Sentences with phrase «interest yielding investment»

Otherwise it would be better to keep the money in fixed interest yielding investment such as Treasury Bills or Bonds.

Not exact matches

And with a growing body of research that suggests employee happiness yields a promising return on investment, many employers are interested in perking up their workers with more than just K - Cup coffee.
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Few other high - yield investments exhibit nearly zero correlation to interest rates.
Interest rate risk: is the risk that an investment's value will change due to a change in the absolute level of interest rates, in the spread between two rates, in the shape of the yield curve, or in any other interest rate relatInterest rate risk: is the risk that an investment's value will change due to a change in the absolute level of interest rates, in the spread between two rates, in the shape of the yield curve, or in any other interest rate relatinterest rates, in the spread between two rates, in the shape of the yield curve, or in any other interest rate relatinterest rate relationship.
During times of recession the economy is stimulated with low interest rates and once they get low enough, the yield on bonds and other fixed investments becomes so unattractive that money starts to flow into equities.
Structuring, upfront and similar fees are recorded as a discount on investments purchased and are accreted into interest income, on a straight line basis, which we have determined not to be materially different from the effective yield method.
Achievement of these goals was considered by the HRC as very challenging, even aggressive, given the expected modest economic growth for 2007 for the financial services industry, the impact and duration of the on - going flat / inverted yield curve (meaning short - term interest rates that are virtually equal to or exceed long - term interest rates, thus lowering profit margins for financial services companies that borrow cash at short - term rates and lend at long - term rates), potentially higher credit losses, fewer available high - quality, high - yielding loans and investment opportunities, and a consumer shift from non-interest to interest - bearing deposits.
In a zero - interest rate world (Figure 7), these provide yields that are much higher than those found in more conventional investments like U.S. Treasury bonds or money market accounts.
But keep in mind: More interest rate sensitive bonds generally have higher yields, so moving to a shorter duration investment could result in less income.
Moody's also recently evaluated the level of interest expense to EBITDA for 18 corporate sectors across investment grade and high - yield.
High - yield bonds are in the eighth year of an investment cycle that has seen assets under management grow threefold, to $ 300 billion, so interest among investors remains high.
Our Global Market Strategies segment, established in 1999 with our first high yield fund, advises a group of 46 active funds that pursue investment opportunities across various types of credit, equities and alternative instruments, including bank loans, high yield debt, structured credit products, distressed debt, corporate mezzanine, energy mezzanine opportunities and long / short high - grade and high - yield credit instruments, emerging markets equities, and (with regards to certain macroeconomic strategies) currencies, commodities and interest rate products and their derivatives.
The «search for yield», i.e. for better return on financial investments than the declining interest rate, thus led to the series of bubbles & bursts: deregulated savings & loans (immediately), high - tech stocks (late 90's), mortgage derivatives — > house prices (2000's).
I can't find a more exciting investment with an interesting yield / risk ratio!
When interest rates rise, they can become a challenge for stocks because they offer higher yielding investment alternatives and also make for higher borrowing costs for corporations.
Just because interest rates are at 1.5 % doesn't mean we like an investment that yields 2 - 3 %.
Investing in high yield fixed income securities, otherwise known as «junk bonds», is considered speculative and involves greater risk of loss of principal and interest than investing in investment grade fixed income securities.
Default risk Historically, the risk of default on principal, interest, or both, is greater for high yield bonds than for investment grade bonds.
One way to diversify traditional fixed income investments is to consider strategies that shift away from highly indebted companies and offer a balance between interest rate and credit risk... while still providing an attractive yield.
With the current interest rate of CD's and treasury notes having gotten so low, investors are willing to consider other high yielding investment sources.
With interest rates on low - risk investments falling to low levels in many countries, investors have sought to maintain yields by moving into higher - risk assets such as corporate debt and emerging market debt.
This is evident in a number of developments, including: increased demand for higher - risk assets; the increase in «carry trades» — a form of gearing where funds are borrowed short - term at low interest rates and invested in higher - yielding assets, often in other countries; growth in alternative investment vehicles such as hedge funds; and growth in alternative investment strategies such as selling embedded options (see Box A).
