The main reason why South African listed property sector has delivered great returns over time in
a declining yield environment is mainly due to predictable and growing income streams.
Not exact matches
Crop
yields begin to
decline and farmers then have to use expensive fertilizers, which eat into their profits and further damage the
environment
At the same meeting, Norman Myers, a British
environment consultant, presented preliminary calculations that rising sea levels and
declining farm
yields could turn more than 300 million people into «environmental refugees» within 40 years.
While I still believe U.S.
yields are likely to rise modestly by year's end, last week's
decline in
yields is a reminder that we're in a «low - for - long» interest rate
environment.
We would not be the first to point out that there has been a rush toward safer, defensive stocks that are less - cyclical stocks and a rush toward bond substitute stocks like REITs, MLPs, etc., as investors search for
yield in a
declining interest rate
environment.
The concern here is that ultra low
yielding bonds can't
decline sustainably below 0 % and are therefore unlikely to provide much downside protection in the future whereas
environments like the 2008 financial crisis and before offered investors far more protection because
yields were higher.
They can also be useful in a rising interest - rate
environment, since their higher
yields could help offset a
decline in bond -LSB-...]
In a rising interest rate
environment, it is risky to have investments tied up in longer - term bonds when their value has yet to
decline as a result of higher
yields over time.
In a low interest rate
environment, bond and other fixed income
yields decline.
Performance could be particularly poor during risk - averse, flight - to - quality
environments when high
yield bonds commonly
decline in value.