Sentences with phrase «higher yield premiums»

Bonds with higher counterparty risk offer higher yield premiums.

Not exact matches

«There's a lot of uncertainty and the market is pricing in some risk premium into the Treasury market in the form of higher yields,» he said.

«Perversely, we've spent the last 20 years paying a premium for [the stocks of companies with] high yield debt,» she said.

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.

THE QUOTE: «The U.S. dollar has put on a compelling show overnight as the stars align on the back of higher U.S. yields and a considerable reduction in the U.S. dollar's geopolitical risk premium as an outwardly calmer mood surrounding trade and geopolitical risk takes hold,» Stephen Innes of OANDA said in a commentary.

Even so, as long as the yield on the preferred is higher than the Treasury's funding costs, the favorable terms will represent an insufficient risk premium but not a loss to the public.

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.

Everyone on any membership plan can add the High Yield Dividend Newsletter to their membership (it's purely an incremental add - on), and individual premium and advisor - level members can add the Nelson Exclusive to their plans.

BIS's latest quarterly review also argued that higher short - term bond yields have consistently failed to lift term premium nor dampen risk - parity flows in recent years:

Despite their high real yields, the premiums over face value would erode in the event of deflation (though the securities do not mature at less than par in any event).

While WestJet prepares to launch Swoop on June 20 in response to other ULCC competitors such as Flair Airlines Ltd., Air Canada has maintained its focus on targeting the premium passenger, driving higher yields for the company.

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

But premium bonds could actually offer a good deal because they may come with higher coupon rates and greater yield in the long run.

It is mainly a history of low yields being pressured higher - of thin risk premiums being pressured to widen - of rich valuations being pressured lower.

Using total credit premiums, trading volumes and characteristics for a broad sample of U.S. investment grade and high yield corporate bonds during January 1994 through December 2015, he finds that: Keep Reading

Although longer - term bonds offer higher yields, they don't necessarily offer enough of a return premium to justify the higher risk when compared to short - term bonds.

A good example of this is that our bond yields are now virtually the same as US bond yields, whereas five years or 10 years ago it was not uncommon for the gap to be as high as five percentage points; some of this was a risk premium and some of it reflected our higher inflation.

But, he added, in order to close the import - export gap, farmers need help making ends meet during the three transition years in which they must farm organically and often experience lower yields than under conventional methods, but do not yet qualify for the higher price premium of organic to compensate for their losses.

Investors will realize a slightly higher yield if the called bonds are paid off at a premium.

AFLAC will be able to invest the significant premium flows it generates into higher yielding securities, which will boost income.

Morgane Delledonne reviews the current market conditions and the ETF strategies that can be employed to improve portfolio outcomes, including; managing duration in a rising interest rate environment, achieving superior yields through quality screening and harvesting high option premiums, whilst dampening portfolio volatility.

Eliminating the «yield spread premium» paid by mortgage lenders to mortgage brokers: If adopted, this would prevent mortgage lenders from paying premiums to mortgage brokers who originate high cost mortgage loans.

The lower price suggests that the complexity introduced by loan terms that involve a combination of cash and interest rate, with variations in yield - spread premiums, points, and even seller contributions makes it more difficult for consumers to figure out their total costs and contributes to higher prices and higher fees for lenders and brokers.

Despite a typical hiking cycle causing a flattening of the yield curve, we are potentially embarking on a path where yield curves may steepen significantly, as the Fed may be concluding that financial conditions (i.e. stock prices) can only be impacted by engineering a steeper yield curve and higher term premium.

So, the dividend yield is about the same but SAP has a much higher return on equity and net profit margin than L. SAP has also typically trades at a premium to Loblaws.

Losing covered call strategies include chasing high yields by buying stocks you don't want to own if not called, as well as buying stocks that don't pay enough in call premium to compensate you for the risk of owning them.

The company produces salt (primarily used by cities for deicing roads but has many consumer and industrial uses as well), specialty potash (a premium fertilizer that improves the quality, yield, and shelf life of high - value fruit, vegetable, and tree nut crops), micronutrients (essential minerals that maximize plant yields), and magnesium chloride (used in numerous ways including roadway deicing, dust control, and as plant nutrients for wheat crops).

Of course, some of the higher yield for commercial mortgages is linked to this illiquidity premium, but by giving up some liquidity, investors may be rewarded with significantly higher yields.

Because bond prices increase when yields fall, these bonds are now trading at a premium (that is, their price is higher than their face value).

The security would sell at a premium due to the high return, but not as high as that of a comparably yielding Treasury bond, due to concerns about prepayment.

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.

The time that it takes for a convertible security to recoup its premium through its higher yield, compared with the dividend that is paid on the stock.

Jason Zweig mentions three funds which recently traded at a high premium and whose high yields may be unsustainable.

Seemingly, this behavior might be construed as not leading to outperformance over time, because every spike in option - adjusted spread (OAS), a standard measure of the yield premium required by high - yield bondholders, would tend to eventually retract, and gains could easily be wiped out by symmetrical losses on the other side.

And now those higher - yielding stocks trade at about a 20 % premium to stocks with high dividend growth.

Likewise if interest rates were to drop to 2.00 % the price of your older bond might increase in value to reflect the premium higher yielding bonds would have.

A Review of the Evidence, in which Fernando Duarte and Carlo Rosa argue that stocks are cheap because the «Fed model» — the equity risk premium measured as the difference between the forward operating earnings yield on the S&P 500 and the 10 - year Treasury bond yield — is at a historic high.

A Relationship Rewards Money Market offers all of the benefits of our Money Market accounts, but a higher minimum balance and premium interest rates can generate even higher yields.

The Global High Quality Dividend Yield (GHQDY) is a diversified, risk - controlled strategy designed to target a yield premium of 75 to 100 basis points relative to yields on diversified global equity indYield (GHQDY) is a diversified, risk - controlled strategy designed to target a yield premium of 75 to 100 basis points relative to yields on diversified global equity indyield premium of 75 to 100 basis points relative to yields on diversified global equity indices.

I know that TLT & DIA don't pay the highest yield but I think you can make up for that with option premium.

Even the revered bond investor Howard Marks, who appears correctly concerned about the depressed risk premiums in high - yield debt, seems to give a pass to stocks.

As the annual interest of the GOC bond is higher than the yield - to - maturity (3.22 % versus 1.50 %), we know that this bond is trading at a premium to par.

That said, the risk premium factor shows that the largest gains tend to come in the southwest quadrant: low equity valuations and high Baa bond yields, which is a perfect set - up for mean reversion.

Scrupulous: Set aside money or high quality assets in reserve, and treat the premiums as part of the the return on a high - yield money market fund, albeit with the possibility of a severe loss.

Many of these high yielding «dogs» offer good call premium.

A Business Relationship Rewards Money Market offers all of the benefits of a traditional money market account, but a higher minimum balance and tiered premium interest rates mean higher yields for your company.

The average junk bond risk premium is 4.55 percentage points over comparable Treasury yields, and this has helped buffer high yields somewhat from rising Treasury rates.

I like the premium market valuation, but I was also content to continue holding my AGL shares for the high - yield they were providing.

Investors who want the higher yield may be willing to pay a premium to get it.

In late October, the «spread» in interest rates between high - yield bonds and Treasury bonds neared the lowest level in a decade, meaning that investors were getting less of a premium for assuming higher risk.2 A November survey found that 60 % of high - yield investors believed the bonds were overvalued.3