Sentences with phrase «lower yields of 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.

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.

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.

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.

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.

«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.

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.

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.

The yield on the Merrill Lynch junk bond composite is up 205bps from last year's low of 5.16 % on June 24 to 7.21 % currently.

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.

The Fed had lowered interest rates down to zero in terms of short - term rates and that pushed bond yields down.

Second, the average time to maturity on U.S. debt is six years, meaning that most of the low - yielding bonds now on the books will be exchanged for more expensive debt over the next decade.

When rates rise, the price of older, lower - yielding bonds fall.

U.S. government bonds saw buying on Tuesday, pulling yields lower, after Secretary of State Rex Tillerson was ousted from the White House.

On a serious note, I was rotating into utilities instead of bonds because of low bond yields.

In order to understand the impact of longer duration and low yields, let's use a real - life example of one of the largest bond funds today and look back at its history.

US election + BREXIT = populist repudiation of era of inequality, globalization, wage deflation; cements BofAML themes of peak Liquidity, Inequality, Globalization + Main St over Wall St. Electoral trends could mark secular low in long - term bond yields (Chart 1).

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 Treasury Auctions

the percentage of return an investor receives based on the amount invested or on the current market value of holdings; it is expressed as an annual percentage rate; yield stated is the yield to worst — the yield if the worst possible bond repayment takes place, reflecting the lower of the yield to maturity or the yield to call based on the previous close

The elder Buffett has shunned bonds in recent years, saying that near record - low yields aren't enough to compensate for the risk of inflation.

Its underlying index selects and weights its bonds by market value, and this method yields a portfolio that aligns well with our benchmark in terms of credit tranches and maturity buckets, with the only notable difference being a slightly lower YTM.

Bonds have never been a part of my portfolio given the historical lower yield when compared with equities.

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.

During times of recession the economy is stimulated with low interest rates and once they get low enough, the yield on bonds and other fixed investments becomes so unattractive that money starts to flow into equities.

The 35 year bull market in bonds most likely ended on July 8, 2016 when the 10 year maturity U.S. Treasury Note yield hit an all - time low of 1.36 %.

Global bonds are vulnerable due to low current yields, depressed term premia1 and the desire of developed - market central banks to unwind unconventional policies.

When savings account rates and yields on government bonds are low, gold suddenly becomes much more attractive to hold as a store of value.

To receive the full benefit of a bond ladder, one needs not only to stay the course for a number of years (so that lower yield and higher yield purchases benefit from cost averaging), but also with a relatively stable amount of capital.

The institutions are not only using the money to meet their own short - term financing needs, they are also borrowing additional money to purchase the bonds of troubled countries and earn the spread between the yields on those bonds and the much lower rate the ECB is charging them for money.

Private holders of Greek bonds are being squeezed too: for every 2 bonds they hold, they'll be offered a new one that is longer - dated and lower - yielding.

I pour the morning cup of mud, schlep out to the stoop to get my paper, and open my WSJ to learn that the yield curve is awfully flat (i.e., the difference between the interest rates of bonds of different maturities is low).

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.

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.

Although they are not as egregiously expensive as 10 - year Swiss government bonds — currently trading at a yield of negative 0.25 % — Canadian bonds are offering a relatively paltry real return, even after adjusting for low inflation.

Advisors should give fixed indexed annuities (FIAs) a serious look because FIAs offer a compelling story in an era of low bond yields, according to Roger G. Ibbotson, one of the most recognizable names in finance.

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.

At that time, the 10 - year Treasury bond had a duration of just 6 years (due to the very high coupon payments and yield - to - maturity available), while the S&P 500 had an extraordinarily low duration of just 16 years.

With rates at historic lows, many investors have used high - dividend stocks, rather than low - yielding bonds, in pursuit of income.

«We are hoping «mom and pop» can do a little bit better than the bond market at a time of historically low yields.»