And FIBR tilts towards
higher yielding asset classes and securities.
They could then reinvest that cash into
higher yielding assets such as, say, emerging market debt.
Should the Fed be more hawkish and raise rates in the next couple of meetings, both gold and the miners will likely underperform as investors position towards
higher yielding assets.
Plunging oil prices were a major market and economic shock in 2015 and early 2016, causing broad market volatility while adding to the pain in emerging market (EM) and
high yield assets.
Finally, with 2018's realized volatility occurring at the bottom of the capital stack, we favor mortgages versus longer - dated IG or
high yield assets.
The reason comes back to yield: Although current yields are low by historical standards, they look more compelling in the context of an ever shrinking pool of
high yielding assets.
Finally, with 2018's realized volatility occurring at the bottom of the capital stack, we favor mortgages versus longer - dated IG or
high yield assets.
Having said that, we find validity in WHT differential as a significant driver of performance when investing in
high yielding assets.
If persistent zero interest rates and quantitative easing that were intended to lead investors to take more risk in pursuit of
higher yielding assets led to dampened volatility, we should expect greater financial market volatility in 2015 as the Fed pulls back from its zero rate policy.
A traditional static indexing approach leaves an investor overweight the riskiest assets at the riskiest times and underweight those low risk
higher yielding assets when their returns are likely to be highest.
Demand for Higher Return Boosts Equities Global stock prices continued to rise overnight following a sell - off in the Dollar, signaling greater demand for
higher yielding assets.
My high yielding asset had an initial yield of 6.0 % and a dividend growth rate of 2.0 % per year (annualized).
Dollar Rises as Investors Cut Exposure to
Higher Yielding Assets The U.S. Dollar is up sharply against most major currency as investors continue to cut exposure to higher risk and
higher yielding assets.
Traders are citing the stronger global economy and low interest rates in the U.S as two reasons for the renewed interest in
higher yielding assets.
Increased Demand for
Higher Yielding Assets Fuels Stock Market Rally The weaker Dollar is triggering a huge rally in U.S. equity markets at the mid-session as aggressive investors seek
higher yielding assets.
The weaker Dollar is expected to provide some support for
higher yielding assets.
Concerns that a tighter monetary policy in China will lead to a slow down in the Chinese economy is encouraging traders to lighten up on
higher yielding assets.
U.S. Dollar Losing Ground Ahead of ADP and ISM Services Report The U.S. Dollar is trading lower against most currencies with the exception of the Japanese Yen as stronger equity markets in Europe and Asia helped drove up demand for
higher yielding assets.
U.S. Equities Post Strong Gains on Renewed Interest in
Higher Yielding Assets Confidence that the Greek budget deficit problem may be improving helped to drive up demand for risky assets.
Investors Seek Safety in U.S. Dollar after Weak Housing Report The U.S. Dollar is trading higher at the mid-session as weak U.S. housing data is encouraging investors to dump
higher yielding assets and seek safety in the Greenback.This morning, stock market losses are clearly triggering the rapid return to the Dollar as a safe - haven investment.
Traders are expressing their satisfaction with the report by renewing their interest in
higher yielding assets.
A better than expected U.S. Manufacturing report helped to underpin the U.S. markets and create upside momentum.A surge in demand for
higher yielding assets is also helping to drive crude oil and gold prices higher.
As rates start rising, investor demand moves to other
higher yielding assets like corporate bonds.
Because of the country's zero - interest rate policy, traders borrowed yen on the cheap and purchased
higher yielding assets in other countries and markets, pocketing the difference.
Big Wall Street banks package subprime mortgages into securities and sell them to hedge funds and institutional investors looking for
high yielding assets.
Finding a suitable
high yield asset can be difficult.
The new offering will allow institutional investors to diversify into
a high yielding asset like bitcoin - especially if the equity markets respond negatively to increased odds of a Fed rate hike.
Not exact matches
«If U.S. rates move too quickly, they will dislocate [
high yielding]
assets more broadly and the most liquid emerging markets will not be immune to a selloff,» he added, pointing to the 2013 taper tantrum as an illustration of this idea in action.
Other than real estate, which has
higher yields and can act as a diversifier, Turnbull won't hold any sector or alternative -
asset ETFs.
Bond investors like mutual funds and pension funds hope to buy securities with comparatively
higher yields than other
asset - backed debt that could also provide diversification benefits.
Yields on the securities have climbed to their
highest levels in six years, and total returns were negative 2.6 percent for the first two months of 2018, making for the worst start of a year for the
asset class since 1981.
«
Higher U.S.
yields have contributed to the rise in the dollar,» said Chuck Tomes, senior investment analyst at Manulife
Asset Management in Boston.
«Shorter duration hedge fund
assets have grown at a rapid pace even as market liquidity has deteriorated, particularly in the
high yield and distressed debt markets.
With rates at near zero in the United States, and negative in Japan and Europe, the differential is a powerful lure for carry trades, in which investors borrow at ultra-low rates in currencies such as yen or sterling and buy
high -
yielding assets such as the kiwi.
What's more, the iShares iBoxx
High Yield Corporate Bond ETF (HYG) was No. 10 among all ETFs in August in
asset gathering, according to ETF.com.
There is also opportunity abroad: Non-U.S. stocks with the
highest dividend
yields (average price / earnings ratio of 15.8) are cheaper than domestic counterparts (23.1), according to O'Shaughnessy
Asset Management.
With stocks trading near all - time
highs and bond
yields still relatively low, some investors have turned to alternative
asset classes.
QE could be described as a tax on the private sector since it removes
high yielding safe
assets from the private sector and swaps them with low
yielding less safe
assets.
These funds offer diversification across multiple
asset classes, including domestic and international stocks across varying styles and market capitalization ranges, investment grade and
high yield fixed income, and short - term investments.
Rotation towards
assets, sectors, markets that benefit from
higher inflation and steeper
yield curve may take longer to play out but destination is clear.
Treasury
yields inched
higher Tuesday as a global rally for
assets perceived as risky suggested that fears over a trade conflict between China and the U.S. were easing following a speech by China's President Xi Jinping.
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 ra
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 ra
High Yield Bond ETF (JNK)-- have faced sizable
asset outflows as investors fret over
high valuations and rising interest ra
high valuations and rising interest rates.
The selling has extended into other
asset classes, notably commodities and
high yield, and has been accompanied by an abrupt spike in market volatility.
Our team of credit professionals deliver sales and trading capabilities across a wide range of fixed income
asset classes including
high yield, distressed and investment grade bonds, convertible bonds, public and private corporate securities, leveraged loans and emerging market debt.
It will also invest in emerging market
assets that have a compelling case for consistent and
high yielding passive income streams.
The
asset class, represented by the Markit iBoxx USD Liquid
High Yield Index, has seen spreads relative to Treasuries widen sharply, despite the fact that defaults remain well below historical levels.
Elsewhere, at the single country and
asset class fund levels,
High Yield Bond Funds recorded their ninth consecutive outflow while Inflation Protected Bond Funds took in fresh money for the 10th time in the 11 weeks, year - to - date.
We trade all fixed income
assets, with a focus on more illiquid situations, from
high yield, distressed and investment grade bonds and convertible bonds to public and private corporate securities and leveraged loans.
Appetite for riskier
assets such as stocks and
high -
yield bonds has been suppressed by a number of factors that have come up around the same time, but the headwinds may be transitory, according to the New York - based investment bank.
It'd be hard for any fixed income
asset class to match the 2016 performance of the Markit iBoxx USD Liquid
High Yield Index, which returned 15.31 % (source: Bloomberg).