Sentences with phrase «higher bond returns»

You might expect that certain bond mutual fund managers would be more skilled than others and would produce higher bond returns.

That's why investors who are still many years from retirement should welcome a modest increase in interest rates: it would cause some short - term pain, but it would also mean higher bond returns over the long term.

Higher bond returns similar to those we witnessed in the bond bull market helped cushion the blow from large stock market losses.

Not exact matches

If interest rates rise and push that risk - free rate of return higher, then those dividend stocks and high - yield bonds are vulnerable.

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.

More specifically, investors have sought the potential for higher returns from riskier assets like private company stocks, as safer investments like T - bills and bonds pay out next to nothing.

Gundlach predicts that both high - yield bonds and a portfolio of mortgage - backed securities could return about 6 percent in 2013.

The gap between the 10 - year French and German government bond yields has widened to a five - day high as political uncertainty returned to France.

Since those investors are just looking for the highest returns, and not say buying bonds their financial advisor told them they needed bonds as part of their retirement planning, they are more likely to jump when rates rise.

New bond investors would probably demand a higher return to compensate for the added costs of investing in bond funds.

While credit risk might seem like a bad idea with the U.S. economy still weak and the rest of the world looking equally uncertain, high - yield bonds do offer bigger returns than government and investment - grade bonds.

The Vanguard High Yield Corporate Bond fund has underperformed Treasuries in the recent downturn, but it still has a positive return of 0.5 percent in the year - to - date through Oct. 27.

If the same person instead invested a little less each year (6 % of his income) in a portfolio weighted 80 % to higher - returning equities and 20 % to bonds, he would only have $ 469,000 at retirement.

Analysts who spoke to Reuters on Monday said some of their investor clients want Goldman management to outline a specific plan for how the bank will make up for falling bond revenue and drive returns higher.

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.

While it's better to invest than keep money under a mattress, buying risk free securities, such as guaranteed income certificates or low - yielding government bonds, could actually be riskier than purchasing higher returning products, says Ted Rechtshaffen, president and CEO of Toronto's TriDelta Financial Partners.

These mutual funds have promised higher yields and better returns than bond - only funds, and for the most part they have delivered.

«For example, a bond fund may borrow and take on leverage in order to show a higher return but has significantly higher risk than a retiree may want in an income portfolio.»

By secular reflation, we mean at least a decade in which short - and long - term interest rates stay habitually below nominal GDP growth and high grade bonds are not really bonds any more: delivering trend returns that are close to zero or even negative.

Low interest rates have given a huge incentive to shift out of low - risk assets into stocks and corporate bonds in search of higher returns.

There is no share holder buyer of last resort, and so equity buyers can demand a higher return than bond holders.

And with interest rates at all - time lows and stocks at all - time highs, there are many who expect that not only will a 60/40 portfolio deliver below average returns, but that bonds might not provide the protection they once did.

For U.S. bond market returns, we use the S&P High Grade Corporate Index from 1926 through 1968, the Citigroup High Grade Index from 1969 through 1972, the Lehman Brothers U.S. Long Credit AA Index from 1973 through 1975, the Barclays U.S. Aggregate Bond Index from 1976 through 2009, and the Spliced Barclays U.S. Aggregate Float Adjusted Bond Index thereafbond market returns, we use the S&P High Grade Corporate Index from 1926 through 1968, the Citigroup High Grade Index from 1969 through 1972, the Lehman Brothers U.S. Long Credit AA Index from 1973 through 1975, the Barclays U.S. Aggregate Bond Index from 1976 through 2009, and the Spliced Barclays U.S. Aggregate Float Adjusted Bond Index thereafBond Index from 1976 through 2009, and the Spliced Barclays U.S. Aggregate Float Adjusted Bond Index thereafBond Index thereafter.

Compare that to the holder of a high yield bond who can ignore the ravings of Mr. Market and sit tight until normality returns.

High - yield bonds delivered another year of strong performance in 2017, with the benchmark Bloomberg Barclays US Corporate High Yield 2 % Issuer Capped Index returning 7.2 % as we approached year - end.

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 ones.

But it looks like a high probability bet that the spread between the returns on stocks and bonds should be wider in the future than it has been for the past three decades or so.

While stocks are riskier than bonds or cash investments, they have much higher returns over the long run and many issue dividends on top of this.

The Department of Finance attributes the increase in public debt charges due to inflation adjustments on real return bonds and a higher stock of interest - bearing debt.

Given those durations, an investor with 15 - 20 years to invest could literally plow their entire portfolio into stocks and long - term bonds, in expectation of very high long - term returns, with the additional comfort that their financial security did not rely on the direction of the markets, thanks to the ability to reinvest generous coupon payments and dividends.

Based on BlackRock's long - term assumptions, some of the better return - to - risk ratios are in high yield bonds, EM dollar - denominated debt and bank loans.

