Sentences with phrase «low bond yields make»

Not exact matches

LONDON, April 23 - Hamstrung by a renewed slump in volatility and lack of clear market direction, FX and bond speculators are making historically big bets on a lower dollar and higher yields.

This makes sense; lower growth should result in bond yields falling, anticipating lower Bank of Canada rates in the future and less need for a risk premium around inflation.

The potential counter weights that could cap the 10 - year yield would be a negative stock market reaction that drives investors to bonds; lower interest rates outside the U.S. that make the U.S. debt relatively more attractive, and good demand for longer - dated securities from insurers and others.

Whatever happens to rates from here it makes sense to reign in your expectations as a bond investor based on today's low starting yields.

But this can drive the prices of these bonds up, making them expensive relative to lower yielding securities.

-LSB-...] happens to rates from here it makes sense to reign in your expectations as a bond investor based on today's low starting yields.

Choose how you want to make money by following as many as five strategies: High - Yield, Dividend Growth, Low Risk, Real Estate, Options, and Bonds strategies

The SNB's «profit was lifted by a trio of positive forces: Low bond yields preserved the value of its foreign bonds; higher equity prices raised the value of SNB holdings... and the weaker Swiss currency made those foreign assets worth more in franc terms.»

The amount of extra yield over Treasuries provided by high yield bonds recently was 3.22 %, which is the lowest it has been in 10 years and makes some investors cautious.

All the excess liquidity being added to Europe and suppressing bond yields makes European equities, which trade at markedly lower multiples than in the U.S., relatively attractive.

As of the first quarter of 2012, Turkey had a public debt balance equal to 43 % of annual GDP, making it one of the better financed governments in all of Europe (see how the fiscal strength of many emerging markets like Turkey in High Yield International Bond ETFs can deliver strong returns with low correlation).

The amount of extra yield over Treasuries provided by high yield bonds recently was 3.22 %, which is the lowest it has been in 10 years and makes some investors cautious.

Second, the low rates on bonds and GICs have made dividend yields even more attractive to income investors.

In a perverse sense, it makes sense that someone will write a book pushing high quality bonds when the yields are so low.

Mortgage bond yields tend to be lower than corporate bond yields, as the securitization of mortgages makes such bonds safer investments.

Given that bond yields are at record lows right now (way below 4 %), it makes zero sense to borrow money to invest in bonds.

Morningstar also noted in a recent report that some funds holding short - term debt have been juicing yields by investing in lower - quality bonds, making them even more vulnerable.

Investors seek more risk in equities as bond yields get low... And higher equity valuations make bond investors believe it's just as safe as it was before when both debt and equity valuations were lower (and objectively less risky).

Uridashi bonds became very popular in the 2000s and are often associated with the carry trade in which a loan is made in a low interest currency to buy instruments in a higher yield currency.

the lowest potential yield that can be received on a bond without the issuer actually defaulting; calculated by making worst - case scenario assumptions on the issue by calculating the returns that would be received if any in - whole mandatory redemptive provisions are exercised by the issuer; partial redemptive provisions (such as sinking funds) are not included in yield to worst calculations; the yield to worst metric is used to evaluate the worst - case scenario for yield to help investors manage risks and ensure that specific income requirements will still be met even in the worst scenarios

But this can drive the prices of these bonds up, making them expensive relative to lower yielding securities.

My current thought is maybe the parent company of the SPE wants to make a profit by investing in undervalued loans (the loan is considered by the seller to default but SPE doesn't agree with such expectation) while maintaining a relatively low financing cost (maybe SPE has a low financing cost due to its parent's strong - rating or maybe due to a sudden plunge of yield in bond market).

Increasing life expectancy, disappearing sources of guaranteed income, and historically low yields on bonds make for some tough fixed - income investing conditions; a disciplined approach can help.

Indexing bonds also makes sense because of their lower yields compared to stocks.

Vanguard's high - yield corporate bond fund, which invests in low - quality «junk» bonds, made money in 2013, returning 4.5 %.

While fixed - income securities such as bonds and CDs have been popular with income investors in the past, the low yields we've seen in recent years have made it difficult to generate meaningful returns.

But I still get a steady stream of email from readers who think bonds «make no sense anymore» because they have low yields and will fall in value if interest rates rise.

We don't suggest any bond mutual funds for the Honour Roll portfolios this year, mainly because bond yields have dropped to such low levels that investing in a managed bond fund doesn't make sense.

Justin Bender of PWL Capital agrees it can make sense to hold low - yielding GICs in taxable accounts, but he stresses most bonds are currently trading at premiums, and can easily suffer negative after - tax returns.

Alternatively, if interest rates go down, the current value of your bond increases on the open market to make it appear as if it is yielding a lower rate.

As a result of the downgrade, the prices of the company's bonds decline and yields increase, making the debt attractive to contrarian investors who see low oil prices as a temporary condition.

As lower yields become a persistent feature of the markets, we're seeing more investors make dedicated allocations to sectors with greater return potential, like investment - grade and high yield bonds.

When interest rates fall, newly issued bonds will pay a lower yield than existing issues, which makes the older bonds more attractive.

In other words, those European bonds actually make U.S. bonds look cheap, meaning that yields have room to go lower.

I wonder — given incredibly low yields across all US bond segments and that the only way for most bond values to go is likely down, does investing in any bonds at this point make sense?

Choose how you want to make money by following as many as five strategies: High - Yield, Dividend Growth, Low Risk, Real Estate, Options, and Bonds strategies

At the same time, the prospect of continued low interest rates means less favorable yield on government bonds and fixed income products, making higher yielding investments backed by commercial real estate all the more attractive.