The upscale Santa Monica Place in Santa Monica, Calif. had
a debt yield of about 8.5 percent, and even that is a bit higher than it would have been had the landlord secured financing anywhere between 2006 and 2008, Jellinek says.
CMBS lenders also prize malls with high occupancy levels, 130 to 135 coverage on the net operating income (NOI) and
a debt yield of 10 percent or better, he notes.
«Bascom was able to access mezzanine and preferred equity capital available in today's market and obtain financing on The Breakers Resort by adding a parcel of developable land as collateral, resulting in a blended cost of capital of less than 5 percent and a combined
debt yield of 6.25 percent,» said Erland in a statement.
Not exact matches
Yields on Greek
debt soared and, since 2009, Greece has relied on on the largesse
of the rest
of the Eurozone, most notably financially conscientious Germany, to remain solvent.
The decision by the Reserve Bank
of India came close on the heels
of weak investor interest in two recent auctions that led to a spike in sovereign
debt yields.
The decision by the Reserve Bank
of India, announced late on Friday, came close on the heels
of weak investor interest in two recent auctions that led to a spike in sovereign
debt yields.
The Financial Times recently reported that negative
yielding government
debt now exceeds $ 11.7 trillion — approximately 25 %
of total global government
debt.
The bonds
of iHeartMedia have long been in the basket
of «distressed
debt,» meaning their prices have fallen so far to where their
yields are at least 10 percentage points higher than equivalent Treasury
yields.
Many people have bought into this space because it's one
of the only places to get decent
yield, but she points out that a number
of companies only offer corporate
debt because
of market demand.
«If they do target aggressively the 2 percent inflation target, and undertake a significant amount
of QE, that may have an impact on underlying JGB (Japanese government bond)
yields as investors become concerned over Japan's
debt,» he said.
Low sovereign bond
yields have long helped the government finance its
debt, thus, higher
yields would undermine the sustainability
of its fiscal position, analysts said.
The sell off in the market for high
yield debt, or junk bonds, is now hitting a type
of structured bond that is similar to the the type that blew up in the financial crisis.
Second, while it makes sense that an environment in which investments, like government
debt, are
yielding a smaller return might cause people to spend less today in order to make their retirement goals, there just isn't a lot
of evidence that this happens in the real world.
If mortgage interest rates were higher, paying down this
debt would make more sense, but with rates at about 4 percent, investing that money could
yield a higher rate
of return.
The Fed policymakers reason that a bigger supply
of debt should put downward pressure on Treasury prices and deliver a corresponding lift to
yields.
The average BB rated bond, which is what Dell's current
debt is rated, is trading at a
yield of 5.8 %.
That might lower the amount
of debt entering the high
yield market.
Energy companies have made up a good portion
of debt issued in the high
yield market over the past few years.
Standard and Poor's estimates the federal government's partial paralysis cost $ 24 billion, and consultancy IHS Global Insights said on Wednesday that the spike in short - term interest
yields witnessed in the week
of Oct. 14 alone will add $ 114 million to the federal
debt.
In other words, the combination
of a reach for
yield, tax incentives, and the belief that default is impossible all contributed to a
debt crisis that is likely not going to end well.
The sharp jump in
debt yields in tandem was mirrored by a rally in commodity prices, which suggests that investors are becoming less worried about the risks
of deflation.
That's also making Austrian bond
yields spike, ushering in a new phase
of the sovereign
debt crisis from the East.
Cannon figures that the average credit quality
of a the big banks lending portfolio probably falls halfway between high -
yield debt and investment grade.
The
yield on Greece's three - year bond, which has surged from 4 % to 13.5 % since October, is now reflecting serious expectations that the country may end up outside
of the Eurozone and unable to repay its euro - denominated
debts.
PeerStreet's view is that by performing its own due diligence on borrowers using a software - based underwriting engine, the company can match high - quality
debt with a growing crop
of yield - hungry investors.
In case
of a serious default, one in which the U.S. postpones or suspends any
debt payments, «Canadian
yields could actually drop as a result
of both the economic slowdown and safe - haven flows,» Shenfeld wrote in a recent research note.
Lewis, fund's chief investment officer, spent nine years at Citigroup as a director
of the bank's global special situations group, a $ 5 billion prop - trading group that specialized in distressed
debt, high -
yield bonds, and value equity.
