Sentences with phrase «high yield bonds over»

The way to make money in high yield bonds over the long term is to try to avoid as many of the eventual defaults as possible.

Not exact matches

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.

Their declining currencies against the dollar (8 - 9 percent over the past 12 months), falling stock market values since the beginning of the year and high (India) and rising (Brazil) bond yields are reflecting their funding difficulties.

The yield on the BofA Merrill Lynch High Yield Bond index rose from just over 6 percent at the end of May to 7.9 percent as of Novyield on the BofA Merrill Lynch High Yield Bond index rose from just over 6 percent at the end of May to 7.9 percent as of NovYield Bond index rose from just over 6 percent at the end of May to 7.9 percent as of Nov. 17.

However, rates have retreated from over 8 percent in the last several weeks, and the credit risk of high - yield bonds can offer some diversification from the interest - rate risk of a portfolio of Treasury bonds.

In the meantime, bond yields have drifted higher and jumped shortly after 2 p.m. ET, finally pushing the 10 - year over 2.6 percent for the first time since mid-December.

Concern remained over higher bond yields after the yield on the U.S. 10 - year Treasury breached 3 percent level on Tuesday, making equities relatively less attractive.

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.

More interesting is the return on the BofA Merrill Lynch U.S. High Yield Energy Bond index, which has a whopping 18.26 % return YTD, but over the past year still has a negative 15.65 % return.

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.

Real bond returns have been high over the past 30 years or so because nominal starting yields were high and inflation has fallen.

Finally, modestly higher bond yields support our view that the rotation into value and momentum shares away from low - volatility equities likely isn't over.

The high yield bond indices are rolling over quickly.

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.

Also, the yield on the 10 - year Treasury note was over 6 % 15 years ago versus roughly 2 % today, making the risk premium of stocks versus bonds much higher today than it was then.

At this point, it's human nature to say — as I've often heard from clients over the last 39 years, whenever short rates rise above long rates — why buy a 20 - year bond when I get a higher yield on a 2 - year piece of paper?

-LSB-...] The Most Interesting Asset Class Over the Next Decade «Vanguard highlighted high - yield bonds to show how they typically perform worse than other types of bonds during a stock market drop.»

After providing double - digit returns for many years, REITs are now well off the previous highs and trade at an estimated 15 % discount to net asset value (Source: TD Securities) and yielding an average of 7 %, a spread of 2.75 % over 10 - year bonds.

For borrowers, leveraged loans offer two significant advantages over high - yield bonds: They are cheaper, by about 100 basis points on average at the moment.

Over the last four weeks, about $ 11.4 billion have come out of high - yield corporate bond funds that report weekly.

Bond yields will continue to drift higher over the course of 2018, we believe, as rate normalization continues.

Forecasting higher bond yields has been a practice fraught with error over the past...

As these have a duration of appropriate 2.5 years, won't they roll over into higher yielding gilts / bonds?

Historically, the REITs have yielded as low as 0.73 % over bonds and as high as 10 %, suggesting that current yields are at the low end of the range.

The iShares High Yield Corporate Bond ETF has bounced from the low 60s five years ago to 94 today, a gain of over 30 percent.

Wilson recommends investors emphasize international over domestic equities and upgrade their bond portfolios, avoiding high yield.

The amount of extra yield over Treasuries provided by high yield bonds recently was 3.22 %, which is the lowest it has been in 10 years and makes some investors cautious.

If investors think the economy will be bullish over the next decade, they will require a higher yield to keep their money tied up in bonds.

Over time, MFS has been a leading innovator in the asset management industry, including creating one of the first in - house research departments in the mutual fund industry in 1932, launching the first high - yield municipal bond fund and the first global balanced fund, and more recently creating «outcome - oriented» products, such as its line of target - risk, target - date, and other asset allocation strategies.

Higher risk (higher yield) bonds tend to be closely correlated with equities which means that such bonds do not really dampen volatility or smooth out returns over time when combined with equities in a portHigher risk (higher yield) bonds tend to be closely correlated with equities which means that such bonds do not really dampen volatility or smooth out returns over time when combined with equities in a porthigher yield) bonds tend to be closely correlated with equities which means that such bonds do not really dampen volatility or smooth out returns over time when combined with equities in a portfolio.

The question for any investor given today's high stock multiples AND low bond yields globally is how much this matters not only over an intermediate time frame, but over a period potentially

Fixed lending rates on housing and business loans have also risen over recent months in response to higher bond yields, although they too remain below the average of the past decade.

CORPORATE FINANCING NEWS High - yield corporate bond issuance and trading have slowed considerably in the face of uncertainty about Federal Reserve monetary policy, at a time when chairman Ben Bernanke is about to hand over the reins to Janet Yellen,...

But it's essential to contain ones exuberance as regional risk can easily entangle in higher US yields, but so far the push in treasury yields has not been intense enough to cause a substantial adverse shift in risk sentiment, but caution prevails as the move higher in US Bond yields could be far from over.

That's in large part because dividend yields have been considerably higher than government bonds in most developed markets including Canada over this time.

Are behaviors of government, corporate investment grade and corporate high - yield bonds over this interval similar?

To start, interest rates are likely to move higher at a slow and moderate pace that could keep bond yields well below historical averages over the next five years, according to the BlackRock Investment Institute (BII).

Our expectation of higher yields underpins our overall preference for equities over bonds.

Before founding Third Point, Daniel worked in the securities industry for over a decade, gaining dedicated experience in equities, distressed debt, high - yield bond sales, risk arbitrage and private investments.

Although recently rising prices for stocks, high - yield bonds, commodities and other riskier assets would suggest otherwise, investors remain skittish over the still unresolved and quite concerning risks facing financial markets, such as the U.S. presidential election, the potentially prolonged post-Brexit renegotiations, Italian bank solvency and a slowing China.

To start, interest rates are likely to move higher at a slow and moderate pace that could keep bond yields well below historical averages over the next five years, according to the BlackRock Investment Institute (BII).

The combination of a surge in bond yields and a sudden preference for high - risk / high - return speculation over slow - and - steady investment caused most income - focused sectors to underperform in January.

Investors have rushed over to high yield bond exchange - traded funds (ETFs) in a search of yield.

That's in large part because dividend yields have been considerably higher than government bonds in most developed markets including Canada over this time.

The par amount outstanding of investment - grade corporate debt, as measured by the S&P U.S. Investment Grade Corporate Bond Index, has increased over USD 4 trillion since September 2007, while the amount of speculative - grade outstanding, as measured by the S&P U.S. High Yield Corporate Bond Index, has increased by USD 800 billion.

Posted fixed mortgage rates have always been above government bond yields so paying off your house will offer a higher return over the long - term.

Over the same tightening cycle that ended in 2006, the impact on the 10 - Year U.S. Treasury Bond yield was 60 bps higher, driving the 1 - Year / 10 - Year slope to flatten by 265 bps (see Exhibit 1).

I learned from a dear friend of mine who manages high yield at Dwight Asset Management (one of the largest fixed income management shops that you never heard of), that with high yield bonds, spreads over Treasuries aren't the most relevant measure for riskiness of the bonds.

Even if a bond fund manager has discretion with their maturities, I might opt for GICs over a lot of bond funds these days because reasonably conservative, high - quality bonds might only be paying 3 % yields right now.