Sentences with phrase «in corporate bond spreads»

The healthy state of corporate balance sheets overall is also apparent in corporate bond spreads, which remain at relatively low levels.

Not exact matches

Third, in my judgement the credit spread between government and corporate bonds is very low.

In this regard, our surveillance has been closely monitoring for any signs of liquidity strains associated with the recent increases in spreads for high - yield corporate bonds, as well as for idiosyncratic events affecting particular funds in this segment, such as the events surrounding the abrupt closing of Third Avenue Management's Focused Credit Fund last DecembeIn this regard, our surveillance has been closely monitoring for any signs of liquidity strains associated with the recent increases in spreads for high - yield corporate bonds, as well as for idiosyncratic events affecting particular funds in this segment, such as the events surrounding the abrupt closing of Third Avenue Management's Focused Credit Fund last Decembein spreads for high - yield corporate bonds, as well as for idiosyncratic events affecting particular funds in this segment, such as the events surrounding the abrupt closing of Third Avenue Management's Focused Credit Fund last Decembein this segment, such as the events surrounding the abrupt closing of Third Avenue Management's Focused Credit Fund last December.

Further, a widening of U.S. corporate bond spreads in the last couple of months has been an impending warning for equity markets.

So unlike in the corporate - bond model, dealers don't deal with compressed position limits by widening spreads.

This leaves us roughly in the same position that we started the year, slightly overweight to spread product, i.e., investment - grade and high - yield corporate bonds and emerging markets (more recently, we also went back to a slight overweight on commercial mortgage - backed securities).

«Liquidity,» in fact, is THE watchword now in bond trading — ironic, considering that the U.S. central bank's primary intention has been to boost the flow of cash through financial markets, drive a push toward riskier assets like stocks and corporate credit, and thus generate a wealth effect that would spread through the economy.

By contrast, in Australia there has been no noticeable widening of risk spreads in the corporate bond market over the past year, and credit has been easily available from intermediaries, with no reports of significant changes in banks» lending attitudes.

1: Widening credit spreads: An increase over the past 6 months in either the spread between commercial paper and 3 - month Treasury yields, or between the Dow Corporate Bond Index yield and 10 - year Treasury yields.

Floating - rate * The coupon on a floating - rate corporate bond changes in relationship to a predetermined benchmark, such as the spread above the yield on a six - month Treasury or the price of a commodity.

Meanwhile, bid - ask spreads in major corporate bond markets have narrowed sharply in recent years, but remain somewhat wider than the levels observed immediately before the global financial crisis (Graph 2, right - hand panel).

This is particularly true in the corporate bond market where credit spreads (the gap between treasury and corporate borrowing costs) have remained close to all - time lows.

The resulting increase in corporate bond issuance has pushed up swap spreads, with the spread on US 10 - year (bank / government) swaps, for example, recently at its highest level for several years (Graph 7).

While the low level of credit spreads in Australia (and in other major bond markets) largely reflects favourable trading conditions for corporates, there is evidence that the search for yield has been a contributing factor.

These concerns might recently have been exacerbated by changes in the pattern of corporate financing: in countries in which the swap spread has increased the most — the US and UK — growth in private sector bond issuance has been relatively large, while net equity issuance has been low (or even negative as in the United States).

Consistent with this, spreads between corporate bond yields and swap rates have moved much more in line with CDS than have spreads between corporate bonds and CGS.

The BAA spread refers to the yield on corporate bonds above the rate on comparable maturity Treasury debt, and is a market - based estimate of the amount of fear in the bond market.

Abstracting from changes in the composition of corporate bond indices, spreads between yields on government and corporate bonds have shown a small net decline over the past three months (Graph 48).

Rather, the increase in spreads appears to reflect both tightness in the Commonwealth Government bond market (where supply remains limited and demand by foreign investors appears to have increased) and upward pressure on swap rates (one benchmark against which corporate bonds are priced) as companies have sought to lock in fixed - rate borrowings due to expected increases in interest rates.

This is in contrast to US and European markets, where corporate bond spreads to swaps have risen over the period.

To investigate, we define the credit spread as the difference in yields between and Moody's seasoned Baa corporate bonds and 10 - year Treasury notes (T - note).

The credit spread is the difference in yields between the 10 - year Treasury note and Moody's AAA seasoned corporate bonds.

Phil: I don't follow the corporate bond market but my understanding is that the spreads have significantly widened in corporate bonds due to the repricing of risk.

For spread products such as corporate bonds, their total return is also sensitive to changes in credit spread.

This leads the corporate bond market default in tandem with rising credit default swaps spreads.

The proximate cause of this sell - off is a reappraisal of risk in the credit markets, starting first at subprime but now having spread to the riskier parts of corporate credit, namely high - yield bonds and loans to finance buy - outs.

So in a boom, credit spreads [the difference between the yields of corporate bonds and Treasury bonds] tighten quickly, tighten slowly, and then stop tightening, even though things seem to be going great.

This flight to quality movement also impacted credit spreads, which widened for both investment grade and high yield corporate bonds, negatively impacting the returns of bonds in those sectors.

We see an opportunity in MBS to add income while decreasing credit risk against a backdrop of ever - tighter corporate bond spreads.

