Sentences with phrase «investors reach for yield»

In general, average retail investors reach for yield at the wrong time, and Wall Street is more than happy to facilitate that through structured notes and other high yielding investments where the risk is greater than the excess yield.

Market Killer When rates are low, investors reach for yield beyond what seems logical, according to a study outlined in The Wall Street Journal, which concluded that if rates rise and investors revert to less risky portfolios, equities could «be in for a big drop.»

Yet as long as rates stay low, too many investors reach for yield in ways that may be dangerous, he added..

The way to think about it is that investors reached for yield at a time when stocks were in trouble, and indeed, rates went lower.

Unlike Bombardier, we think the ARD deal is a classic late cycle example of investors reaching for yield without considering the downside risk.

Not exact matches

He says the actions of central banks «attempting to spark economic growth» are «severely punishing the world's savers and creating incentives to reach for yield, pushing investors into less liquid asset classes and increased levels of risk, with potentially dangerous financial and economic consequences.»

These benefits would (i) largely go to developers and contractors for infrastructure projects like new pipelines that would happen even without new incentives and so be highly regressive; (ii) raise costs by failing to reach the tax - free pension funds, sovereign wealth funds and international investors who are the most plausible sources of incremental infrastructure finance; (iii) not encourage at all the highest return maintenance projects like fixing potholes that do not yield a pecuniary return for investors; and (iv) by offering credits at an unprecedented 82 percent rate, invite all kinds of tax shelter abuse.

The lower for longer outlook for Fed rates extends investors» reach for yield, and we see it further supporting EMs.

These benefits would (i) largely go to developers and contractors for infrastructure projects like new pipelines that would happen even without new incentives and so be highly regressive; (ii) raise costs by failing to reach the tax - free pension funds, sovereign wealth funds and international investors that are the most plausible sources of incremental infrastructure finance; (iii) not encourage at all the highest return maintenance projects like fixing potholes that do not yield a pecuniary return for investors; and (iv) by offering credits at an unprecedented 82 per cent rate, invite all kinds of tax - shelter abuse.

This very low market volatility can lead investors to take on more risk, and in a period of still relatively low interest rates, to «reach for yield» — that is, buy riskier assets than one would otherwise, in order to achieve a desired profit or savings goal.

The reach - for - yield stops when T - bill yields drop so low that investors are indifferent between zero - interest cash and low - yielding Treasury bills.

Retirees and other investors are reaching farther and farther for yield, piling into all sorts of increasingly risky investments.

Investors have reached for yield without regard for risk.

BlackRock has observed that a convergence of market and behavioral dynamics has caused many investors to operate at the extremes as they seek income: They are taking undue risk in a reach for yield and at the same time hoarding cash.

Investors seeking income have taken to the extremes: reaching to the riskiest corners for yield while also piling up cash.

Investors and fund managers search for yield, extend maturities, reach for lower credit quality and shift assets from short term floating rate money market funds to bonds, bond funds and similar investments.

There is an important lesson for investors here: reaching for yield can be risky.

When rates are very low, as they've been, some investors «reach for yield».

There are many investors that are reaching for yield in this environment, and I think they will eventually get burned.

And in this search for higher yields, we find investors are reaching deeper and deeper into lower - grade fixed - income products, which come with significant credit and interest rate risks,» says Som Seif, president and CEO of Purpose Investments, through a statement.

While most income investors are reaching for big yields right now, a small group of «hidden yield» stocks are quietly handing smart investors growin....

Cerulli explains that the interest rate situation since the financial crisis «has pushed institutional fixed - income investors of all stripes to reach for yield to meet investment goals.»

In today's low yield environment, some investors go off course because they've become too intently focused on reaching for income.

We think one of the biggest mistakes that a lot of dividend investors make is reaching for yield.

Preferred shares have become popular in today's low interest rate environment as investors reach for higher yield.

Too often investors reach for the higher yield without understanding the risks involved.

If avoiding a painful recession requires zero or negative interest rates that juice up asset prices and force investors — through financial repression — to reach for yield and take more risk than they should, then — so the wisdom of today's central bankers» goes — so be it.

Some investors are reaching for yield in risky places.

a. Preamble — The individual investor has been reaching for yield, unwisely using past performance as a guide to future success, and therefore believing that bonds are the best investment for 2013.

For example, investors or portfolio managers dissatisfied with low returns may reach for yield by taking on more credit risk, duration risk, or leveraFor example, investors or portfolio managers dissatisfied with low returns may reach for yield by taking on more credit risk, duration risk, or leverafor yield by taking on more credit risk, duration risk, or leverage.

«With the increased demand for net lease, investors have been reaching for additional yield that franchisee properties provide,» Blankstein says.

Commercial property deals in Canada reached a record for a second consecutive year and show no signs of slowing as investors continue seeking high - yield assets in a haven from global turmoil, according to CBRE Group Inc..