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.

iShares S&P ® / TSX ® 60 Index Fund («XIU»), iShares S&P / TSX Capped Composite Index Fund («XIC»), iShares S&P / TSX Completion Index Fund («XMD»), iShares S&P / TSX SmallCap Index Fund («XCS»), iShares S&P / TSX Capped Energy Index Fund («XEG»), iShares S&P / TSX Capped Financials Index Fund («XFN»), iShares S&P / TSX Global Gold Index Fund («XGD»), iShares S&P / TSX Capped Information Technology Index Fund («XIT»), iShares S&P / TSX Capped REIT Index Fund («XRE»), iShares S&P / TSX Capped Materials Index Fund («XMA»), iShares Diversified Monthly Income Fund («XTR»), iShares S&P 500 Index Fund (CAD - Hedged)(«XSP»), iShares Jantzi Social Index Fund («XEN»), iShares Dow Jones Select Dividend Index Fund («XDV»), iShares Dow Jones Canada Select Growth Index Fund («XCG»), iShares Dow Jones Canada Select Value Index Fund («XCV»), iShares DEX Universe Bond Index Fund («XBB»), iShares DEX Short Term Bond Index Fund («XSB»), iShares DEX Real Return Bond Index Fund («XRB»), iShares DEX Long Term Bond Index Fund («XLB»), iShares DEX All Government Bond Index Fund («XGB»), and iShares DEX All Corporate Bond Index Fund («XCB»), iShares MSCI EAFE ® Index Fund (CAD - Hedged)(«XIN»), iShares Russell 2000 ® Index Fund (CAD - Hedged)(«XSU»), iShares Conservative Core Portfolio Builder Fund («XCR»), iShares Growth Core Portfolio Builder Fund («XGR»), iShares Global Completion Portfolio Builder Fund («XGC»), iShares Alternatives Completion Portfolio Builder Fund («XAL»), iShares MSCI Emerging Markets Index Fund («XEM») and iShares MSCI World Index Fund («XWD»), iShares MSCI Brazil Index Fund («XBZ»), iShares China Index Fund («XCH»), iShares S&P CNX Nifty India Index Fund («XID»), iShares S&P Latin America 40 Index Fund («XLA»), iShares U.S. High Yield Bond Index Fund (CAD - Hedged)(«XHY»), iShares U.S. IG Corporate Bond Index Fund (CAD - Hedged)(«XIG»), iShares DEX HYBrid Bond Index Fund («XHB»), iShares S&P / TSX North American Preferred Stock Index Fund (CAD - Hedged)(«XPF»), iShares S&P / TSX Equity Income Index Fund («XEI»), iShares S&P / TSX Capped Consumer Staples Index Fund («XST»), iShares Capped Utilities Index Fund («XUT»), iShares S&P / TSX Global Base Metals Index Fund («XBM»), iShares S&P Global Healthcare Index Fund (CAD - Hedged)(«XHC»), iShares NASDAQ 100 Index Fund (CAD - Hedged)(«XQQ») and iShares J.P. Morgan USD Emerging Markets Bond Index Fund (CAD - Hedged)(«XEB»)(collectively, the «Funds») may or may not be suitable for all investors.

Bonds can still serve a purpose in a diversified portfolio, but it's unlikely they will enhance your returns until we see much higher yields.

They're not quite as popular today.Junk bonds carry high rates of return but they're as risky or riskier than stocks are.

That's because average stock market returns have been higher than those on bonds and savings accounts over time.

The implications of moderately higher rates: Expect low or negative returns for government bonds globally in the medium term.

These investors may have to accept lower long - term returns, as many bonds — especially high - quality issues — generally don't offer returns as high as stocks over the long term.

As cash has no negative returns, the volatility might not be any higher than it would be in a portfolio that includes bonds.

In all likelihood, rates will eventually go higher, and US bond funds could yield negative returns.

For example, if you're comfortable taking on more risk in exchange for potentially higher returns, your portfolio might be weighted with more stocks than bonds.

For instance, a portfolio with an allocation of 49 % domestic stocks, 21 % international stocks, 25 % bonds, and 5 % short - term investments would have generated average annual returns of almost 9 % over the same period, albeit with a narrower range of extremes on the high and low end.

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

Moreover, a sustained move toward higher inflation is a risk to most investors and investment strategies, given that rising inflation has historically been a drag on equity and bond returns, making diversification beyond mainstream asset classes more critical.

If your stocks offer a 10 percent return over a year while your bonds return 4 percent, you will end up with a higher percentage of stocks and lower percentage of bonds than you started.

Unfortunately, the only cure for low returns in bonds is higher interest rates.

I thought junk bonds were «high risk — high return» whereas I'd have thought Chicago was more «high risk — no return.

When considering an investment in corporate bonds, remember that higher potential returns are typically associated with greater risk.

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

Considering the high correlation between green bonds and core fixed income, investors have the possibility to reallocate part of their core fixed income allocation to green bonds in order to increase diversification and «green» their portfolio with a minimal impact on the risk / return profile of their portfolio.