Sentences with phrase «market yields increase»

They fall in price, imposing losses on investors, until their market yields increase to a value that's competitive with the new higher rates.

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.
Although there may not be a bond bubble, with investors starved for yield, Gundlach predicts a potential bubble could form in credit risk as investors increase their leverage on riskier debt securities like junk bonds and emerging market debt.
For instance, in the travel and hospitality industry, predictive analytics techniques have been used for acquiring customers in a cost - effective manner, for fine - tuning marketing offers that increase repeat - usage, and for increasing revenue through effective cross selling and better yield management.
They have also increased the cost of new fixed - rate mortgages as yields on the bond market have moved higher.
Nickel set for biggest weekly increase since April 2009 Dow Jones Industrial Average reaches record on Thursday Gold heading for worst week in a month Largest increase in 30 - year Treasury yields since 2009 Italian bonds are poised for worst three - week selloff since 2011 Emerging - market stocks set for biggest three - day slide since August 2015 Mexico's peso plunges 12 percent in three daysCommodities
Also, bills have typically traded below other money market rates during tightening cycles, as they do now; periods where bills trade at or above other rates have been the exception and not the rule.36 Thus, the smaller increase in bill yields than in rates on other term instruments is not surprising, and I do not read it as undermining the general conclusion that the policy rate increase was effective in firming money market conditions.37
Even if we don't see outsized price increases in commodities, from a total return perspective, commodity returns will benefit from a change to positive roll yields based on the reshaping and structuring of the fundamental market in commodities.
The losses in major Asian stock markets on Wednesday morning tracked losses on Wall Street overnight, and with increasing risks seen in tech shares, weak copper prices, and high US Treasury yields.
Recent increases in inflation expectations have triggered repricing in the fixed - income markets, but we expect inflation and bond yields to trend only modestly higher.
Speaking of the Treasury, they've got to pretty massively increase the supply of bonds to the market to fund the deficits induced by the tax cut and spending bill, which puts downward pressure on bond prices and upward pressure on yields.
Recent increases in bond yields have reverberated across equity markets.
Shorter - term yields in Canada are also forecast to increase in 2014 as a strengthening in economic growth, tightening labour market conditions and accelerating wage growth fuel a steady, albeit slow, increase in inflation.
Meanwhile, with 10 - year Treasury yields no longer significantly negative in real terms, and increasing divergences in market action within the commodity space, we are rapidly cutting our exposure to commodities and oil.
Liquidity risk High yield bonds that may have been easy to buy or sell when market conditions were calm can suddenly become very difficult to sell when volatility increases.
Valuations remain offensive, and market action continues to suggest increasing risk - aversion and an exhaustion of yield - seeking speculation.
An unusually high yield relative to similar bonds is often an indication that the market is anticipating a downgrade or perceives that bond to have more risk than the others and therefore has traded the bond's price down (thereby increasing its yield).
Rates for home loans spiked along with a surge in Treasury yields as Federal Reserve officials guided market expectations toward an interest rate increase next week, mortgage provider Freddie Mac said Thursday.
While insurance sector M&A has cooled off after a bumper 2015 due to what many players see as over-inflated valuations, soft insurance markets, increasing competition, higher claims and weak investment yields are putting profitability under pressure, meaning that M&A remains a possible source of growth according to Credit Suisse.
Some worry interest rate / bond yield increases will kill the stock bull market, but that possibility remains some ways off in our estimation.
I quote former Cleveland Fed president, Jerry Jordan, on point: «Yields of market - determined interest rates subsequently fell and remain below the levels that prevailed before the increase in administered rates» (Jordan 2016: 26).
In part, this increase might be a mechanical response of nominal yields to developments in world bond markets, rather than signalling a lasting change in the financial market's view of the inflation outlook in Australia.
Currently, BBB - rated bonds are equal to 45 % of the entire outstanding high - yield market, which has increased from 30 % a decade ago.3 Since BBB is the lowest investment - grade bond rating, the risk is that many poor credits will fall, like angels, from the investment - grade into the high - yield universe.
Underlying high - yield volatility has increased slightly during the past five - plus years as ETFs have experienced rapid growth and their influence has increased in the market.
