Sentences with phrase «junk bond yields»

I still think there's scope for a significant reduction in that discount — after all, junk bond yields just hit 5 %!

It's also not the time to chase attractive junk bond yields, since they're getting hit by interest rate risk and credit risk at the same time.

Worst of both worlds in exchange for yield: junk bond yields if things are good, stock market losses if things are bad.

As Wolf Richter pointed out for Wolf Street earlier this month: «Since mid-December 2016, the Fed has hiked rates four times, in total by 1 percentage point, but over the same period, junk bond yields rated CCC or below have declined 1.5 percentage points as the bonds have rallied.»

Yet, bond investors have only piled on more risk, from record growth in high - risk, covenant - lite loans to leveraged - loan funds holding billions in collateral in over-indebted retailers to sustained lows in junk bond yields.

Readers have no doubt noticed that numerous inter-market correlations seem to have been suspended lately, and that many things are happening that superficially seem to make little sense (e.g. falling junk bond yields while defaults are surging; the yen rising since the BoJ adopted negative rates; stocks rising amid a persistent decline in earnings growth; bonds, gold and stocks moving in unison, etc., etc.).

Private equity deals will likely continue to be made until something happens to disturb that gap, such as junk bond yield spreads widening or interest rates moving up, Levkovich said.

U.S. Municipal Bonds: (Data as of May 16,2013) Corporate junk bond yields have risen as mutual funds have seen outflows.

Junk bond yields at record lows.

The $ 1.2 trillion market for U.S. junk bonds yields about 6.6 percent, double what's offered by higher - rated company debt, according to Bank of America Merrill Lynch index data.

With market volatility hitting multi-decade lows, junk bond yields also at record lows, the median price / revenue ratio of S&P 500 constituents at a record high well - beyond 2000 levels, and the most strenuously overvalued, overbought, overbullish syndromes we define, I'm increasingly concerned about the potential for an abrupt «air pocket» in the prices of risky assets that could attend even a modest upward shift in risk premiums.

For example, it does not include euro bonds («reverse Yankees») that are hot in Europe, where junk bond yields are at a ludicrously low 2.35 % on average, and the high - grade yield is just above zero.

The structural issue at work encouraging the deal - making is that cash flow yields are markedly above junk bond yields, similar to the environment during the late «80s when the market in junk bonds flourished.

But with junk bond yields still over 6 % in an environment in which the 10 - year Treasury only yields 2 %, I have no reason to believe that the top is in.

Even if your view is gloomier than mine, you have to admit that a 5.5 percentage point premium on junk bond yields is not a bad deal.

As Wolf Richter pointed out for Wolf Street earlier this month: «Since mid-December 2016, the Fed has hiked rates four times, in total by 1 percentage point, but over the same period, junk bond yields rated CCC or below have declined 1.5 percentage points as the bonds have rallied.»

Yet, bond investors have only piled on more risk, from record growth in high - risk, covenant - lite loans to leveraged - loan funds holding billions in collateral in over-indebted retailers to sustained lows in junk bond yields.

Corporate junk bond yields have risen as mutual funds have seen outflows.

So the solution is to become a junk bond yield hog.

For example, in a world where short - term interest rates are zero, Wall Street acts as if a 2 % dividend yield on equities, or a 5 % junk bond yield is enough to make these securities appropriate even for investors with short horizons, not factoring in any compensation for risk or likely capital losses.

Average yields on investment - grade corporate bonds have risen just 2 basis points this month to 96 basis points more than Treasuries, while junk bond yields are up just 7 basis points to 253 basis points over Treasuries, according to Merrill Lynch data.

Indeed, since the end of 2014, the dollar has rocketed 20 %, the S&P 500 has lost roughly 7 % and junk bond yields are the highest that they've been since 2009.