Sentences with phrase «high yield bond markets in»

The junk or high yield bond markets in the U.S. have seen diverse returns so far in 2015.

Not exact matches

LONDON, April 23 - Hamstrung by a renewed slump in volatility and lack of clear market direction, FX and bond speculators are making historically big bets on a lower dollar and higher yields.

Also, as bond rates rise, some of the money that migrated over from the bond market in search of higher yields will return to the safety of fixed income.

So far, though, no one is reporting any unusual outflows in the bond market, but Hamilton - Keen cautions investors against chasing high - yield products.

In the short - term, however, this increased leverage may actually be bullish for junk bonds, corporate bonds, emerging market debt and mortgage - backed securities as it brings higher prices and lower yields, he said.

The yield on the U.S. 10 - year Treasury jumped to its highest level since 2014 on Friday morning, underlining a wider move in bond markets caused by central banks moving away from financial crisis policies.

The sell off in the market for high yield debt, or junk bonds, is now hitting a type of structured bond that is similar to the the type that blew up in the financial crisis.

On Wednesday, bond yields in both the U.S. and Germany reached highs on the year, which likely helped trigger a selloff in equity markets Thursday.

By mid-December it was clear that a late - quarter rout in the high - yield bond market was likely to hit revenues.

Exchange - traded funds that track high - yield bond indexes have been the beneficiaries of a cash surge in recent weeks as market participants figure the central bank probably won't raise rates in 2015, and it could be well into 2016 before anything happens.

Bond yields snapped higher, adding to their already steep gains, and federal funds derivatives showed market expectations are moving closer to pricing in a full three interest rate hikes by December.

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

Yields on U.S. government bonds are already some of the highest in the sovereign debt markets and are attractive to non-U.S. buyers on an absolute and relative basis.

Invest in high - yield bonds and dividend - yielding stocks, says the BofA - Merrill team, which is overweight high - grade and high - yield corporate bonds, including financial sector names that are especially sensitive to the housing market.

This leaves us roughly in the same position that we started the year, slightly overweight to spread product, i.e., investment - grade and high - yield corporate bonds and emerging markets (more recently, we also went back to a slight overweight on commercial mortgage - backed securities).

In a zero - interest rate world (Figure 7), these provide yields that are much higher than those found in more conventional investments like U.S. Treasury bonds or money market accountIn a zero - interest rate world (Figure 7), these provide yields that are much higher than those found in more conventional investments like U.S. Treasury bonds or money market accountin more conventional investments like U.S. Treasury bonds or money market accounts.

In the credit markets, both investment - grade and high - yield corporate bonds had negative returns for the first time in eight quarters, with down - in - quality subsectors in each unconventionally outperforming higher quality oneIn the credit markets, both investment - grade and high - yield corporate bonds had negative returns for the first time in eight quarters, with down - in - quality subsectors in each unconventionally outperforming higher quality onein eight quarters, with down - in - quality subsectors in each unconventionally outperforming higher quality onein - quality subsectors in each unconventionally outperforming higher quality onein each unconventionally outperforming higher quality ones.

Like most sectors of the fixed - income market, municipal bonds struggled in the first quarter as yields climbed higher.

Recent increases in inflation expectations have triggered repricing in the fixed - income markets, but we expect inflation and bond yields to trend only modestly higher.

The era of cheap or zero - interest money that led to a wall of liquidity chasing high yields and assets — equities, bonds, currencies, and commodities — in emerging markets is drawing to a close.

With market volatility hitting multi-decade lows, junk bond yields also at record lows, the median price / revenue ratio of S&P 500 constituents at a record high well - beyond 2000 levels, and the most strenuously overvalued, overbought, overbullish syndromes we define, I'm increasingly concerned about the potential for an abrupt «air pocket» in the prices of risky assets that could attend even a modest upward shift in risk premiums.

But cash isn't such a bad thing in a rising rate environment as the yield pick up rather quickly on money market accounts or you can roll some of that over into higher yielding short - term bonds.

I still think there will be a flight to safety in sovereign bonds when stocks have a bear market but other areas such as high yield and corporate debt could run into some problems.