Our model indicates that going forward, long - term yields will likely be subject to three upward pressures: (1) Our forecasted increase in inflation will boost nominal GDP growth; (2) As forward guidance is replaced by a data - dependent monetary tightening, volatility in short rates will increase; and (3) As the impact of QE on the Treasury market fades, long - term yields will trend back to their historical link with nominal GDP growth.
While downside risks to these forecasts remain, recent data in the United States have been slightly more encouraging and, in response, equity markets and bond yields have recorded solid increases (see the chapter on «International and Foreign Exchange Markets&rmarkets and bond yields have recorded solid increases (see the chapter on «International and Foreign Exchange Markets&rMarkets»).
The reduction reflects improvements in economic prospects in emerging markets, and increased investor interest in higher - yielding debt, given the relatively low yields available in industrial countries.
Moreover, by keeping short - run interest rates near zero for more than seven years, paying interest on excess reserves (IOER) above the effective fed funds rate, and convincing markets that rates would stay low for a long time (forward guidance), the Fed has increased the reach for yield and appears more interested in priming Wall Street than in letting markets set interest rates and allocate credit.
The Bank of Japan expanded monetary stimulus on July 29 through a modest increase in purchases of exchange - traded funds (ETF), yielding to pressure from the government and financial markets for bolder action to spur growth and accelerate inflation towards its 2 percent target.
The Third World countries which still had access to international financial markets and which could issue public bonds in London or New York, had to increase the yield payments they guaranteed to purchasers of their bonds.
California avocado growers must increase yield, including fruit size, and / or reduce production costs to remain competitive in the US market, which now receives fruit from Mexico, Chile, New Zealand, Dominican Republic and an increasing number of other countries (http://www.ers.usda.gov/Data/Fruit VegPhyto / Data / fr - avocados.
Every day more businesses like yours are searching for ways to increase yields, decrease expenses, and market smarter.
However, RA boasts that certification for coffee farms increases income, yield, opens new markets, and provides other economic benefits.
But now the increasing demand in the market for both the green and dried article is attracting the attention of farmers who have an eye for crops that do not fail and that yield good returns.
Despite biotech industry promises, there is no evidence that any of the GMOs currently on the market offer increased yield, drought tolerance, or enhanced nutrition.
About Jennifer Walden Weprin Walden Weprin hails from the Louis Armstrong House Museum in Corona as Director of Marketing & External Affairs since 2011, where she designed and implemented a marketing and programming strategy that yielded a 21 percent increase in museum Marketing & External Affairs since 2011, where she designed and implemented a marketing and programming strategy that yielded a 21 percent increase in museum marketing and programming strategy that yielded a 21 percent increase in museum visitors.
Breeders appreciate that increased yield is the main driver of the market for new varieties.
Over the period under review, the yield of the breeds of winter wheat and spring barley appearing in the market for the first time increased by around one per cent per year.
For those regions, union into larger economic domains, thereby increasing the diversity of goods and services (and of the economic web itself) as well as the aggregate market, may help yield supracritical growth.
If interest rates increase, the investor will be stuck with an instrument yielding below market rates.
In today's markets, the same rate increase could potentially offset any pickup in yield, resulting in a loss (FIGURE 4).
While Apple's (AAPL) current yield of 2.1 % isn't spectacular, its latest dividend increase of 24 % means that the stock is now offering some of the fastest dividend growth on the market.
And as market yields decrease, the duration increases, and vice versa.
The 10 - year Treasury yield also responded by increasing from its lows of 1.46 percent, moving up to 1.667 percent at markets close.
In a low interest rate environment, companies that have increasing dividends or offer high dividend yields look attractive to income - seeking market participants.
Learn about the major risks for the bond market in 2016; interest rate increases, high - yield bond volatility and a flatter yield curve may be issues.
High - growth common stocks — expected annual increase in market value = 10 %; expected dividend yield = 0.
In the currency markets today, the U.S. dollar lost ground to high - yielding currencies like the Australian dollar, and the Japanese yen lost more ground after lawmakers in the U.S. came up with a last - minute deal to avoid the «fiscal cliff», this worked to increase demand for riskier currencies.
You may not be able to enjoy a higher yield if the market conditions improve and rates increase.
Dividends can help combat volatility — that's because dividend yield increases as the market price of a stock falls, making the stock more attractive
a b c d e f g h i j k l m n o p q r s t u v w x y z