Sentences with phrase «low yielding assets»

USD JPY Tumbles as Return of Risk Aversion Rocks the Markets The USD JPY reversed its four day rally as traders sought safety in lower yielding assets following an announcement by President Obama to curb trading at financial institutions.

Not exact matches

But purchasing stable, dividend - yielding equities will go a longer way than owning low - paying fixed - income assets.

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.

With stocks trading near all - time highs and bond yields still relatively low, some investors have turned to alternative asset classes.

In an era of low interest rates, yield traps play into the hands of financial cheats who can cook the books by inventing revenue, altering expenses and creating assets.

QE could be described as a tax on the private sector since it removes high yielding safe assets from the private sector and swaps them with low yielding less safe assets.

Treasury prices cut earlier losses on Monday, pushing yields slightly lower, after stocks fell sharply, pushing investors into haven assets like government bonds.

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.

Monetary easing only provokes yield - seeking speculation when low - interest money is viewed as an inferior asset.

Persistently low official inflation rates in recent years depressed bond yields along with risk premiums on all financial assets.

At a time when demand for income generating assets is at an all - time high, the yields on income generating assets are at, or near, all - time lows.

Biofuels don't help, but biofuels are the result of high oil prices, which are the result of poor incentives to bring oil up (both because of low yielding U.S. assets and political resentment over U.S. foreign policy).

This very low market volatility can lead investors to take on more risk, and in a period of still relatively low interest rates, to «reach for yield» — that is, buy riskier assets than one would otherwise, in order to achieve a desired profit or savings goal.

A long period of low rates has encouraged investors to assume greater risk in the stretch for yield, inflating asset prices.

But this masks the reality that equities — and by extension other risk assets — still look attractive taking into account that bond yields are likely to stay historically low.

For the most part, investors cite the market's four - year climb off its 2009 lows and the Dow's record closing to the Federal Reserve's aggressive and unprecedented monetary stimulus measures, which have helped push equities higher by driving down yields in safe - haven assets.

But long - term government bond yields fell to record lows for many euro area countries after a speech by ECB President Draghi on 21 November, which stressed that the ECB will do what is required to raise inflation and inflation expectation by adjusting the size, pace and composition of asset purchases, if the currently announced policies prove to be insufficient.

Yields on high - yield corporate bonds narrowed (centre panel) and record low government bond yields pushed up valuations of risky assets (right - hand pYields on high - yield corporate bonds narrowed (centre panel) and record low government bond yields pushed up valuations of risky assets (right - hand pyields pushed up valuations of risky assets (right - hand panel).

Indeed, Finke said that he's most proud of a series of articles that he wrote last year along with American College professor Wade Pfau and David Blanchett, head of retirement research at Morningstar, that looked at the impact of low asset yields on the sustainability of retirement portfolios.

The Fed's accommodative monetary policy after the recession helped goose stock prices, in part by lowering yields on safer assets like Treasury bonds.

In addition, sovereign wealth funds — which generally diversify their portfolios to include a small portion of alternate assets such as gold, private equity and real estate — are likely to raise their allocations following the low yield in government bonds over the last couple of years.

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.»

Higher oil prices would reinforce current market trends based on reflation: rising long - term bond yields and a shift out of perceived safer assets — bond proxies and low - volatility stocks — and into cyclical assets such as EM.

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.

This is evident in a number of developments, including: increased demand for higher - risk assets; the increase in «carry trades» — a form of gearing where funds are borrowed short - term at low interest rates and invested in higher - yielding assets, often in other countries; growth in alternative investment vehicles such as hedge funds; and growth in alternative investment strategies such as selling embedded options (see Box A).

It was also intended to frustrate holders of conservative, low - yielding assets, pushing them to seek higher returns in riskier investments and thereby fund job - generating business activity — and it seems to be working.

Today's low - to - negative interest rate world has sent investors searching far flung corners of the market for yield, driving flows into a range of once obscure, high - yielding asset classes.

They then compare this to the yield you could get from the lowest risk asset — a government bond.

An asset class that once boasted a yield of 10 % now pays about 4 % — a huge move for a safe, low volatility investment.

Most value stocks have low price - to - earnings (P / E) ratios, high dividend yields, low price - to - cash - flow ratios, and stocks with a market value (generally, the stock price) that is lower than the book value (how much the company's net assets are worth).

A potential surprise: A rally in risk assets prompted by investors shifting out of cash and low - yielding assets in search of higher returns.

Therefore, one can see why AAL is intent on shrinking its asset base to improve its balance sheet — low yielding properties act as a drag on company performance.

If you look at Page 3 of C's Y - 9 performance report, you'll see that C's yield on loans is 2 % higher than the large bank peer group, yet the bank has a spread on earning assets half a point lower than other large banks.

«The multi-year massive expansion of the Fed's balance sheet has had a recognized powerful effect on asset markets — lowering yields and flattening the yield curve.

So while low and negative interest rates across the globe has inspired flows into stocks, emerging market bonds and corporate credit in search of higher yields, keep in mind the high correlations of these assets to oil prices and the advantages of holding actual diversifiers in your portfolio to smooth the ride.

You're essentially defeasing a portion of your liability with a lower amount of assets than the value of that liability, and of course, the potential for higher yield comes with greater risk.

Although the yield may jump around a bit (12.5 % at present) and is contingent on the timing of asset sales, we expect investors to receive a hefty high single - digit to low double - digit return for quite some time.

There is good rationale as to why the bond markets are in the position they are today; compressed spreads are the result of low rates coupled with strong demand out pacing supply for yield assets.

While global equity markets as of the end of December 2014 still offered great value in our opinion (especially compared to generally expensive, low - yielding fixed income assets), that value is becoming increasingly selective.

The past several years have featured little more than a gigantic asset swap, the short description being that massive volumes of government debt have been swapped by central banks for massive volumes of idle bank reserves, while massive volumes of low - yielding, covenant - lite debt have been issued into the hands of yield - seeking investors, in order to retire massive volumes of corporate equities at elevated valuations through buybacks.

If the yields on these assets with near - guaranteed returns remain low, then buying in precious metals should remain fairly steady, if not strong.

Structurally lower yields underpin our positive view on equities and other risk assets, and we favor equities overall to credit.

Less than one - third of pension - fund assets typically are parked in safer, lower - yielding government bonds and other fixed - income investments.

The reason comes back to yield: Although current yields are low by historical standards, they look more compelling in the context of an ever shrinking pool of high yielding assets.

In the U.S. those further benefits crucially flowed through the wealth effect channel: substitution of lower risk assets such as bank deposits and Treasuries for high yield bonds and equities led to price increases in those risky assets.

With 10 - year Treasuries yielding less than 2 % today (from Bloomberg data), investors unwilling to accept such low income may need to direct their investments across riskier assets in the search for yield.

A darling asset class of this bull market has been U.S. high yield debt, as many searching for income in a low - rate world have turned to these higher - yielding bonds.

Investors and fund managers search for yield, extend maturities, reach for lower credit quality and shift assets from short term floating rate money market funds to bonds, bond funds and similar investments.

And here is the second try: Gross margins as a ratio of Assets over 13 %, free cash flow yield over 5 %, Long - term debt as a ratio of free cash flow greater than five, less than 20 % above the 52 - week low.

«Much like the laws of physics change from the world of Newtonian large objects to the world of quantum Einsteinian dynamics, so too might low interest rates at the zero - bound reorient previously held models that justified the stimulative effects of lower and lower yields on asset prices and the real economy.»