Sentences with phrase «flight to quality»

Perhaps more importantly, in addition to the market's relentless advance, there has also been a clear flight to quality — especially with dividend growth stocks.
Large flight to quality flows into the dollar and yen also risk bringing on alarm about emerging markets and a return to concern about currency wars.
Just one flight to quality event in a decade can more than pay for the hedged portfolio.
Credit provides the potential for both diversification and incremental returns: While rate - driven government bonds have been rewarded during flight to quality periods, credit has been rewarded in times of strong economic growth.
A brief flight to quality increased demand for U.S. Treasuries (S&P U.S. Treasury Bond Index), municipals (S&P Municipal Bond Index), and investment - grade corporates (S&P U.S. Investment Grade Corporate Bond Index), and U.S. equities briefly dipped back into the red.
Credit provides the potential for both diversification and incremental returns: While rate - driven government bonds have been rewarded during flight to quality periods, credit has been rewarded in times of strong economic growth.
The aftermath of the vote was swift and brutal: Prime Minister David Cameron resigned, global financial markets sold off sharply with a massive flight to quality, and the British pound dropped sharply to touch a three - decade low of $ 1.3229.
At the same time, fund - raising data shows that LPs» flight to quality began in the aftermath of the global economic crisis, in 2009.
«The disappointing release caused an immediate flight to quality resulting in the 10 - year Treasury yield dropping 10 basis points on Friday.
Just as with U.S. investors, volatile markets have prompted an international flight to quality — Class A, CBD offices with stable leases, medical and biotech sites, very select luxury retail like Rodeo Drive, and triple - net retail properties.
â $ œThe market is predicting extreme bifurcation as the capital flight to quality creates a greater separation between the trophy and less desirable assets.
A clear flight to quality is taking place, accelerating a shakeout among GPs (see Figure 1.2).
And there's a flight to quality in the short end and in the long end, it would be rising, in terms of deficits and supply weighing on the long end.»
So as the trend is already pointing to, expect lower risk assets at first, lower bond yields on a flight to quality but then higher yields once his spending plans are digested and an equity market that might at some point benefit from reflationary policies but with greater risks (lower trade and global openness) and higher volatility.
There is a «flight to quality
Bill Blain, a senior fixed income strategist at Mint Partners, explained that the rally in bonds is a carryover of last year's flight to quality and will send yields even lower.
In such periods, there is a flight to quality by investors that drives down the rates on presumptively risk free investments like Treasury bills.Conversely, as was the case in the post-Lehman Brothers crisis, banks become less creditworthy and liquidity in the interbank lending market dries up.
However, a weaker opening to US stocks (S&P -25 to 2611, higher 10 - year yield raising concerns over higher borrowing costs slowing the economy) led to a flight to quality that pushed the 10 - year yield down to 3.007 %.
Also noteworthy is that an environment of increased risk aversion and flight to quality will complicate Japan's problem of generating inflation, and China's challenge of attaining currency stability.
From Shanghai to New York, stocks have been rocked by recent volatility, and «flight to quality» has become an investor catchphrase in global markets.
When a flight to quality occurs, this factor historically has served as an important defensive tool in portfolio construction.
If this is indeed the bottom, and that is a huge IF, my hope is that on the next big crypto run we will see a flight to quality.
When you hear about «flights to quality» during difficult economic times, Colgate is exactly the kind of stock that investors cherish.
However, accelerating equity losses set off a flight to quality that saw yields fall back to 2.70 %.
Conversely, when their risk outlook changes, and they become fearful, pulling money from speculative areas of the market in favor of «flight to quality» investments such as cash and high - quality fixed income.
«Flight to quality and safe haven» status are behind the stock's early - 2016 rebound, Raymond James analyst Budd Bugatch wrote in a Friday research note.
I think the Trump tariffs are pushing up the precious metals at this time as they are used as a flight to quality and if you have read any of my previous blogs you understand that I think historically speaking silver is very cheap.
A «flight to quality» during times of economic uncertainty that drives a negative correlation between stock returns and bond returns.
«It's a tough box office environment for non - studio films, and there's a flight to quality in the international marketplace.»
This flight to quality often leads to a shift away from more value oriented securities.
If the US Federal Reserve lifts interest rates next month, a flight to quality could follow.
«Many market watchers suggest that the credit crunch crisis caused a «flight to quality» which pushed up Treasury prices — and that, as the crisis eases, investors should reconsider their Treasury positions,» said Michael Sapir, ProShares Chairman.
As the reasons for the flight to quality go away or become resolved, the money more often than not makes its way back into the stock markets pushing them back up.
This could spark a flight to quality, which would favor higher - quality corporate bonds, government - backed mortgage bonds or even Treasuries.
«The flight to quality effect is dominating,» said Walt Schmidt, senior vice president of FTN Financial Capital Markets.
What is highly interesting to note here is the flight to quality during times of distress.
Time and time again if the stock market suffers there is consitentantly a «flight to quality» in the bond market where bond prices rice and inversaly mortgage rates go down.
This flight to quality movement also impacted credit spreads, which widened for both investment grade and high yield corporate bonds, negatively impacting the returns of bonds in those sectors.
As a result, current market sentiment indicates a «flight to quality»; that is, a conscious move to safer, less - volatile and shorter duration investments.
Since the subprime mortgage crisis, the flight to quality is evident.
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