The stocks that hedge funds have largely ignored tend to be much larger than the hotels, have less
debt, grow earnings more slowly but consistently, and pay bigger dividends (an average
yield of nearly 3 % for the S&P 500 constituents, compared with 2 % for the index overall).
Perth - based mining contractor Barminco has refinanced its existing
debts through an issue
of high -
yield notes in the United States.
«Perversely, we've spent the last 20 years paying a premium for [the stocks
of companies with] high
yield debt,» she said.
Given Osiris's strong five - year record
of growth and profitability, Bowers was able to help make Miller's wishes come true: he structured a deal that raised $ 13 million from a large local pension fund — the Pennsylvania Public School Employees Retirement System (see «What Pension Funds Want,» [Article link]-RRB--- by selling a package
of subordinated
debt and convertible preferred stock, which included a fixed interest rate and dividend
yield.
Yields in the $ 14 trillion market for U.S. government
debt touched record lows in 2016, driven by years
of aggressive central bank intervention in the wake
of the 2008 - 2009 financial crisis to keep interest rates low to stimulate the economy.
«And just one example might be 18 percent
of the high -
yield debt issued in the last year is energy.
U.S. government
debt prices rebounded from a slight dip earlier on Wednesday, weighing on
yields, before the release
of July's Fed minutes.
Second, the average time to maturity on U.S.
debt is six years, meaning that most
of the low -
yielding bonds now on the books will be exchanged for more expensive
debt over the next decade.
But cross-country differences in equity returns declined to pre-crisis levels while the range
of yields on
debt securities issued by banks and by non-financial corporations also narrowed, suggesting that there is some integration at least in prices
of financial instruments.
The
yield on a Treasury bill represents the return an investor will receive by holding the bond to maturity, and should be monitored closely as an indicator
of the government
debt situation.
The 10 - year U.S. Treasury
yield rose 5.2 basis points to 3.035 percent on Wednesday, driven by worries about the growing supply
of government
debt and inflationary pressures from rising oil prices.
In the Doug Purvis Memorial Lecture, Governor Stephen S. Poloz shows how changing the mix
of monetary and fiscal policies can
yield the same outcomes for growth and inflation, but lead to different results for public sector and private sector
debt levels, which can impact financial stability.
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
Treasury prices rise, pushing
yields lower, on Monday after solid appetite for two batches
of government
debt auctions see strong bidding, ahead
of what's set to be a deluge
of sales
of government
debt in 2018.
Short - dated Treasury
debt now provides an attractive real return as
yields now stand firmly above realized and target levels
of inflation.
And in fact, the Fed could theoretically control the entire
yield curve
of US government
debt if it merely targeted a rate.
debt obligations
of the U.S. government that are issued at various intervals and with various maturities; revenue from these bonds is used to raise capital and / or refund outstanding
debt; since Treasury securities are backed by the full faith and credit
of the U.S. government, they are generally considered to be free from credit risk and thus typically carry lower
yields than other securities; the interest paid by Treasuries is exempt from state and local tax, but is subject to federal taxes and may be subject to the federal Alternative Minimum Tax (AMT); U.S. Treasury securities include Treasury bills, Treasury notes, Treasury bonds, zero - coupon bonds, Treasury Inflation Protected Securities (TIPS), and Treasury Auctions
MF Global's stock price declined two - thirds in the final week
of October 2011 and its credit rating was reduced making its
debt high -
yield debt following huge quarterly losses.
Roughly $ 10 trillion worth
of global government
debt, in fact, now carry low to subzero
yields.
Yields on U.S. government bonds are already some
of the highest in the sovereign
debt markets and are attractive to non-U.S. buyers on an absolute and relative basis.
The $ 1.2 trillion market for U.S. junk bonds
yields about 6.6 percent, double what's offered by higher - rated company
debt, according to Bank
of America Merrill Lynch index data.
Most
of the capital provided to these companies comes from high -
yield («junk») corporate bond sales, preferred share offerings, and
debt.
Our team
of credit professionals deliver sales and trading capabilities across a wide range
of fixed income asset classes including high
yield, distressed and investment grade bonds, convertible bonds, public and private corporate securities, leveraged loans and emerging market
debt.