And I think that given higher volatility in the markets, going into higher yielding bonds or stocks, the risker ones, is unadvisable.

As bond yields surged on Friday, high - yielding segments of the equity market such as utilities and REITs came under the most pressure, which shows that it won't take much of a rise in yields to derail their rally.

However, these higher yielding bonds are often the most risky, resulting in a lower risk - adjusted return than the broad market.

We believe the key to investing in high yield bonds is investing in solid companies run by strong management teams that can navigate variable market conditions.

When I was a junk bond trader in the 1990's, high yield money would be pulled from the market abruptly and quickly, usually about a week before the stock market would undergo a big sell - off.

«Every time the bond market moves dramatically and unexpectedly higher in yield, the consensus forecast plays catch - up,» says Matthew Hornbach, Global Head of Interest Rate Strategy for Morgan Stanley Research.

Emerging companies While many high yield bonds are issued by former investment grade companies in decline, the high yield market also provides financing opportunities for emerging companies seeking working capital for expansion or to fund acquisitions.

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

The average investment - grade (high - yield) bond trades on less than 32 % (36 %) of days over the prior six months — liquidity in corporate bonds was considerably lower than in traditional listed equity markets.

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.

We see few opportunities in the U.S. high yield bond market.

In the bond market, Treasuries were higher, but little - changed, with the 2 - year yield right at 2.5 % and the 10 - year sitting at 2.96 %.

High Yield Bond Funds posted outflows for the 13th time in the past 15 weeks, with the latest redemptions the biggest since early March, while Emerging Markets Bond Funds recorded their largest outflow since the second week of February.

He also believes higher - yielding emerging - market bonds are attractive to institutional investors, given very low bond yields in developed markets.

Market participants are looking forward to getting their first major reading on earnings from the biggest technology - sector players in the coming days, but for now, investor sentiment has been able to overcome what would ordinarily be a troubling rise in long - term bond yields that could signal a steeper move higher for interest rates in the near future.

The market's continuing refusal to countenance the long - term reality described above has proven to be a recurring source of profits for those who are willing to buck the crowd and embrace the trend in falling long - term bond yields of the highest quality borrowers.

Note: HYG the $ 20bln high yield ETF yields 5.13 % in comparison, hence you might need to buy an out of favor sector like bricks and mortar retail, otherwise non-rated is likely where you will find > 7 % in the US domestic bond market.

As I emphasized last week, «While we're already observing cracks in market internals in the form of breakdowns in small cap stocks, high yield bond prices, market breadth, and other areas, it's not clear yet whether the risk preferences of investors have shifted durably.

Higher bond yields have had a dampening influence on share markets around the world in recent months.

He also noted that it is a very poor time to buy corporate bonds (high yield bond index yield 4.93 %) and Gundlach sees a negative return for the S&P in 2018 as the rates rout eventually gives the equity market the yips.

A factor pushing yields higher in Japan has been the large supply of bonds coming onto the market to fund the budget deficit.

Read MoreJeremy Siegel: Here's what will send yields higher «It would appear that the reversal in the bond market was above internal technicals.

It also can be used to compare the whole market against bond yields... In most cases the earnings yield of equities are much higher then in risk free treasury bonds Earnings yield is basically the amount of earnings you buy for every dollars worth of.In most cases the earnings yield of equities are much higher then in risk free treasury bonds Earnings yield is basically the amount of earnings you buy for every dollars worth of.in risk free treasury bonds Earnings yield is basically the amount of earnings you buy for every dollars worth of...

High yield bonds (bonds rated below investment grade) may have speculative characteristics and present significant risks beyond those of other securities, including greater credit risk, price volatility, and limited liquidity in the secondary market.

As Japan's JGB market has shown for a decade, you don't need high yields to see impressive gains in bonds.

This is a market - based estimate of the amount of fear in the bond market Bass - rated bonds are the lowest quality bonds that are considered investment - grade, rather than high - yield.

Brace for some ups and downs in markets, but consider positioning your portfolio to pursue income through preferred stocks, total shareholder payout and high yield bond - oriented ETFs.