Sentences with phrase «duration bond returns»

Longer duration bond returns should reflect expectations about inflation.

Not exact matches

Relative return bond mutual funds and ETFs tend to have fairly constant durations.

Given those durations, an investor with 15 - 20 years to invest could literally plow their entire portfolio into stocks and long - term bonds, in expectation of very high long - term returns, with the additional comfort that their financial security did not rely on the direction of the markets, thanks to the ability to reinvest generous coupon payments and dividends.

DoubleLine Funds for a Rising Rate Environment — Total Return Bond & Low Duration Emerging Markets Fixed Income Funds

In bonds, the Market Climate continued to be characterized by unfavorable valuations and unfavorable market action, holding the Strategic Total Return Fund to a short 2 - year duration, mostly in Treasury inflation protected securities.

Over the long term the nominal return on a duration - managed bond portfolio (or bond index — the duration on those doesn't change very much) converges on the starting yield.

The PowerShares Total Return Bond ETF is an actively managed fund with the ability to invest in any number of fixed income securities with varying credit ratings, countries, and durations.

Total return bond targets remain at market neutral or shorter duration when compared with benchmarks.

In bonds, the Market Climate remains characterized by unfavorable valuations and unfavorable yield pressures, holding the Strategic Total Return Fund to a duration of less than 1 year.

However, even in this situation bonds almost always provide a positive return (if held for their duration) because bond yields and inflation rise together.

Strategic Total Return continues to carry a duration of about 3.5 years in Treasury securities (meaning that a 100 basis point move in interest rates would be expected to impact the Fund by about 3.5 % on the basis of bond price fluctuations), and holds about 10 % of assets in precious metals shares, and about 5 % of assets in utility shares.

Given that the Market Climate in bonds continues to be characterized by unfavorable valuations and unfavorable market action, the Strategic Total Return Fund continues to carry a muted duration of about 2 years, mostly in Treasury Inflation Protected Securities.

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.

Long - term bonds saw the worst returns during these periods, which makes sense given their higher duration (thus higher volatility and magnitude of loss).

While this only goes back to 1999, it would still be insightful to compare these two indexes on a year by year and aggregate basis for total return and volatility to get a true sense of the difference that treasury bond duration makes.

This is the process by which we put our research to work using the levers of credit risk and duration to make money in the bond market and to stabilize returns over the cycle.

The market will do so by increasing the price of the high quality, long duration bonds that we currently favor to levels that no longer offer a compelling return and margin of safety.

We are experienced providing duration matching portfolios with high levels of precision, while also determining the appropriate level of credit risk necessary to generate incremental returns relative government bond portfolio alternatives.

Investors who had the foresight (What does the Bond Market Know, May 7, 2014) and Bond Market Clues, May 14, 2014) to buy long duration bonds have earned many years» worth of returns in the last few months.

The iShares Barclays 10 - 20 Year Treasury Bond Fund (NYSEArca: TLH) slipped to its lowest price since March 2012, while its longer - duration counterpart, the $ 3 billion iShares Barclays 20 + Year Treasury Bond Fund (NYSEArca: TLT) has erased two years of gains to return to levels not seen since August 2011.

In bonds, yield levels have become somewhat compressed, finally prompting a reduction in our TIPS position to bring the overall duration of the Strategic Total Return Fund to about 1 year.

Those who recognized this error, and invested in long duration, high quality bonds have captured these outsized returns.

For now, the Strategic Total Return Fund continues to carry a limited duration of about 2 years (meaning that a 100 basis point move in interest rates would be expected to impact the Fund by about 2 % on the basis of bond price fluctuations), mostly in Treasury Inflation Protected Securities.

In bonds, the Market Climate was characterized by relatively neutral valuations and unfavorable market action, holding the Strategic Total Return Fund to a relatively limited duration of about 2.5 years.

Given that Treasury yields broke through levels that have been a fairly reliable barrier for several years now, it wouldn't be surprising to see bonds stage a «relief rally» here, but both yields and market action remain unfavorable overall, holding the Strategic Total Return Fund to a roughly 2 - year duration, primarily in Treasury inflation - protected securities.

While this can be true depending on the duration of bonds owned and / or for nominal returns over an extended period of time, it is

They evaluate factor portfolio performance based on excess return of constituent corporate bonds versus duration - matched U.S. Treasuries (thereby focusing on the default premium component of corporate bond returns).

Strategic Total Return continues to carry a duration of about 3 years in Treasury securities (meaning a 100 basis point move in interest rates would be expected to impact Fund value by about 3 % on the basis of bond price fluctuations), with about 10 % of assets in precious metals shares, and about 5 % of assets in utility shares.

