The extra yield investors demand to hold securities backed by government - guaranteed mortgages has risen to 0.24 percentage point this year, from 0.15 percentage point at the end of 2016, a relatively modest widening.
Not exact matches
TIPS
yields rise only with inflation, so
investors aren't getting the
extra income they expected.
By looking at the difference in
yield between a corporate bond and a Treasury of the same maturity, you can get an idea of the
extra premium
investors require for the
extra credit risk inherent in the corporate bond.
The amount of
extra yield over Treasuries provided by high
yield bonds recently was 3.22 %, which is the lowest it has been in 10 years and makes some
investors cautious.
U.S. Treasuries are becoming less attractive to non-U.S.
investors, as the increased cost of currency hedging is wiping out the
extra yield Treasuries offer.
But it was the jump in US 2 - year note
yields that provided the
extra boost to the US dollar as shorter - dated tenors provides
investors with better goalposts for determining how the market is viewing Fed sentiment
Investors demanded the most
extra yield in almost a month to buy junk debt, according to a Bloomberg Barclays index fixed late Wednesday.
Therefore, given the newly initiated distribution policy, and the company's positive financial outlook,
investors looking for
extra income may find this high -
yielding equity of interest.
Consequently,
investors require a higher
yield to compensate for taking the
extra risk.
However, Graham's advice for bonds is extremely relevant today, he warns that when bond market
yields are low,
investors often look to steal an
extra 1 - 2 % in
yield buy purchasing low grade bonds.
At the time, stocks were expected to have a higher dividend
yield than bonds to compensate
investors for the
extra risk carried by equities.
A Nov. 25 Reuters poll suggested
investors would expect to demand an
extra 25 basis points in
yield to hold Italian debt over its German equivalent if the reform is rejected, with the euro dipping 1.25 %.
The amount of
extra yield over Treasuries provided by high
yield bonds recently was 3.22 %, which is the lowest it has been in 10 years and makes some
investors cautious.
Even seasoned
investors that don't exclusively play in the credit markets are working
extra hard for
yield.
At the time, stocks were expected to have a higher dividend
yield than bonds to compensate
investors for the
extra risk carried by equities.
This is potentially good news for
investors looking for
extra yield and the potential for capital gains.
Reset preferreds let
investors capture that change in
yields and get a little
extra return besides.
I allocated
extra capital in my recent purchases: Prospect Capital Corp (PSEC), American Realty Capital Properties Inc. (ARCP), Pimco Corporate & Income Opportunity Fund (PTY), iShares Mortgage Real Estate Capped ETF (REM) and Omega Healthcare
Investors, Inc. (OHI) where I went really aggressive on
yield and took a calculated high risk, considering the long - term horizon of my portfolio.
A risk premium is the return in excess of the risk - free rate of return an investment is expected to
yield; an asset's risk premium is a form of compensation for
investors who tolerate the
extra risk, compared to that of a risk - free asset, in a given investment.
As always, we encourage
investors to take the
extra step and dive deep under the hood of these high
yielding companies.
With Canadian 10 - year bonds currently offering a paltry 4 %
yield, this
extra return is a welcome bonus for income - hungry
investors.
Goldman and other investment banks may have facilitated that greed, but the institutional
investors happily took down the
extra yield.
Crossovers allow
investors to still have the quality associated with investment grade, while gaining a few
extra points of
yield.
The Charles Schwab High
Yield Investor Checking account has all the benefits and flexibility of a VIP banking account, but with none of the fees, minimum balances, or
extra hassles.
That provides
investors with some assurance of stability, which subsequently allows them to use higher levels of debt to finance their purchase and generate
extra yield, adds Allan Pollack, chairman of Chicago - based Providence Management Corp..