Sentences with phrase «low yield levels»

The current low interest rate environment globally has pushed the majority of fixed income securities to record - low yield levels across the board.
The real risk for bonds, especially at these low yield levels, will almost always come from inflation.
Interest rate risk is worth considering since volatility is heightened at lower yield levels.

Not exact matches

NEW YORK, April 23 - The U.S. dollar rallied to a four - month high on Monday as the 10 - year Treasury yield's climb toward the psychologically important 3 percent level spurred buying of the greenback, leaving the euro and yen lower.
«Valuations are at extremely attractive levels considering bond yields and low inflation expectations.
Meanwhile government bond yields, a reliable barometer of market fear, are falling to record low levels as investors engage in a panicked hunt for risk - free assets.
RATES STILL LOW: Even as concerns about rising bond yields and interest rates spook some investors, bulls are quick to mention that rates are rising off extremely low leveLOW: Even as concerns about rising bond yields and interest rates spook some investors, bulls are quick to mention that rates are rising off extremely low levelow levels.
And now the yield curve is threatening to invert again, with the spread between 10 - and two - year Treasury note yields now at its lowest level since that fateful year.
Bonds tumbled as upbeat consumer spending data lowered demand for U.S. debt, pushing the two - year note yield to its highest level since 2011.
Bonds flipped between negative and positive territory as concerns about economic growth pushed the 10 - year note yield to lowest level since April.
«Bond yields are at the lowest level that most retirees have seen in their lifetime,» Zemsky said.
In fact, credit spreads in many markets are trading at the lowest levels as a percentage of their overall yield in a decade (see chart below).
Yields are close to their lowest levels in history.
Treasury yields edge lower on Thursday, with the 10 - year government bond hanging around its lowest level in about seven weeks
But a continuation of favorable economic growth and low default levels — which we expect — and measured Federal Reserve tightening — which we also expect — should support more narrow high - yield bond spreads for some time to come.
target and maximum levels, assumed, for Mr. Hoyt's Wholesale Banking Group, continued double - digit loan growth and favorable credit quality; for Mr. Oman's Home and Consumer Finance Group, improvement in the home mortgage business due to cost control and expected improvements in the yield curve favorably affecting earnings from hedging activities; and for Ms. Tolstedt's Community Banking Group, growth in deposits, especially low or no - cost core deposits, continued loan growth, and stable credit loss rates.
U.S. rates hit super-low levels, as investors loaded up on Treasurys in the face of lower and negative yields in Europe and Japan, and if long - end rates rise in those regions, investors could dump Treasurys.
Yet Treasury yields are still testing all - time low levels, and the Federal Reserve (Fed)'s rate normalization cycle is likely to continue, albeit very slowly.
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.
The neutral rate — which anchors the level of the entire yield curve — is a useful starting point for understanding what's driving low interest rates.
With Group of Seven (G7) sovereign bond yields at historically low levels, some income - seeking investors have turned to higher - volatility securities like dividend - paying stocks in an attempt to capture additional income.
As global bond yields fall to ever - lower levels, BlackRock Global Chief Investment Strategist Richard Turnill explores the reason for the downward trend.
This was a function of the low level of market yields, as well as the low level of volatility and yield movements.
In some cases, a lower valuation with lower preferred share rights may yield a higher economic outcome for common shareholders than a higher valuation with a high level of preferred share rights.
4 - 5 % on munis is definitely a nice yield at a very low level of risk.
The government's 10 - year bonds rose, pushing yields to their lowest level this year, while the benchmark BUX stock index rallied the most in six weeks.
In bond markets, yields on 10 year bonds are now at their lowest levels for two decades.
Interest rate risk Although high yield bonds have relatively low levels of interest rate risk for a given duration or maturity compared to other bond types, this risk can nevertheless be a factor.
If five years from now the yield simply returned to its level of a decade ago (and just in case you think I'm cherry picking, over the past 25 years it has averaged a 7.5 % yield and at the low in 1981 was twice that), bond investors would suffer a meaningful loss of capital.
Structural factors such as aging populations, poor productivity growth and high debt levels mean historically low government bond yields are likely here to stay.
Lower duration TIPS funds» headline yield level may be lower, but their portfolio impact may be more beneficial than broad - based TIPS because they require less duration (risk) to earn that yield,» added MLower duration TIPS funds» headline yield level may be lower, but their portfolio impact may be more beneficial than broad - based TIPS because they require less duration (risk) to earn that yield,» added Mlower, but their portfolio impact may be more beneficial than broad - based TIPS because they require less duration (risk) to earn that yield,» added Mazza.
However, they remain close to the low level prevailing before the Asian crisis, reflecting the generally benign environment for most emerging markets as well as investor appetite for higher yields than currently prevail in industrial countries.
Valentum's investment policy favours companies with low - debt levels, high FCF yields and high quality management teams.
The continuing low level of government bond yields has supported the search for yield that has been evident over the past couple of years, with the spread between yields on US government debt and yields on both corporate and emerging market debt remaining around historical lows over the past three months (Box B).
While the low level of credit spreads in Australia (and in other major bond markets) largely reflects favourable trading conditions for corporates, there is evidence that the search for yield has been a contributing factor.
With interest rates on low - risk investments falling to low levels in many countries, investors have sought to maintain yields by moving into higher - risk assets such as corporate debt and emerging market debt.
Rate and yield increases will likely remain within the context of still generally low - yield levels.
Notwithstanding this rise, bond yields in Japan remain at historically low levels, with 10 - year yields at 1.8 per cent.
So assuming earnings growth is not affected, slower inflation and lower bond yields might support higher P / E levels.
Putting aside the performance of bonds during the bear market beginning in 1980 (both because the starting yields on Treasuries were so high but also because the bear market was relatively mild as the decline began from relatively low levels of valuation), what's interesting about the above chart is how dependably bonds protected a portfolio during equity bear markets.
With yields having been so low for so long, bonds are suddenly providing some competition with equities at these higher yields levels.
Last week, the yield on the 10 - year Treasury note broke below 1.70 %, the lowest level since the spring of 2013, despite an upgrade in the Federal Reserve's (Fed's) assessment of U.S. economic conditions.
Benchmark Treasury yields fell close to 2 %, their lowest level thus far this year.
Yields moved lower as the yield - to - worst of the S&P / BGCantor Current 10 Year U.S. Treasury Bond Index is now at a 2.49 % which brings it back down to level Read more -LSB-...]
The graph above shows that investors will likely be entering the next equity bear market at the lowest level of yields in more than 50 years.
Even so, with the market's valuations today being cheaper than the two previous times that the S&P 500 traded at these levels — and with the yields on the two primary alternatives, bonds and cash, being very low by comparison — this could be a great time to own companies by investing in th stock market.
Barrons: Investors looking for safety and income have driven utility stocks to pricey levels and low yields.
After touching a low of 2.7 per cent in June, yields on 10 - year indexed bonds now stand at around 3.3 per cent, 15 basis points higher than their level in early May.
As many fixed income investors have discovered in the low interest rate environment of the past several years, opportunities to achieve better levels of income exist, but thoughtful consideration of the potentially higher risks associated with the hunt for better yield is essential.
If we look at the Bloomberg Barclays Global Aggregate Financial Yield to Worst (below) we can see that in 2008 yields of global financials bonds spiked above 8 % and since then, they have gradually retreated to lower levels.
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