Acquire the monthly total credit premium of each corporate bond as the difference in total (coupon - reinvested) returns between the bond and a duration - matched U.S. Treasury instrument.

Does the credit premium, measured by the difference in returns between U.S. corporate bonds and duration - matched U.S. Treasuries, exhibit momentum?

The point is that, when including the G Fund, duration can be increased in the bond portfolio for a greater expected return yet with similar volatility.

* Risk free return is the return that would be obtained if invested in a govt bond for the same duration as mutual fund.

For example, if short - term rates were to rise 1 %, you would lose about 2 % on a short - term bond fund (assuming a 2 year duration), and your total return over 1 year would be about 0 % (2 % interest minus 2 % decrease in value).

On Tuesday, in response to evidence of accelerating yield pressures, as well the recognition that QE2 was much further along than investors widely seem to believe, we substantially cut our bond duration to about 1.5 years in Strategic Total Return.

Strategic Dividend Value is hedged at about half the value of its stock holdings, and Strategic Total Return continues to hold a duration of just over 3.5 years (meaning that a 100 basis point move in interest rates would be expected to impact Fund value by about 3.5 % on the basis of bond price fluctuations), with less than 10 % of assets in precious metals shares, and about 5 % of assets in utility shares.

If you held the bond fund for a similar ten - year period (as the duration of a single bond), the funds annual total returns tend to approximate the starting yield.

The strategy of Strategic Total Return has never relied much on the existence of a bull market in bonds (indeed, our average bond duration has rarely exceeded 4 years since the inception of the Fund, and has often been limited to just 1 - 2 years).

Strategic Total Return carries a duration of about 3.5 years, meaning that a 100 basis point move in interest rates would be expected to affect Fund value by about 3.5 % on the basis of bond price fluctuations, about 10 % of assets in precious metals shares, and about 5 % of assets in utility shares.

Honorable Mentions: The model finds Guggenheim Total Return Bond Fund (GIBIX) is a good substitute for DBLTX and Shenkman Short Duration High Income Fund (SCFIX) is a serviceable substitute for MPHZX.

I don't think I'm prepared to double the duration of my bond holdings to get 20 or 30 basis points more in return.

I've learnt recently (thanks to Investing Intelligently and Efficient Market Canada) that bond investors should keep fund duration as short as possible because longer - term bonds offer little extra return for taking a higher interest - rate risk.

As interest rates rise, intermediate duration bonds are expected to slowly return to their proper place in the mid-term bucket, but for right now, an equally good choice for «safe» ballast in the mid-term bucket is cash.

And importantly, these bond funds (and their underlying bonds) may soon produce negative returns if they are not held for a sufficient duration.

Class A shares with sales charges performance reflects the maximum 5.5 % sales charge, with the following exceptions: Class A shares of Hartford Emerging Markets Local Debt, Hartford High Yield, Hartford Inflation Plus, Hartford Municipal Opportunities, Hartford Municipal Real Return, Hartford Strategic Income, Hartford Total Return Bond, Hartford World Bond, Hartford Schroders Emerging Markets Debt and Currency, Hartford Schroders Tax - Aware Bond, Hartford Schroders Emerging Markets Multi-Sector Bond and Hartford Schroders Global Strategic Bond reflect a maximum 4.5 % sales charge; Class A shares of Hartford Floating Rate and Hartford Floating Rate High Income reflect a maximum 3.0 % sales charge; Class A shares of Hartford Short Duration reflect a maximum 2.0 % sales charge.

This category is also home to portfolios that attempt to minimize volatility by maintaining short or ultra-short duration portfolios, but explicitly court significant credit and foreign bond market risk in order to generate high returns.

Bonds with shorter durations are less volatile and less sensitive to changes in interest rates, and therefore have a lower return.

Strategic Total Return has a duration of about 3 years in Treasury securities (meaning that a 100 basis point move in interest rates would be expected to affect Fund value by about 3 % on the basis of bond price fluctuations), just over 10 % of assets in precious metals shares, and about 5 % of assets in utility shares.

We believe the bond market is very efficient in discounting risk and return potential over time and in taking interest rate risk along the duration curve.

Their main performance metric is 7 - factor hedge fund alpha, which corrects for seven risks proxied by: (1) S&P 500 Index excess return; (2) difference between Russell 2000 Index and S&P 500 Index returns; (3) 10 - year U.S. Treasury note (T - note) yield, adjusted for duration, minus 3 - month U.S. Treasury bill yield; (4) change in spread between Moody's BAA bond and T - note, adjusted for duration; and, (5 - 7) excess returns on straddle options portfolios for currencies, commodities and bonds constructed to replicate trend - following strategies in these asset classes.

When bond yields go down, long duration debt / gilt funds give returns in double digits.