Sentences with phrase «high bond valuations»

Not exact matches

With equity valuations at historic highs and government bonds barely eking out a return, junk bonds offer solid yields at a good price, he reasons.

yields will hit the highs on close end of the day... equity markets setting up to be slammed tomorrow maybe but today they have run over weak shorts in the face of rates... the federal reserve see's this and again will wonder if they are behind on hikes, strong data, major expansion in credit, lack of wage growth rising bond yields and ballooning debt... rates will go much higher and equities will have revelations as to what that means for valuations

The two largest funds in the segment — the $ 15 billion iShares iBoxx $ High Yield Corporate Bond ETF (HYG) and the $ 9 billion SPDR Bloomberg Barclays High Yield Bond ETF (JNK)-- have faced sizable asset outflows as investors fret over high valuations and rising interest raHigh Yield Corporate Bond ETF (HYG) and the $ 9 billion SPDR Bloomberg Barclays High Yield Bond ETF (JNK)-- have faced sizable asset outflows as investors fret over high valuations and rising interest raHigh Yield Bond ETF (JNK)-- have faced sizable asset outflows as investors fret over high valuations and rising interest rahigh valuations and rising interest rates.

So if investors expect short - term rates to be zero for another 4 years, it would be reasonable for stocks and bonds to be about 16 % higher than historical valuation norms.

Its stock valuation has dropped by more than half since July 2015; in January, it posted its first full - year loss since 2008; and one of its many tranches of bonds — one specifically designed to be a high - risk, high - reward safety valve in times of trouble — has recently begun to crash.

That's not the case with US equities and bonds, which are approaching record - high valuations.

We aim to add value in the Corporate Advantage Fund by generating yield using a relative valuation approach and investing in investment grade corporate bonds, high yield bonds, preferred shares, and other fixed income securities.

We prefer selected subordinated financial debt within European credit and favor high - quality U.S. credit and emerging market debt over government bonds, but credit valuations are elevated across the board.

Because credit and default risk are the dominant drivers of valuations of high yield bonds, changes in market interest rates are relatively less important.

Yields on high - yield corporate bonds narrowed (centre panel) and record low government bond yields pushed up valuations of risky assets (right - hand panel).

If valuations remain high or increase, at some point higher yields may make bonds more attractive relative to equities.

Putting aside the performance of bonds during the bear market beginning in 1980 (both because the starting yields on Treasuries were so high but also because the bear market was relatively mild as the decline began from relatively low levels of valuation), what's interesting about the above chart is how dependably bonds protected a portfolio during equity bear markets.

This recent instability comes as yields have jumped from July record lows and investors have become concerned about the implications of higher bond yields for equity valuations.

Meanwhile, emerging market bonds that make up the J.P. Morgan EMBI Global Core Index, currently offer similar yields and may benefit from global reflationary trends despite the potential challenge of higher valuations and a rising U.S dollar in the short term.

We see long - term opportunities in EM bonds, but higher valuations make us more balanced in the shorter term.

We prefer selected subordinated financial debt within European credit and favor high - quality U.S. credit and emerging market debt over government bonds, but credit valuations are elevated across the board.

Historically, stocks do tend to trade at higher valuations when bond yields are lower.

With equity valuations high and bond yields low, investors are parsing the latest news and economic data for hints to the future.

That's because bond yields and stock valuations tend to track each more closely at higher levels of inflation.

Vertical factor: spread of Baa bond yields over Aaa bond yields — Hypothesis: When spreads are high, stock valuations tend to be low.

Horizontal factor: Yield on Baa bonds — Hypothesis: When yields are high, stock valuations tend to be low.

But high valuations and a strong rally in 2016 could see some profit taking in the high yield sector, so we generally prefer investment grade bonds.

Valuations also show the risk of owning bonds (and bond proxies) could rise further, as market uncertainty and easy monetary policy potentially drive valuations of interest - rate sensitive asseValuations also show the risk of owning bonds (and bond proxies) could rise further, as market uncertainty and easy monetary policy potentially drive valuations of interest - rate sensitive assevaluations of interest - rate sensitive assets higher.

Investors seek more risk in equities as bond yields get low... And higher equity valuations make bond investors believe it's just as safe as it was before when both debt and equity valuations were lower (and objectively less risky).

