came up
as Kommuninvest prepared its reporting after launching its debut green
bond in 2016.
A reduction from $ 60 billion to $ 30 billion per month was scheduled for the start of 2018, but the dovish tone of ECB President Mario Draghi's accompanying comments — emphasizing that the QE program could be extended beyond September 2018, and giving no indication of an end date —
came as something of a surprise to market participants, sparking a rally in eurozone
bonds and a moderate selloff in the euro.
The joint venture will take up closed - ended municipal -
bond funds in the next year or so that when the predicted
bond market collapse
comes, it will drive fund prices down to
as little
as 40 % of net asset value.
This theme is central to how we suggest positioning portfolios for the
coming year, including our preference for value shares over
bond proxies,
as this week's chart helps explain.
This recent instability
comes as yields have jumped from July record lows and investors have become concerned about the implications of higher
bond yields for equity valuations.
In the case of financial prices, such
as the exchange rate,
bond yields, commodity prices and share prices, of course, the adjustments occur at once,
as market participants can immediately adjust prices to reflect their expectations of what is to
come.
As a result, the majority of
bond returns in 2018 will likely
come from income, and not from price changes.
Soon the Fed will be forced to continue to raise interest rates in an attempt to save the dollar and stop inflation from exploding; The first causality will be to exacerbate the crash of the Real Estate market; then
comes the imploding of the stock and
bond markets, followed closely by the credit markets
as the take - over and privatizing craze
comes to an abrupt end.