Sentences with phrase «long bond trade»

The time will come to end the high quality long bond trade, but at present, who knows?

Not exact matches

While I don't presume to read traders» (or trading computers») minds (see Barry ritholtz» note this morning about ex post facto rationalizations), generally speaking there is concern that the «taper» of long term bond purchases will cause bond yields (the percent of interest paid on them) to rise.

Mad Money host Jim Cramer goes off the charts with the help of Carly Garner of DeCarley Trading, who expects the long rally in bond prices to soon end.

According to Morningstar Direct, $ 59 billion is invested in long - term bond funds and exchange - traded funds (defined as portfolios with average durations above six years).

Bond can make short - term trade - offs for long - term payoffs.

It used the FSR to report that traders and investors in Canada say that it is taking longer to complete trades in fixed - income markets and that larger trades that used to go through easily now must be broken up into smaller bites, especially when moving corporate bonds.

Chief Executive Officer Lloyd Blankfein, 61, is trying to ride out a years - long bond - trading slump that's being compounded by market swings and stiffer regulations — challenges that have forced many competitors to scale back.

Each month, Palhares and Richardson sorted corporate bonds into quintiles based on each liquidity measure and computed the return of a long / short portfolio that buys the least liquid bonds (i.e., smaller issue sizes, higher bid / ask spreads, lower trading volume, higher price impact or higher frequency of zero - trading days) and sells the most liquid bonds (i.e., larger issue sizes, smaller bid / ask spreads, higher trading volume, lower price impact or lower frequency of zero - trading days).

We define the reflation trade as favoring assets likely to benefit from rising growth and inflation, such as cyclical equities and emerging markets (EM), while limiting exposure to long - term government bonds.

But panelist Daniel Greenhaus, chief global strategist at institutional trading brokerage BTIG, who makes appearances on Bloomberg TV and works with clients in the hedge fund world, said that hedgies take a longer view and avoid the noise in the blogosphere: «If you talk to George Soros, all he wants is the big picture view of QE tapering: «When will the Fed stop buying back bonds?

But with long - term bonds and non-cyclical equity sectors trading at historically extreme valuations while cyclical sectors trade at valuations below their long - term average, we think that risk aversion is creating numerous investment opportunities for investors willing to build a portfolio of more economically sensitive companies.

«We remember vividly 35 years ago staring at long - term impeccable bonds trading at 15 % to 17 % yields, thinking; «Why bother trading, hedging and knocking ourselves out?

Posted - In: Long Ideas Bonds Specialty ETFs Top Stories Economics Federal Reserve Markets Trading Ideas Best of Benzinga

Posted - In: Long Ideas News Bonds Broad U.S. Equity ETFs Specialty ETFs New ETFs Markets Trading Ideas Best of Benzinga

If the Dollar broke lower, its likely too that bonds and duration would rally; defensives (staples, utes, reits) and growth (tech / biotech / discret) squeeze against crowded value unwinding (fins, energy, indus); yen and euro would squeeze mightily; gold squeezes while copper pukes in a favorite commodities «pair» unwind; HY could reverse weaker vs IG (currently everybody long CCC vs BB on the high beta trade)... this would be the theoretical path to our next pain - trade or even VaR shock.

One popular bond investing strategy is called «laddering» and provides a trade - off between lower rates on short - term bonds and higher interest rate risk of long - term bonds.

The common element is that any long position taken in a specific equity is offset by a short position in either a merger partner (risk arbitrage), an «overvalued» member of the same sector (long / short paired trading), a convertible bond (convertible arbitrage), a futures contract (index arbitrage) or an option contract (volatility arbitrage).

The trade - off is that longer - term bonds usually offer higher rates to start out.

If the bonds don't match your time horizon, then you either end up trading shorter term bonds until your 10 years are up (which is an expensive headache), or you take unnecessary interest rate risk with longer term bonds.

If you want to get your cash off the sidelines but aren't ready to commit to something long term, consider a short - term bond exchange - traded fund (ETF).

I like to say it was like being the long bond trader back in the 1980s — possibly the toughest trading job on the Street.

Each self - publishing enthusiast might collect his or her industry rep from EC1 and bond deeply during the long pilgrimage together into the wilds of EC2 so that trade people have a chance to see and hear what's being offered and said to and about self - publishers.

Bond trading can be short, or long term and allows bond traders to take a position on future interest rate movements while leveraging the security and stability of government treasurBond trading can be short, or long term and allows bond traders to take a position on future interest rate movements while leveraging the security and stability of government treasurbond traders to take a position on future interest rate movements while leveraging the security and stability of government treasuries.