Global corporate bond valuations are elevated and insufficient to compensate for risk, but there will continue to be selective opportunities to take high conviction positions.

The optimal time to exit a bond is not when its valuation is the highest.

Given the current high valuations of equities, and potential interest rate risk for bonds, I've decided to take a gradual, but accelerated, approach to rebalancing our portfolio.

High stock valuation levels can mean lower expected stock returns, and low bond yields usually point to lower future bond returns.

High yield bonds may involve greater levels of credit, liquidity and valuation risk than higher - rated instruments.

Valuations are high, but not implausibly high given real yields on bonds.

The 30 - Year Safe Withdrawal Rate with stocks and corporate bonds is higher than 5 % (plus inflation) provided that you vary allocations with valuations.

When this happens (all business cycles eventually do come to an end) we'll be left with double valuation headwinds: falling earnings forcing high valuation multiples higher and higher stock / bond relative PE ratios.

Nevertheless, the higher valuations for both stocks and bonds may point to an increased potential for unexpected developments to disrupt the markets in the months ahead.

Attracted by higher yields than on safer bonds, and with lower valuations than on stocks currently, portfolio managers and individuals alike have poured money into junk bonds this year.

ETFs & Stock Screening, Stock Valuations & ETFs, High Yield Bond ETFs, Growth vs. Value ETFs, ETF Allocations

This means that securities that generally do well in a solid growth backdrop, such as stocks and high - yield bonds, are likely to underperform as they are dependent on a level of growth to support their valuations.

Putting aside the performance of bonds during the bear market beginning in 1980 (both because the starting yields on Treasuries were so high but also because the bear market was relatively mild as the decline began from relatively low levels of valuation), what's interesting about the above chart is how dependably bonds protected a portfolio during equity bear markets.

That said, the risk premium factor shows that the largest gains tend to come in the southwest quadrant: low equity valuations and high Baa bond yields, which is a perfect set - up for mean reversion.

The present environment is characterized by unusually overvalued, overbought, overbullish conditions, with rising 10 - year Treasury bond yields, heavy insider selling, valuations on «forward earnings» appearing reasonable only because profit margins are more than 70 % above historical norms (fully explained by the negative sum of government and personal savings as a share of GDP), with the S&P 500 at a 4 - year market high, in a mature market advance, with lagging employment indicators still positive but more than half of all OECD countries already in GDP contraction, Europe in recession, Britain on the cusp, and the EU imposing massive losses on depositors in order to protect lenders in an unstable banking system where Cyprus is the iceberg's tip.

Debt Levels & ETFs, Treasury Bond ETFs, High Yield Bond ETFs, ETFs & Stock Valuations, ETFs & Corporate Revenues, Stock Buybacks & ETFs Please click here to listen to the show.

ETFs & Diversification, Small Cap Stock ETFs, ETFs & Market Breadth, Stock Valuations & ETFs, ETFs & Fed Policy, Credit Spreads & ETFs, High Yield Bond ETFs

Debt Levels & ETFs, Treasury Bond ETFs, High Yield Bond ETFs, ETFs & Stock Valuations, ETFs & Corporate Revenues, Stock Buybacks & ETFs

So let's change the scenario here because I actually think that bonds are increasingly important to investors when stock valuations are high.

High yield bonds may involve greater levels of credit, liquidity and valuation risk than for higher - rated instruments.

With yields on «risk - free» assets such as government bonds so low, the higher valuations for risk - on assets like equities might be justified.

There are many talking about how high valuations are, but investors have not responded in frenzy mode yet, where they overallocate stocks relative to bonds and other investments.

Bonds have low rates of returns, and equities have high valuations.

In a sort of mirror image of the 1999 Dot - Com bubble, when investors overpaid for high risk, non-yielding stocks, the market today is characterized by eye - popping valuations for «safe» assets from bonds of all types to the most conservative sectors of the stock market.

Meanwhile, the historical data really doesn't provide much in the way of examples for times when both stock valuations were high while bond yields were simultaneously low.

However, with Welltower trading near all - time highs and many bond - like stocks trading at premium valuation multiples relative to history, short - term, more risk averse investors need to keep in mind the risk of a short to medium - term correction if rates do begin to rise and cause capital outflows for bond - like stocks.