Sentences with phrase «higher than government bonds»

Corporate yields are an average of two percentage points higher than government bonds because there's a higher risk of default.

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

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

Wong wants a return potential of about 3 % to 5 % higher than the government bond rate, which puts him into the 5 % to 7 % annual return range.

Right now, yields for REIT's are about 3 % higher than government bond yields, meaning REIT investors are being well compensated for taking on additional risk.

Not exact matches

Fill the bulk of your portfolio with a combination of high - rated bonds (weighted toward corporate, rather than government, debt) and high - quality, dividend - paying equities, and you likely won't take a hit.

Overseas, UK government bond yields spiked after higher - than - expected inflation data.

Poland's 10 - year government bond yield rose 7 basis points to 3.14 percent, its highest level in four weeks, rising more than U.S. and German yields which it often tracks.

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.

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.

European government bond and U.S. 10 - year Treasury yields are trading at their highest levels in more than two months and the U.S. 30 - year Treasury bond yield reached a high for the year on Tuesday.

The yields and risks are generally higher than those offered by government and most municipal bonds, and the income is subject to state and federal taxes.

Typically, the market for high yield bonds is less liquid than the market for investment grade or government bonds.

Inflation - protected securities would likely outperform nominal government bonds amid higher - than - expected U.S. inflation, but stocks might not easily stomach a sharp upturn in interest rates or Federal Reserve (Fed) hawkishness.

It's also interesting to examine the changing significance and dynamics of the European bond market in general, which has almost doubled in size since 2005 to more than $ 10 trillion today, including government, investment - grade corporate debt and high yield.

Instead of keeping 20 % in cash, thereby reducing expected risk to 12 %, the investor could move into 10y government bonds with a higher return than cash and even a little bit of negative correlation with equities.

Income potential is generally higher than that paid by U.S. government bonds of similar duration and varies depending on the fund's duration and the quality of its bonds.

But in the last few episodes of sharp stock market drops, bonds went up (US government bonds are a safe haven asset and appreciate in crisis periods) so the only thing better than 3 months worth of expenses in a money market fund is having 3 + x months worth of expenses in the bond portfolio due to higher bond yields and negative correlation between bonds and stocks.

«Gold ranks higher than all European sovereign debt markets, and trails only US Treasuries and Japanese government bonds.

This second trend borne from ultra-loose monetary policy has forced many investors to seek out higher - yielding alternatives including dividend stocks, which, on average, yield more than 10 - year government bonds in most major developed markets, including Canada (see chart below).

However at 10.75 %, the yield on the bond is still much higher than government's initial target of 8.5 % and also higher than the previous one which had coupon rates of 8 % and 8.5 % percent for its $ 2 billion bond issued.

It shows that, with each successive transaction, the financial burden has resulted in higher debt - per - student costs as UNO has nearly no other source of revenue other than public transfers via direct subsidies, publicly issued bonds and government contracts.

Trade: Sell U.S. government bonds when credit appetite is high, as signaled by the CAI being more than one standard deviation above its 50 - day moving average, and buy when it is low, or more than one standard deviation below its 50 - day moving average.

If our model predicts a higher loss potential than you have specified for your portfolio, we will execute a reallocation from a riskier asset class (such as stocks) into a lower risk asset class (such as government bonds or money market funds).

Mortgage rates are always higher than the rates on GICs and government bonds of the same term because working that spread is part of how banks make money.

What's more, GICs pay higher yields than government bonds: today you can build a five - year ladder with an average yield over 2 %, with no credit risk and no chance of a capital loss.

Inflation - protected securities would likely outperform nominal government bonds amid higher - than - expected U.S. inflation, but stocks might not easily stomach a sharp upturn in interest rates or Federal Reserve (Fed) hawkishness.

This meant that municipal bonds, which typically yield less than Treasuries before tax, began to offer yields higher or comparable to federal government debt on a pre-tax basis.

Income investors will appreciate that many such stocks generate higher yields than 10 - year government bonds, the reverse of historical norms.

Since high - yield bonds have far more credit risk than government bonds of the same maturity, investors should naturally expect higher returns.

A US government bond, for example, will have a much higher rating than a Syrian government bond due to the relative stability of the former over the latter.

