Sentences with phrase «lower yield securities»

«I've held the contention that as you see slower growth (the banks are) going to have to reposition your balance sheet into lower yield securities.

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

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

First, the chief investment officer called to ask what I was doing buying such low yielding securities.

If an issuer exercises these provisions in a declining interest rate market, the Fund would have to replace the security with a lower yielding security resulting in a decreased return for investors.

If an issuer redeems its debt securities prior to final maturity, a fund may have to replace those securities with lower yielding securities, which could result in a lower return.

Not exact matches

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.

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

Therefore, the price risk of fixed income securities is low, and in turn the incremental yield over cash is worth the risk of an extra 10 % allocation.

While it's better to invest than keep money under a mattress, buying risk free securities, such as guaranteed income certificates or low - yielding government bonds, could actually be riskier than purchasing higher returning products, says Ted Rechtshaffen, president and CEO of Toronto's TriDelta Financial Partners.

debt obligations of the U.S. government that are issued at various intervals and with various maturities; revenue from these bonds is used to raise capital and / or refund outstanding debt; since Treasury securities are backed by the full faith and credit of the U.S. government, they are generally considered to be free from credit risk and thus typically carry lower yields than other securities; the interest paid by Treasuries is exempt from state and local tax, but is subject to federal taxes and may be subject to the federal Alternative Minimum Tax (AMT); U.S. Treasury securities include Treasury bills, Treasury notes, Treasury bonds, zero - coupon bonds, Treasury Inflation Protected Securities (TIPS), and Treasursecurities are backed by the full faith and credit of the U.S. government, they are generally considered to be free from credit risk and thus typically carry lower yields than other securities; the interest paid by Treasuries is exempt from state and local tax, but is subject to federal taxes and may be subject to the federal Alternative Minimum Tax (AMT); U.S. Treasury securities include Treasury bills, Treasury notes, Treasury bonds, zero - coupon bonds, Treasury Inflation Protected Securities (TIPS), and Treasursecurities; the interest paid by Treasuries is exempt from state and local tax, but is subject to federal taxes and may be subject to the federal Alternative Minimum Tax (AMT); U.S. Treasury securities include Treasury bills, Treasury notes, Treasury bonds, zero - coupon bonds, Treasury Inflation Protected Securities (TIPS), and Treasursecurities include Treasury bills, Treasury notes, Treasury bonds, zero - coupon bonds, Treasury Inflation Protected Securities (TIPS), and TreasurSecurities (TIPS), and Treasury Auctions

If you plan to hold to maturity you have to be willing to forego the possibility of higher yields assuming rates rise, but then again you don't get dinged on the lower price of the security.

High - yield funds may invest in lower - quality securities, which generally offer higher yields, but also carry more risk.

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.

Lower yields Treasury securities typically pay less interest than other securities in exchange for lower default or credit Lower yields Treasury securities typically pay less interest than other securities in exchange for lower default or credit lower default or credit risk.

Although the bond market is also volatile, lower - quality debt securities, including leveraged loans, generally offer higher yields compared with investment - grade securities, but also involve greater risk of default or price changes.

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.

• Lower - quality debt securities generally offer higher yields but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer.

Investing in higher - yielding, lower - rated, floating - rate loans and debt securities involves greater risk of default, which could result in loss of principal — a risk that may be heightened in a slowing economy.

Some home improvements, like a new roof or security system, may also yield lower insurance premiums.

As yield - starved investors looked for relatively safe alternatives to low - yielding Treasury securities, they turned to mortgage securities, which had to - date never experienced major losses.

Japan's recession left little demand at home, so its banks developed the carry trade: lending at a low interest rate to arbitrageurs to buy higher - yielding securities.

The yield required for a low - risk bond such as a Treasury security will be lower than the yield required for a high - risk bond such as a junk bond.

