Sentences with phrase «higher nominal yield»

An increase in marginal yield corresponds to an increase in marginal risk, but that risk is not born evenly by investors: the ones with bad setup end up with a vacant property, while the ones with good setup can access that higher nominal yield.

Not exact matches

Brian Sack and Robert Elsasser explain that over most of the post-1997 period, yields on TIIS have been surprisingly high relative to yields on comparable nominal Treasury securities.

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

We see higher inflation expectations, rather than rising real yields, driving rises in nominal bond yields.

Higher rates effected performance, but nominal returns were still positive because eventually investors were able to make up for the price losses through the increases in yield.

High - yield stocks generated an annualized nominal return of 12.2 %; low - yield, 10.4 %.

For roughly three decades, U.S. non-financial corporate debt as a percentage of U.S. nominal GDP and the high yield default rate moved in tandem.

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.

When savings are high, the term premium is more likely to be low, in the process keeping nominal yields down.

The findings: Traditional defensive sectors such as utilities, telecommunications, real estate and consumer staples provided minimal protection when nominal yields moved higher.

Even with the prospect of a near - term easing of inflation and perhaps even some negative CPI inflation figures, the combination of strong real yields and principal safety makes these a good harbor for investors who want to sleep nights without accepting untenably low nominal yields (and the high associated durations - which I suspect many investors currently overlook).

While the initial yield was high, your overall return has been eroded by a 25 % decline in the nominal value of your investment.

They are attempting to achieve high smooth yields well in excess of the nominal risk - free rate on a constant basis.

Think of 1979 - 82: by the time bond yields were nearing their peak levels, bond managers were making money in nominal terms with rates rising because the income from the coupons was so high, and it set up the tremendous rally in bonds that would last for ~ 30 years or so.

Usually done based on models, the hedging ratio is not 100 % but leaves some exposure open but then captures some of the extra nominal yield offered by the higher yielding currency.

High yield bonds are risky enough that when nominal yields get low enough, it is probably time to start reducing exposure.

For roughly three decades, U.S. non-financial corporate debt as a percentage of U.S. nominal GDP and the high yield default rate moved in tandem.

Here's my bias: at the first investment shop I worked in, the high yield manager told me that there is a nominal yield for high yield bonds which reflects the risk.

The higher TIPS yields are relative to the historical real return on nominal bonds, the greater the allocation to TIPS and the longer the maturity can be.

Real Yields Another consideration is if TIPS yields are high or low relative to the real return on nominal bonds of the same matYields Another consideration is if TIPS yields are high or low relative to the real return on nominal bonds of the same matyields are high or low relative to the real return on nominal bonds of the same maturity.

Current TIPS yields are below the long - term average real yield of both nominal bonds and TIPS, but the steepness of the TIPS yield curve means longer - maturity TIPS are yielding higher percentages of both the historic real return on nominal bonds of the same maturity and the historical yield on TIPS.