Corporate bonds are popular income investing assets because they typically pay higher yields than government securities, although they also carry correspondingly higher risk.

This is quite a different result than earlier this year, when European bond market bonds sold off in fear that a Fed rate hike would lead to a shift away from European government bond markets to the higher yields and high quality of the US government bond market.

Bond funds or bonds are conservative, low risk, and highly liquid investments that are ideal for investors who wish to enjoy government - backed funds and higher returns than savings and money market funds.

We have high yield dividend equities — this is unique to Rebalance IRA — that we use a proxy for a bond fund because interest rates are artificially manipulated by the government and kept artificially lower than they normally would have been if the market had set those rates by its own market forces.

These are bonds paying a high rate of interest because the issuers are of lesser credit quality than government and investment - grade corporate bonds.

Income potential is generally higher than that paid by U.S. government bonds of similar duration and varies depending on the fund's duration and the quality of its bonds.

Another use of life insurance to reverse out an annuity, is when all you need for living expenses is a guaranteed after - tax - return that is slightly higher than current government bond yields, and you want to leave an estate after death.

That makes them no riskier than Government of Canada bonds of the same maturity, even though they usually have higher yields.

However, GICs have higher yields than government bonds of the same maturity, with no additional risk.

Over the past century, stocks have grown at a roughly +10 % annual clip — significantly higher than other asset classes (for example, government bonds have earned ~ 5.5 % annually, real estate ~ 3.8 %, cash ~ 3.4 %).

In 2000, I wrote a short paper entitled «Death of the Risk Premium,» with Ron Ryan, which was received with widespread derision, but ultimately proved correct: plain old 10 - year government bonds have produced higher returns than stocks since then, by a cumulative margin of over 30 %, despite the durable bull market since 2002.

In addition, agency bonds issued by Federal Government agencies are less liquid than Treasury bonds and therefore this type of agency bond may provide a slightly higher rate of interest than Treasury bonds.

Improving High - Yield Bond Portfolio Returns Investors in corporate credit, especially high - yield bonds, tend to face shorter cycles of booms and busts than do government bond investors, and therefore have more frequent opportunities, as a result of year - over-year price volatility, to advantageously position their portfolHigh - Yield Bond Portfolio Returns Investors in corporate credit, especially high - yield bonds, tend to face shorter cycles of booms and busts than do government bond investors, and therefore have more frequent opportunities, as a result of year - over-year price volatility, to advantageously position their portfolBond Portfolio Returns Investors in corporate credit, especially high - yield bonds, tend to face shorter cycles of booms and busts than do government bond investors, and therefore have more frequent opportunities, as a result of year - over-year price volatility, to advantageously position their portfolhigh - yield bonds, tend to face shorter cycles of booms and busts than do government bond investors, and therefore have more frequent opportunities, as a result of year - over-year price volatility, to advantageously position their portfolbond investors, and therefore have more frequent opportunities, as a result of year - over-year price volatility, to advantageously position their portfolios.

Corporate bonds pay a higher interest rates (or «coupon») so these bonds are repaid quicker than government bonds, which pay a lower interest rate.

Corporate bonds tend to carry a higher level of risk than government bonds, but they generally are associated with higher potential yields.

Amusingly enough, Johnson & Johnson is one of the few US companies that has higher rated bonds (by the ratings agencies), than the US government does.

Additionally, in this low - interest - rate environment, the dividend yield offered by dividend - paying companies is substantially higher than rates available to investors in most fixed - income investments such as government bonds.

Riskier investments such as shares and junk bonds are normally expected to deliver higher returns than safer ones like government bonds.

The present environment is characterized by unusually overvalued, overbought, overbullish conditions, with rising 10 - year Treasury bond yields, heavy insider selling, valuations on «forward earnings» appearing reasonable only because profit margins are more than 70 % above historical norms (fully explained by the negative sum of government and personal savings as a share of GDP), with the S&P 500 at a 4 - year market high, in a mature market advance, with lagging employment indicators still positive but more than half of all OECD countries already in GDP contraction, Europe in recession, Britain on the cusp, and the EU imposing massive losses on depositors in order to protect lenders in an unstable banking system where Cyprus is the iceberg's tip.