Sentences with phrase «markets reaching for yield»

Not exact matches

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.

Persistence will remain a key feature of markets going forward, as will the reach for yield, we believe.

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

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.

In addition, terms and conditions in the leveraged - loan market, which provides credit to lower - rated companies, have eased significantly, reportedly as a result of a «reach for yield» in the face of persistently low interest rates.

Market Killer When rates are low, investors reach for yield beyond what seems logical, according to a study outlined in The Wall Street Journal, which concluded that if rates rise and investors revert to less risky portfolios, equities could «be in for a big drop.»

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.

BlackRock has observed that a convergence of market and behavioral dynamics has caused many investors to operate at the extremes as they seek income: They are taking undue risk in a reach for yield and at the same time hoarding cash.

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.

Once adjustments are made to reach for yield, we get into a market timing decision as to when to get out of those instruments and into something with less risk and greater fixed - income return.

Flash forward to today: With savings accounts, money - market accounts and the like paying less than 0.10 % a year on average, the impulse to reach for extra yield is still strong.

The comment that «rates can't remain this low for long,» has been heard steadily in fixed income markets for the last 20 years as yields have continued to reach new lows.

Frankly, I don't think they matter a damn: Take note of where bond yields have actually ranged in the past few years — now if they manage to reach those levels again, why should that suddenly spell disaster for the markets?

The yield on the 10 - year Treasury note — a bedrock of global financial markets — has been rising since tax legislation was proposed in the fall of 2017, and the yield reached a four - year high of 2.85 % on the day the jobs report was released.6 — 7 Although the Tax Cuts and Jobs Act was generally welcomed on Wall Street, bond traders have been concerned that increased Treasury sales to pay for the $ 1.5 trillion tax cuts will erode bond prices.

It's cheap (taking the midpoint of its guidance it's on less than 5.5 x earnings), it has got a strong balance sheet (net debt / EBITDA was 0.8 x at end - 2010), it has a stable business model (it is the biggest distributor of fruit and vegetables in Europe, with a reach that enables it to supply multiples across different countries), it has a decent dividend yield (circa 4.5 %) and it is spitting out cash (free cash flow for the twelve months ended 30 June 2011 amounted to $ 29.0 m — that's nearly a quarter of the group's market cap).