Managed futures as an asset class are historically non-correlated to the stock and bond markets over long term periods and encompass a wide range of trading strategies (generally taking long / short positions in futures contracts on equity indices, commodities, financials and currencies).

Trade: Buy bonds when the ratio is more than half a standard deviation below its long - run moving average (bonds are cheap relative to stocks) sell when it's more than half a standard deviation above its long - run moving average (stocks are cheap relative to bonds).

Stock ETFs (exchange - traded funds) aim to provide long - term growth — unlike bond ETFs, which focus on income.

Even if the primary market were dominated by buy - and - hold investors (more common in bonds, less common in stocks), the speculation inherent in much secondary trading provides real value to the IPO syndicates, and longer - term investors.

There were new trades that could be done by comparing the cash bond market and CDS market, going long one and short the other.

Yet someone who buys long - term securities intending to quickly resell rather than hold is a speculator, and thirty - year Treasury bonds have also effectively become trading sardines.

This is a very crowded trade: short the euro, long bonds, long puts, short US financials, 100 % out of the stock market for investors, and short for many hedge funds.

If you want to get your cash off the sidelines but aren't ready to commit to something long term, consider a short - term bond exchange - traded fund (ETF).

Inflation is coming, and I am likely to trade away longer nominal bonds for short bonds, and inflation - adjusted bonds.

BMO already has exchange - traded funds covering short - term (ZCS), intermediate (ZCM), and long - term (ZLC) corporate bonds, and these ETFs have average terms of about three, seven and 22 years, respectively.

The only trade - off is that strip bonds have a longer duration than traditional bonds of the same maturity, so BXF (with a duration of about 3.6) will be somewhat more sensitive to interest rate movements than CLF (duration 2.5) and XSB (duration 2.8).

For the backtests, iShares Barclays Aggregate Bond (AGG) was used in lieu of BND and iShares MSCI EAFE (EFA) was used in lieu of VEU because they have longer trading histories:

The only ways I can think of is to 1) not trade leveraged instruments (longer time frames work great on stocks, etfs, bonds, etc...) or 2) have really tight stops if I'm trading leveraged (but again I find that tight stops get hit a lot).

It remains in effect only for the day, and usually results in the prompt purchase or sale of all the shares of stock, options contracts, or bonds in question, as long as the security is actively traded and market conditions permit.

I think it was somewhere around a 15 % yield on a 1 - yr GoC T - Bill, but I believe that the 10 - yr long bond was trading way down at an 8 % yield.

While lower spreads on trading bond ETFs help offset this somewhat, the issue will still prevail with a buy - and - hold strategy over the longer term.

The problem with many of the long - term debt / gilt funds is that they try to play an active role in bond trading and then take wrong calls, like a normal retail investor.

«The best example is credit long / short or hedge fund type strategies,» he says, adding that the number of bonds that trade actively and can execute an effective strategy has diminished, so plan sponsors may not have many options in facilitating trades.

The common element is that any long position taken in a specific equity is offset by a short position in either a merger partner (risk arbitrage), an «overvalued» member of the same sector (long / short paired trading), a convertible bond (convertible arbitrage), a futures contract (index arbitrage) or an option contract (volatility arbitrage).

Spanish bond spreads are trading at 13 times their longer - term average.

Each month, Palhares and Richardson sorted corporate bonds into quintiles based on each liquidity measure and computed the return of a long / short portfolio that buys the least liquid bonds (i.e., smaller issue sizes, higher bid / ask spreads, lower trading volume, higher price impact or higher frequency of zero - trading days) and sells the most liquid bonds (i.e., larger issue sizes, smaller bid / ask spreads, higher trading volume, lower price impact or lower frequency of zero - trading days).

Maybe they could reverse their trade in long Treasuries, Agencies, and Mortgage bonds.

(I would tell you that he taught me how to trade corporate bonds, even though he has never traded corporates, but that would be a long story.)

If you hang around bond investing long enough, you run into the phrase «carry trade.»

When it comes to setting rates, certain loans, such as residential home mortgage loans, may not be based on the prime rate but rather trade off the U.S. Treasury Bill rate (a short - term government rate), the London Interbank Offered Rate (LIBOR) and longer - term U.S. Treasury bonds.

While the Fed continues to taper, longer - dated bonds are starting to settle into a reasonable trading range.

Do that, and you'll gain exposure to virtually every type of publicly traded stock in the world (large and small, growth and value, domestic and foreign, all industries and sectors) as well as the entire U.S. investment - grade taxable bond market (short - to long - term maturities, corporates, Treasuries and mortgage - backed issues).