Sentences with phrase «low nominal yields»

Even with the prospect of a near - term easing of inflation and perhaps even some negative CPI inflation figures, the combination of strong real yields and principal safety makes these a good harbor for investors who want to sleep nights without accepting untenably low nominal yields (and the high associated durations - which I suspect many investors currently overlook).

Not exact matches

(And with nominal yields close to record lows, the same could be said for corporate bonds.)

High - yield stocks generated an annualized nominal return of 12.2 %; low - yield, 10.4 %.

If nominal GDP growth is going to be «lower for longer» then so will bond yields.

Yet low nominal gross domestic product growth and aging populations argue for lower bond yields than in the past — and sustained demand for high quality bonds.

Inflation expectations, as measured by the difference between yields on 10 - year nominal Treasury notes and Treasury inflation protected securities (Tips), have risen to 2.25 per cent from a low of around 2.10 a month ago.

When savings are high, the term premium is more likely to be low, in the process keeping nominal yields down.

In contrast to yields on nominal bonds, yields on inflation - linked bonds have for the past six months remained close to their lowest recorded levels.

The level of yields — around 4 1/4 per cent at present — looks low not only on historical comparisons but also relative to normal benchmarks such as the growth rate of nominal GDP, which in the US is currently around 6 per cent (Graph 16).

Bond yields are low because nominal growth is remarkably weak, not a great environment for corporate earnings.

Breakeven levels (the difference between a yield of a nominal bond and an inflation - linked bond) are up over 40 basis points (bps, or 0.40 %) from the summer low and over 80 bps from the February nadir.

If bond yields drop from 6 % to 5 %, bond buyers immediately grasp that their nominal return will be lower.

The yield of a global portfolio is about as low as its ever been from a cyclically adjusted P / E, credit spread, and nominal interest rate standpoint, while the global economy is more likely to be in the later (than early) stages of the business cycle.

High yield bonds are risky enough that when nominal yields get low enough, it is probably time to start reducing exposure.

Just whack it with open market purchases or a tender, finance it with low yield guaranteed debt, and enjoy the reduction in nominal debt outstanding.

As a result, while markets would appear to be quite expensive today based on nominal earnings yield, which is in the top quintile of all values over the past 140 years, the real earnings yield is less extreme because yoy inflation is so low.

Real Yields Another consideration is if TIPS yields are high or low relative to the real return on nominal bonds of the same matYields Another consideration is if TIPS yields are high or low relative to the real return on nominal bonds of the same matyields are high or low relative to the real return on nominal bonds of the same maturity.

Thus, while TIPS yields are at historically low levels, TIPS continue to look like a clear choice over nominal Treasuries in relative terms, because investors aren't paying a premium for unexpected inflation.