Such tight spreads mean that even a small selloff can wipe out credit's extra
income over government bonds.
Not exact matches
Over the past few sessions, we've seen fairly consistent rises across European government bond markets and that's spilled over to the U.S.» said Anthony Valeri, senior vice president of fixed income research at LPL Financ
Over the past few sessions, we've seen fairly consistent rises across European
government bond markets and that's spilled
over to the U.S.» said Anthony Valeri, senior vice president of fixed income research at LPL Financ
over to the U.S.» said Anthony Valeri, senior vice president of fixed
income research at LPL Financial.
estimate of annual
income from a specific security position
over the next rolling 12 months; calculated for U.S.
government, corporate, and municipal
bonds, and CDs by multiplying the coupon rate by the face value of the security; calculated for common stocks (including ADRs and REITs) and mutual funds using an Indicated Annual Dividend (IAD); calculated for fixed rate
bonds (including treasury, agency, GSE, corporate, and municipal
bonds), CDs, common stocks, ADRs, REITs, and mutual funds when available; not calculated for preferred stocks, ETFs, ETNs, UITs, international stocks, closed - end funds, and certain types of
bonds
They can get
over 4 % fixed from 10 - year UK
government bonds — a huge spread
over short - term rates, but still not very attractive compared to 3.25 % from the FTSE 100, given that dividend
income should rise
over time.
With an attractive yield advantage
over comparable maturity
government bond mutual funds of similar duration and quality, the Fund may serve as a core holding for building diversified
income portfolios.
Within U.S. fixed
income, we like Treasury inflation - protected
bonds over nominal
government debt.
Fixed
income has a role in portfolios and we like credit
over government bonds, but we generally prefer equities
over bonds in a low - return world.
Against this backdrop, we broadly prefer equities
over fixed
income, and selected credit
over government bonds.
Over the past year $ 50 to $ 75 billion in foreign funds has found its way into the Canadian fixed -
income marketplace, including
government - issued
bonds but also corporate
bonds.
And while stocks don't offer the guarantee that comes with
government bonds, the
income they generate tends to grow
over time.
This was when stock markets were averaging 15 % annually, 3 % GDP growth was considered a bad year,
government bonds yielded between 5 % and 10 %, the highest marginal tax rate on ordinary
income was ~ 70 %, just about the only way to invest was to pay a full - service stockbroker
over 5 % commission to buy a stock or a mutual fund, and inflation was averaging 4 % to 8 % annually.