In recent months, the yield on US corporate bonds, especially investment - grade securities, is a little more than 100 basis points compared to the yield on government debt, dropping within striking distance of the lows seen post the 2008 financial crisis.

Lower yields - Treasury securities typically pay less interest than other securities in exchange for lower default or credit Lower yields - Treasury securities typically pay less interest than other securities in exchange for lower default or credit lower default or credit risk.

Therefore, the investment proposition for low - yielding sovereign and other fixed - income securities is highly dubious in our opinion, another bubble waiting to implode.

The current low interest rate environment globally has pushed the majority of fixed income securities to record - low yield levels across the board.

However, yields on longer - term securities could be trending down sometimes when market interest rates are set to get lower for a foreseeable future to accommodate ongoing weak economic activities.

With lower demand for shorter - term securities, their yields actually go up, giving rise to an inverted yield curve when yields on longer - term securities have come down at the same time.

When the economy is heading to a recession, knowing interest rates are to trend lower, investors are more willing to invest in longer - term securities immediately to lock in current higher yields.

This, in turn, increases the demand for longer - term securities, boosting their prices and further lowering their yields.

The Oakmark Equity and Income Fund invests in medium - and lower - quality debt securities that have higher yield potential but present greater investment and credit risk than higher - quality securities, which may result in greater share price volatility.

As a Defined Maturity fund approaches its liquidation date, the fund's securities will mature and the fund may reinvest the proceeds in money market securities with lower yields than the securities previously held by the fund.

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.

Quantitative easing is a process via which the Fed purchases mortgage - backed securities (MBS) and other bonds in the open market in order to lower bonds yields and everyday mortgage rates.

This is not unlike the dilemma facing many retirees and other individual investors: holding ultra-safe interest - bearing investments is wise past a certain age; yet when yields are lower than the inflation rate, this strategy erodes buying power and undermines long - term financial security.

When the yields on the securities in which money market mutual funds invest are quite low, the yields that the funds are passing along to their shareholders are also quite low.

High yields reflect the higher credit risk associated with these lower - rated securities and, in some cases, the lower market prices for these instruments.

Yields available on high - quality securities continue to remain low but are somewhat offset by increases in average investment balances.

One of the good things about global uncertainty is that investors seek the security of bonds, thereby lowering bond yields.

Atomic clocks of the previous generation, with significantly lower precision, are currently being used in applications including satellite navigation systems, high - capacity wireless networks (wi - fi), ensuring the security of bank communications, and also taking measurements of the Earth's gravitational field, yielding insight into its internal geological structure.

As a defined maturity fund approaches its liquidation date, the fund's securities will mature and the fund may reinvest the proceeds in money market securities with lower yields than the securities previously held by the fund.

One of the oldest tricks in the game is to offer a high current yield, where the yield can get curtailed through early prepayment (typically in low interest rate environments), or some negative event that forces the security to change its form, such as when a stock price falls with reverse convertibles.

I once was a mortgage bond manager, and I bought senior securities because the yield spreads on the lower - rated securities were so small.

We can (and have) capitalized on a wide range of opportunities in the bond market, including in higher and lower quality bonds, strategic and high - yield bonds, floating - rate securities and even total - return funds, which aren't fully invested in bonds.

Remember that these bouts of QE, LTRO operations, and other interventions have essentially had their effect by squeezing interest rates to levels that are so low that investors feel forced to seek higher risk securities in a search for yield.

The Flexible Income and High Yield Funds may invest in lower - rated and non-rated securities presents a greater risk of loss to principal and interest than higher - rated securities.

Lower ‐ quality fixed income securities, known as «high yield» or «junk» bonds, present greater risk than bonds of higher quality, including an increased risk of default.

If a discount does occur, investors can profit from the discounted price and also gain yield benefits from a lower price on income paying securities.

Although the bond market is also volatile, lower - quality debt securities including leveraged loans generally offer higher yields compared to investment grade securities, but also involve greater risk of default or price changes.