Government
debt yields fell to multimonth lows, with the 10 - year yield slumping below 2.1 percent as stocks declined on global economic worries.
Not exact matches
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.
The
yield on 3 - month U.S. Treasury
debt, after initially
falling after the Fed's meeting, has gone from 0.01 % on Wednesday to a recent 0.04 %.
Cannon figures that the average credit quality of a the big banks lending portfolio probably
falls halfway between high -
yield debt and investment grade.
So while these «
fallen angel» bonds have the potential to be intrinsically higher quality than
debt originally issued at the junk or high -
yield level, undue structural selling pressure from the downgrade can cause them to sell at a discount.
Oil prices have
fallen more than 15 percent since March 4 to a six - year low of $ 42.3, wiping out $ 7 billion of market value of high -
yield debt issued by energy companies.
And international buyers, from Europe to Japan, are backing away from U.S. corporate
debt as a
falling dollar drives up hedging costs at the same time curtailed central - bank buying drives up global
yields.
With interest rates on low - risk investments
falling to low levels in many countries, investors have sought to maintain
yields by moving into higher - risk assets such as corporate
debt and emerging market
debt.
For the first time ever, Germany's 10 - year government bond
yield recently
fell below zero, joining negative government
debt issued by Japan, Switzerland and other countries.
Now that over $ 5 trillion of sovereign
debt (with credit risk rising, not
falling) trades with a negative
yield, we can fairly overlook bonds as an investible asset class.
European
yields have generally taken their lead from developments in the US over recent months, with
yields on German 10 - year government
debt also
falling toward 4 per cent in mid January, before increasing to 4.2 per cent after the Fed's late January monetary policy announcement.
The rise in
yields as prices
fall makes more German
debt eligible for ECB purchases, under its own arcane rules.
Democrats» efforts to include
debt restructuring powers for Puerto Rico in the House's massive omnibus spending bill
fell short,
yielding only a commitment from Republican leadership to work on legislation that would help the ailing island by next spring.
Earlier this week the
yield on Italian ten - year
debt rose to a record seven per cent before
falling back by around 0.5 percentage points.
It seems like investors are hoping to sell the
debt elsewhere and make a profit when, and if, prices go up when
yields fall.
Another way to say it is that if the short end of the Treasury
yield curve
falls dramatically, don't expect the
yields corporate
debt to follow suit to anywhere near the same degree.
The returns and
yields on government issued
debt instruments experienced a hike although the benchmark 5 - year government
yield fell by 115 basis points.
U.S. Dollar
Falls to 15 Month Low against Basket of Major Currencies The U.S. Dollar
fell to a 15 month low against a basket of currencies on Tuesday as concerns about
debt issues in Dubai subsided, leading to increased demand for higher
yielding currencies.
I would rather prefer to invest in
debt mutual funds, hoping bond
yields to
fall once the economy stabilizes post next year's elections.
While bond funds that own a wide variety of high
yield debt will include some
Fallen Angel bonds, the Market Vectors
Fallen Angel HY Bond ETF (NYSEArca: ANGL) is the only fund that tracks these former investment grade bonds exclusively.
Issuance plummets as
yields rise and prices
fall for risky
debt.
Mortgage rates tend to rise and
fall along with the
yield, or effective interest rate, on U.S. government
debt.