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 1
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 1
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 1
Bond 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.