Sentences with phrase «high demand for bonds»

Periods of high demand for bonds often result in lower mortgage rates.
With the bank's high demand for bonds, yields, already low, have been pushed to nearly zero or lower.
With the bank's high demand for bonds, yields, already low, have been pushed to nearly zero or lower.
With funds managers holding about 15 - 20 per cent of assets in domestic bonds, the change in the composition of household assets has translated into higher demand for bonds — a demand which is no longer being met by government issues.

Not exact matches

It is possible there is enough of a demand for «green» debt investments that the province can sell this debt for a higher price than it would get for non-green bonds, thereby reducing their borrowing costs.
New bond investors would probably demand a higher return to compensate for the added costs of investing in bond funds.
Strong investor demand for CVS Health's $ 40 billion M&A bond gave a shot of confidence to the U.S. high - grade bond market.
Shenfeld thinks the loonie will stay around par, but could get as high as US$ 1.04 in 2013, thanks to continuing demand for Canadian - dollar bonds from foreign countries.
Bonds tumbled as upbeat consumer spending data lowered demand for U.S. debt, pushing the two - year note yield to its highest level since 2011.
Meanwhile long rates are finally beginning to nudge higher despite demographic trends, structurally elevated risk aversion, stubbornly low inflation, strong institutional demand for long - dated bonds and quantitative easing (although less relevant to Canada).
Fears that the current crop of earnings may be as good as it gets and that higher bond yields will sap demand for equities, all...
Since bonds are generally considered to be less risky, and a higher interest rate generally increases demand for bonds, that may hurt demand for stocks.
For weeks, investors have been demanding higher bond yields.
Research and monitoring demands Current and accurate information can be more difficult to obtain for high yield bonds.
This would usually hurt demand for bonds, sending yields higher across the board.
The dollar bond market has turned cold for Indian firms after a record 2017, with rising global interest rates, geopolitical concerns and market volatility prompting would - be financiers to demand either a higher yield or invest only in short - term paper maturing in two years.
Yet low nominal gross domestic product growth and aging populations argue for lower bond yields than in the past — and sustained demand for high quality bonds.
On the one hand, declining bond market activity and the persistence of low - risk arbitrage opportunities imply liquidity is impaired, while, on the other, low volatility and high demand for risky assets suggest that liquidity is alive and well.
-LRB-...) The strength of demand for eurozone «periphery» debt reflected increased investor appetite for higher - yielding government bonds as well as rising confidence in the creditworthiness of eurozone economies.
With a normal yield curve, bond buyers essentially demand a higher rate of interest in order to lend money for 30 years than they will to loan money for 30 days since they will be locking up their money for a longer period of time.
And just as long - term bond prices decline as interest rates rise (because new investors demand the yield on old bonds matches those of newly issued, higher yielding ones), the same can be true (though not always) for triple net lease REITs such as STORE Capital.
I interpret this as a signal that demand for fixed income will probably stay high — even as the potential return from bond portfolios declines amid rising rates.
Not only do long chain fatty acids make higher demands on the body for utilizing them, the body is not able to easily transform these fake saturated fats with «trans» bonds versus naturally occurring saturated fats with «cis» bonds.
Following the market correction, investors are demanding higher premiums in exchange for accepting lower grade corporate bond issues.
It's in high demand so you can charge a premium for that old bond and make a profit.
Higher rates make bonds more attractive and undercut demand for utilities and high - dividend stocks.
As is the case for bonds and other fixed income instruments, investors have the right to demand higher returns the longer their money is locked away.
Also, with central banks outside the United States undertaking large scale buying of bonds through quantitative easing, demand for bonds will probably stay high for some time.
Municipal bond buyers typically demand a higher yield for this illiquidity — «Liquidity Premium».
This will cause the demand for higher - yielding bonds to increase, forcing bond prices higher.
I interpret this as a signal that demand for fixed income will probably stay high — even as the potential return from bond portfolios declines amid rising rates.
So when a company needs to raise money, investors will demand an interest rate that's a bit higher than what Treasury bonds are offering in order to compensate the investors for the risk that the company goes bankrupt.
And just as long - term bond prices decline as interest rates rise (because new investors demand the yield on old bonds matches those of newly issued, higher yielding ones), the same can be true (though not always) for triple net lease REITs such as STORE Capital.
Yields are at historic lows and demand for bonds have remained quite high ever since the credit crisis of 2007 - 08 for a variety of reasons:
The reasons for those higher rates involve everything from extraordinary fiscal stimulus via trillion dollar deficit spending, significant changes to the tax structure, an increase in Treasury bond supply, central bank quantitative tightening (QT), a decrease in Treasury bond demand from other countries as well as inflationary pressures.
Even as junk bond yields fell into the 6 % range, investor demand for bonds held up well, and the SPDR Barclays High Yield Bond ETF (NYSEMKT: JNK) and iShares iBoxx HY Corporate Bond ETF (NYSEMKT: HYG) were among the best - performing funds with returns of around 11 % to 1bond yields fell into the 6 % range, investor demand for bonds held up well, and the SPDR Barclays High Yield Bond ETF (NYSEMKT: JNK) and iShares iBoxx HY Corporate Bond ETF (NYSEMKT: HYG) were among the best - performing funds with returns of around 11 % to 1Bond ETF (NYSEMKT: JNK) and iShares iBoxx HY Corporate Bond ETF (NYSEMKT: HYG) were among the best - performing funds with returns of around 11 % to 1Bond ETF (NYSEMKT: HYG) were among the best - performing funds with returns of around 11 % to 12 %.
In regard to the municipal bond market, the reduction of SALT deductibility at the federal level ($ 10,000 cap) should increase demand for tax - exempt bonds in those higher - taxed states.
If for example, banks were having trouble floating bonds because the spread of corporate bonds was too high versus government bonds (yields were very high because prices are low due to little demand to own these bank issued bonds) they could buy these types of bonds to get money flowing in this space if the central bank so desired.
It indicates the demand for the bonds is greater than the supply, and that the market is willing to pay a higher price for them.
There is a lot of demand for AAA bonds if they have a high enough yield spread over Treasuries.
The demand for incremental yield has started to outweigh the traditional risk / return model in the corporate bond market, as investors have begun taking on a relatively high amount of risk for a relatively low amount of incremental yield.
The increasing onset of demand for longer - maturity bonds and the lack of demand for shorter - term securities lead to higher prices but lower yields on longer - maturity bonds, and lower prices but higher yields on shorter - term securities, further inverting a down - sloped yield curve.
The low rate environment and continued demand for yield generating asset classes has pushed the S&P U.S. Issued High Yield Corporate Bond Index returns to 4.32 % year to date as yields have fallen by 38bps since year end.
Another sign of the prevalence of risk aversion was the high demand for global bonds, which pushed bond yields into negative territory.
When that happens, a firm's already issued bonds will generally fall in price as investors demand a higher yield for the new risks associated with holding that bond.
One way to interpret this is that the market has a high demand for safe assets and so the central banks, by buying bonds with reserves, increase the supply of very safe assets, ie.
Supply outstripping demand for any product translates to lower prices (which means higher rates in the case of bonds).
This change could heighten demand for muni bonds from investors in higher - tax states, such as California, New York, New Jersey, and Connecticut.
Higher interest rates also increase the demand for money to invest in bonds taking money that could or was invested in the stock market.
We say «normal» because one would think that an investor should be able to demand a greater return for loaning money for 10 years as opposed to two years, in large part because of the risk of higher inflation, which can erode the value of a bond.
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