It is interesting to note, however, that investors do seem to be differentiating between the various types of high - yield investments.
This low interest rate environment and the growing pool of institutional funds have encouraged investors to search for investment options that offer a higher yield.
As is common in countries with negative real interest rates, German investors are pulling money out of low - yielding bank accounts and investments and plowing it into all types of real estate, causing prices to boom for the first time in a very long while.
Tags: alpha, Institutional Investment, interest rates, Investing, Investor Relations, risk, risk - free rate of return, Treasuries, Warren Buffett, yield
7 - day Current Yield reflects the interest income per share a money market fund earned on its investments for the last 7 days (annualized).
You may also be interested in considering High Yield Bond ETFs High Yield Real Estate Investment Trusts (REITs) High Yield Closed End Funds High Yield Utility Stock ETFs Return from High Yield ETFs to More on High Yield Passive Income
Since the dividend yield is fairly low, additional capital growth is expected to make it an interesting investment.
As seen in prior cycles, changes in short - term interest rates alone had yielded little effect on financial conditions, as buoyant risk sentiment strengthened equities, corporate bonds, as well as various forms of «esoteric» investments.
Interest Rate Risk is the risk that an investment's value will change due to a change in the absolute level of interest rates, in the spread between two rates, in the shape of the yield curve or in any other interest rate relatInterest Rate Risk is the risk that an investment's value will change due to a change in the absolute level of interest rates, in the spread between two rates, in the shape of the yield curve or in any other interest rate relatinterest rates, in the spread between two rates, in the shape of the yield curve or in any other interest rate relatinterest rate relationship.
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.
This is because investors are worried about rising interest rates, something that makes investment in utilities less attractive compared to bonds and other high yield stocks.
At the same time, the carry between Chinese interest rates and U.S. Treasury yields has now turned negative, meaning that there is no longer a favorable interest rate differential to encourage Chinese investment in U.S. government debt.
With interest rates falling to very low levels in the US, global investors focused on investments with a yield pick - up.
This is not unlike the dilemma facing many retirees and other individual investors: holding ultra-safe interest - bearing investments is wise past a certain age; yet when yields are lower than the inflation rate, this strategy erodes buying power and undermines long - term financial security.
Investments in utility company securities, if purchased for dividend yield, involve additional interest rate risks.
If you're enjoying this low - interest loan, it may make more sense to invest that lump sum in an investment that will yield more returns than you're paying to borrow for your home (especially when factoring in tax benefits).
Essentially, lenders want to make sure that you're using the funds for a good investment that will yield enough return for you to pay back the full loan and interest on their set schedule.
The primary attraction for investors is that lower rated borrowers pay a higher rate of interest than investment grade borrowers, so bank loan funds and ETFs typically offer a higher dividend yield.
Dividend Yield is the annual rate of return of an investment paid in dividends or interest, expressed as a percentage.
She received $ 1,200 in dividends from her investments and $ 50 in interest from a high - yield savings account.
The Deutsche X-trackers Emerging Markets Bond Interest Rate Hedged ETF (EMIH), the Deutsche X-trackers Investment Grade Bond Interest Rate Hedged ETF (IGIH) and the Deutsche X-trackers High Yield Corporate Bond - Interest Rate Hedged ETF (HYIH) will begin trading on the Bats exchange on June 9.
Today three Deutsche Bank ETFs — the Deutsche X-trackers Emerging Markets Bond Interest Rate Hedged ETF (EMIH), the Deutsche X-trackers Investment Grade Bond Interest Rate Hedged ETF (IGIH) and the Deutsche X-trackers High Yield Corporate Bond - Interest Rate Hedged ETF (HYIH)-- delisted from the NYSE Arca exchange and listed on Bats» BZX Exchange.
This is because higher interest rates generally mean that property prices could temporarily decline, and thus the cash yield on investment increases.
To start, interest rates are likely to move higher at a slow and moderate pace that could keep bond yields well below historical averages over the next five years, according to the BlackRock Investment Institute (BII).
Although yields are ultralow — the 10 - year U.S. Treasury yield is currently around 1.60 % — the duration, or interest rate sensitivity, of bond investments has steadily risen (source: Bloomberg).
The way I process this information is that REIT's valuations, like most other high yield income investments, initially fall because there is a direct competition between rising interest rates and REIT dividend yields.
To start, interest rates are likely to move higher at a slow and moderate pace that could keep bond yields well below historical averages over the next five years, according to the BlackRock Investment Institute (BII).
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