Sentences with phrase «low yielding bonds»

In other words, low yielding bonds become a worse and worse hedge as the yields decline.

The concern here is that ultra low yielding bonds can't decline sustainably below 0 % and are therefore unlikely to provide much downside protection in the future whereas environments like the 2008 financial crisis and before offered investors far more protection because yields were higher.

In essence, as long as the European Central Bank (ECB) and the Bank of Japan (BOJ) collectively purchase $ 150 billions of their own low yielding bonds every month — 0.10 % on JGBs and 0.45 % on German Bunds respectively — money then flows into the more attractive 10 - Year U.S. Treasury yields.

I am looking forward to exchanging some low yielding bonds for cheap stocks should the opportunity arise.

Lower yielding bonds are safer, but the return might not be enough to grow your money over time.

However, most investors don't invest 100 % in stocks, so including exposure to lower yielding bonds would have dragged down returns.

Don't they face the same problems that they won't be able to generate as they roll their portfolios into lower yielding bonds going forward (since rates have come down so much)?

Investors are understandably reallocating their portfolios from lower yielding bonds to higher yielding equities.

Besides, as this research shows, even at today's low yields bonds remain an effective way to hedge equity risks and diversify your portfolio.

Considering the low yield bond investors are earning during sunnier days for equity - only investors, when the storm comes, that outcome would be particularly painful.

Combining the call premium with the dividend yield is a good way to substitute high stock yield for low yield bonds.

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.

The bond purchases, the third round of quantitative easing embarked upon by the Fed in the wake of the 2008 financial collapse and subsequent recession, have kept interest rates and bond yields low.

For one thing, those 10 - year Canada bonds are yielding just 1.14 % and could lose value should interest rates rebound from their recent lows, as many market - watchers expect.

In a client note on Thursday titled «Yanking down the yields,» the interest - rates strategist projected that bond yields would be much lower than the markets expected because central banks including the Federal Reserve were reluctant to raise interest rates.

Much of the shift lower in our yield forecasts derives from the view that the ECB [European Central Bank] will continue to buy bonds in its QE [Quantitative Easing] program.

Since then, bond yields have been pressing lower.

The yield on the benchmark 10 - year Treasury note was lower at around 2.998 percent at 1:07 p.m. ET, while the yield on the 30 - year Treasury bond was lower at 3.18 percent.

He also lowered projections for European bond yields.

While investors will have to find stocks with higher yields, pay more for them and take on more risk in bonds, the biggest change in a permanently low - rate world is that people will need to set aside more of every paycheque if they want to keep the same goal for retirement income.

In other words, because investors can not generate a sufficient return from low - yielding bonds, they turn to stocks as their only alternative.

Low sovereign bond yields have long helped the government finance its debt, thus, higher yields would undermine the sustainability of its fiscal position, analysts said.

In the short - term, however, this increased leverage may actually be bullish for junk bonds, corporate bonds, emerging market debt and mortgage - backed securities as it brings higher prices and lower yields, he said.

The yield on the benchmark 10 - year Treasury notes, which moves inversely to price, was lower at around 2.43 percent, while the yield on the 30 - year Treasury bond was also lower at 3.046 percent.

With the Fed actively buying securities on the open market, the additional demand means bond issuers can promise lower yields and still attract investment.

The yield on the benchmark 10 - year Treasury notes sat slightly lower at 2.221 while the yield on the 30 - year Treasury bond slipped to 2.797 percent.

Following the Journal's report, bonds yields ticked lower.

Portugal has been profiting from lower bond yields, but as the ECB is expected to gradually lower its government bonds purchases, yields and spreads are expected to rise, which could hamper the improvement in government finances.

The Fed's low interest rate policy has driven more and more money into bond funds as investors search for higher yields.

«Valuations are at extremely attractive levels considering bond yields and low inflation expectations.

Bond yields were a little lower, reflecting the divergent paths for benchmark interest rates in the U.S. and Canada.

Last week, for example, TD Bank sold US$ 3 - billion worth of bonds covered by residential mortgages yielding 1.571 %, or quite a bit lower than 2.99 %.

Those figures come in an atmosphere of low interest rates, which depress bond yields, and a relatively flat S&P 500 over the 12 months ending June.

I noted a week ago that Bernanke had essentially eased monetary policy by spurring a loosening of financial conditions via higher stock prices, lower bond yields, tighter credit spreads, and a weakening of the U.S. dollar.

While Fink is right to point out that low interest rates are putting a large burden on those of us trying to save retirement, he does not address the fact that central banks aren't primarily responsible for the fact that bonds of all types are yielding less today than we're used to.

Because the central bank's purchases represent increased demand, it tends to push up government bond prices, thus lowering yields.

Following the report, the yield on the benchmark 10 - year Treasury note was lower at around 2.959 percent at 3:46 p.m. ET, while the yield on the 30 - year Treasury bond was lower at 3.128 percent.

«But due to the low coupons prevailing, even a gradual rise in yields will result in negative returns on a wide range of government bonds over the coming quarters.»

The company's lone outstanding junk bond, worth $ 1.8 billion and maturing in 2025, briefly dropped two points to as low as 85 cents on the dollar for a yield of around 8 percent on Monday, according to MarketAxess data.

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.

Germany's benchmark 10 - year bond yield was up almost 2 bps at 0.58 percent in early trade, above a one - week low of 0.56 percent hit on Friday.

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.

Investors were watching the report closely after fears of surging inflation helped send the stock market lower and bond yields higher.

Also, Ablin added a large portion of the recent rally involved a rotation from bonds into stocks as low interest rates forced investors to seek yield in the stock market.

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.

But he warned that could be changing: «There's a very low hurdle for that surprise because bond market yields are so low in the front end of the curve.

Historically speaking, when the economy has gotten stronger, the price of Treasury bonds go lower and the yield goes higher.

A negative outcome in the stress tests could send equities lower and Greek bond yields higher.

Although it is fair to say that the recent uptick in volatility has in part reduced earlier concerns about prolonged low volatility and associated reach - for - yield behavior, it has placed added focus on the resilience of liquidity, particularly in markets, such as the market for corporate bonds, that may be prone to gapping between liquidity demand and supply in stressed conditions.

Moreover, what concerns Mr. Buffett are the poor prospects for long - term bonds, especially given their current low yields.