Seeks opportunities to benefit from improving credit quality and spread compression in a diversified portfolio of US Dollar sovereign and quasi-sovereign bonds, supplemented with carefully chosen corporate issues.

I remember back in 2002 as a corporate bond manager / trader — bonds were trading in «onesies» and «twosies,» though bid - ask yield spreads hadn't widened much.

The performance of credit default swaps, like that of corporate bonds, is closely related to changes in credit spreads.

US and CAD investment grade credit spreads, the difference in yield between corporates and Canadas, tightened by.3 % and US high yield bonds tightened by 1 %.

The performance of CDS, like that of corporate bonds, is closely related to changes in credit spreads.

In the next few blogs, we will detail our approach to and back - tested results of employing credit spread (value) and volatility as factors in order to systematically construct a portfolio of U.S. investment - grade corporate bondIn the next few blogs, we will detail our approach to and back - tested results of employing credit spread (value) and volatility as factors in order to systematically construct a portfolio of U.S. investment - grade corporate bondin order to systematically construct a portfolio of U.S. investment - grade corporate bonds.

Two Factors: Volatility and Credit Spread To achieve better security selection, we chose two factors that empirically have demonstrated a strong relationship between factor exposure and performance statistics and that have long been incorporated in investment analysis by corporate bond portfolio managers.

Key credit spreads were widening, such as those between intermediate - term treasury bonds and riskier corporate bonds in funds like iShares Baa - Ba Rated Corporate Bond ETF (BATS: QLTB) or SPDR High Yield Bocorporate bonds in funds like iShares Baa - Ba Rated Corporate Bond ETF (BATS: QLTB) or SPDR High Yield BoCorporate Bond ETF (BATS: QLTB) or SPDR High Yield Bond (JNK).

Credit spreads have been declining, and more corporate bond deals are getting done in the credit markets.

In the construction of the S&P U.S. High Yield Low Volatility Corporate Bond Index, an individual bond's credit risk in a portfolio context is measured by its marginal contribution to risk (MCR), calculated as the product of its spread duration and the difference between the bond's option adjusted spread (OAS) and the spread - duration - adjusted portfolio average OAS (see Equation 1In the construction of the S&P U.S. High Yield Low Volatility Corporate Bond Index, an individual bond's credit risk in a portfolio context is measured by its marginal contribution to risk (MCR), calculated as the product of its spread duration and the difference between the bond's option adjusted spread (OAS) and the spread - duration - adjusted portfolio average OAS (see EquationBond Index, an individual bond's credit risk in a portfolio context is measured by its marginal contribution to risk (MCR), calculated as the product of its spread duration and the difference between the bond's option adjusted spread (OAS) and the spread - duration - adjusted portfolio average OAS (see Equationbond's credit risk in a portfolio context is measured by its marginal contribution to risk (MCR), calculated as the product of its spread duration and the difference between the bond's option adjusted spread (OAS) and the spread - duration - adjusted portfolio average OAS (see Equation 1in a portfolio context is measured by its marginal contribution to risk (MCR), calculated as the product of its spread duration and the difference between the bond's option adjusted spread (OAS) and the spread - duration - adjusted portfolio average OAS (see Equationbond's option adjusted spread (OAS) and the spread - duration - adjusted portfolio average OAS (see Equation 1).

The S&P 500 High Yield Corporate Bond Index presents a unique credit alternative to bridge the gap between existing investment grade, which offers spread levels of around 150 bps, and high - yield corporate credit, which offers north of 600 bps iCorporate Bond Index presents a unique credit alternative to bridge the gap between existing investment grade, which offers spread levels of around 150 bps, and high - yield corporate credit, which offers north of 600 bps icorporate credit, which offers north of 600 bps in spread.

When credit spreads are high, typically it is better to be in corporate bonds rather than stocks, but it does imply that stocks might be cheap relative to Treasury bonds.

Credit spreads are at record highs in the money markets and in the corporate bond markets.

When I was a corporate bond manager, I sold all of my inherited GM exposure at significantly over par in 2001 (spreads were under 200 bp).

If for example, banks were having trouble floating bonds because the spread of corporate bonds was too high versus government bonds (yields were very high because prices are low due to little demand to own these bank issued bonds) they could buy these types of bonds to get money flowing in this space if the central bank so desired.

Although some posters are right in saying that something like earnings yield vs corporate bond spread is possibly a better comparison, I still think AccruedInterest is fine with plotting a price level.

Suppose we had seven guys in the room, an economist, a guy from a ratings agency, an actuary, a guy who does capital structure arbitrage, a derivatives trader, A CDO manager, and a guy who does nonlinear dynamic modeling, and we asked them what the spread on a corporate bond should be.

As I commented to a Treasury staffer after the meeting, with financing rates so cheap to buy financial debts, regardless of what kind, it is no surprise that corporate bond spreads have tightened, while there is still little lending to finance growth in the real economy.

Further, though spreads for GM and GMAC are not at historically tight levels, spreads in the corporate bond market are at levels not seen since 1997.

In examining the subparts of the S&P 500 ® Bond Index, we can take a deeper look at how credit spreads have changed for AA - and BB - rated corporate bonds issued by constituents of the S&P 500.

Despite the spreading credit crunch, short - term corporate borrowing won't go away, says John Kornitzer, chief executive of Kornitzer Capital Management, which runs $ 6 billion in stock and bond assets.