Jeremy Racicot, CFP and co-founder of The Bay West Group, is putting his clients» fixed - income dollars into corporate bonds, or company debt, because they pay
more than government bonds.
Dividend stocks currently yield
more than government bonds in major markets such as Canada and may remain a valuable source of income even as interest rates slowly begin to rise south of the border.
Dividend stocks currently yield
more than government bonds in major markets such as Canada and may remain a valuable source of income even as interest rates slowly begin to rise south of the border.
Not exact matches
The yield on a 10 - year Canadian
government bond is just 1.7 %, compared to
more than 5 % a decade ago.
Japanese
government bonds skidded in their worst sell - off in
more than three years, despite weaker stocks, accelerating a slide begun in the wake of last Friday's Bank of Japan easing steps that disappointed many investors.
Poland's 10 - year
government bond yield rose 7 basis points to 3.14 percent, its highest level in four weeks, rising
more than U.S. and German yields which it often tracks.
As the Christian Science Monitor noted, that's probably a
more realistic concern for China, which holds $ 1.3 trillion in U.S.
government bonds,
than Washington missing interest or principal payments.
Investment - grade corporates pay about two percentage points
more than short - term
government bonds, and they're less risky
than they used to be.
The simplified explanation for this aberrant investing disaster was a dramatic rise in interest rates during the period: Rates on long - term
government bonds went from 4 % at year - end 1964 to
more than 15 % in 1981.
But the bank has taken
more extreme measures, such as ramping up purchases to
more than 40 percent of the market overall and saying it would control the yield curve by keeping the 10 - year
government bond yield around 0 percent.
[2] Indeed, to my mind, the value of these initiatives has been less the «integration» aspect
than the progress made in enabling eight local
bond markets to function
more effectively for foreign and domestic investors and, not least, for the
governments and other borrowers of those countries.
A well - functioning local - currency
bond market allows a
government much
more economic policy flexibility
than can be experienced when tied to foreign currency borrowing.
European
government bond and U.S. 10 - year Treasury yields are trading at their highest levels in
more than two months and the U.S. 30 - year Treasury
bond yield reached a high for the year on Tuesday.
For example, the Bank of Japan is currently targeting the purchase of
more than $ 700 billion of Japanese
government bonds per year, or approximately 15 % of the country's gross domestic product (GDP).
It helps the economy
more, for example, if they put the money toward productive new companies
than if they invest in
government bonds.
China is also the biggest creditor of the United States: It owns
more US
government bonds than any other country.
«I expect protracted negotiations as the international organizations will ask for
more than amending the central bank law,» Daniel Bebesy, who helps oversee $ 1.5 billion mostly in Hungarian
government bonds at Budapest Fund Management, said by phone today.
U.S. stocks plunged on Tuesday, with the Dow Jones Industrial Average sinking
more than 400 points as rising
government bond yields drove investors into risk - off mode...
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.
The fund I think you might for inflation protection is the M&G UK Inflation - linked Corporate
Bond Fund (actually these days it seems to have
more government paper
than corporates, despite the name).
In just one quarter the S&P 500 returned
more than a seven - year U.S.
government bond would have returned over its entire lifetime.
Currently, the U.S. Treasury Department is taking far
more of it
than it should, and mortgage
bonds are being propped up artificially with another $ 1 trillion of
government guaranteed paper being issued in 2009.
It's also interesting to examine the changing significance and dynamics of the European
bond market in general, which has almost doubled in size since 2005 to
more than $ 10 trillion today, including
government, investment - grade corporate debt and high yield.
Municipalities have
more risk
than U.S.
government bonds of similar duration and credit quality.
More than 70 % of the
bonds in developed - market
government bond indexes today have yields of 1 % or lower, as the chart below shows.
For
more than a week, the US dollar has risen sharply as US
government bond yields have surged — with the benchmark 10 - Year Treasury yield briefly...
The equity market has become a
more reliable generator of the reoccurring cash flows that the Boomers need
than the
government bond market has.»
Just as well, since
more than a quarter of JPMorgan's Global
Government Bond Index, or $ 6.4 trillion worth of debt, was trading with a negative yield last week.
The European Central Bank has spent
more than 1 trillion euros since launching its
government bond - buying programme 18 months ago.
Among US
government bond ETFs, short - term
bond ETFs accumulated
more than $ 6 billion in flows, while long - term
bond ETFs saw $ 0.3 billion in outflows amid changes in volatility and shifting interest rate expectations (see US
government bond ETF flow).
This second trend borne from ultra-loose monetary policy has forced many investors to seek out higher - yielding alternatives including dividend stocks, which, on average, yield
more than 10 - year
government bonds in most major developed markets, including Canada (see chart below).
Improper public to private communication might seem trivial in an environment as open as
bond markets but the truth is that private actors are poorly informed and, in
more cases
than expected, react to media reports rather
than information from the Spanish
government or other official sources.
Remember, it's not a bank loan type of relationship the US
government has with China, it's a
bond investor type of relationship, and there are a lot
more investors
than just China.
«Getting on the housing ladder» may sound like an innocuous phrase, but it in fact refers to accessing the most desirable financial asset, capable of increasing our paper wealth many times
more than moving job or investing in the stock market or
government bonds.
Gold is
more volatile
than U.S.
Government Bonds.
All this goes against the grain of the way that financing U.S. state and local
government infrastructure worked for
more than a century: through municipal
bonds.
The
government had opted for the single - purpose the Energy Sector Levy Act (ESLA)
Bond to mobilise not
more than GH cents 6 billion.
Their
Bond is
more low - rent thug
than suave cosmopolitan —
more government assassin
than super spy.
«In 2008 alone, state and local
governments spent
more than $ 66 billion to improve the overall quality of school facilities, and another $ 400 billion is owed in school improvement and construction
bond debt.»
Nationwide, state and local
governments owe
more for retirement benefits, when liabilities are conservatively valued,
than for
bonded debt issued for capital purposes.
The main takeaway from the $ 190 billion annual spending plan — $ 132 billion in day - to - day general fund spending and the rest in special fund and
bond fund spending — is that it sets aside
more money
than ever for the state's rainy - day fund instead of expanding a range of
government services.
Bonds have a maturity date, and if you stay with AAA bonds, you have an excellent chance of getting all your money back + interest on that date, regardless of what bonds do in the meantime; if you only get government bonds, you are guaranteed to get your money back by full tax power of government — more secure than
Bonds have a maturity date, and if you stay with AAA
bonds, you have an excellent chance of getting all your money back + interest on that date, regardless of what bonds do in the meantime; if you only get government bonds, you are guaranteed to get your money back by full tax power of government — more secure than
bonds, you have an excellent chance of getting all your money back + interest on that date, regardless of what
bonds do in the meantime; if you only get government bonds, you are guaranteed to get your money back by full tax power of government — more secure than
bonds do in the meantime; if you only get
government bonds, you are guaranteed to get your money back by full tax power of government — more secure than
bonds, you are guaranteed to get your money back by full tax power of
government —
more secure
than a CD.
Trade: Sell U.S.
government bonds when credit appetite is high, as signaled by the CAI being
more than one standard deviation above its 50 - day moving average, and buy when it is low, or
more than one standard deviation below its 50 - day moving average.
The last time I checked, they were
more than a full 2 % over
Government of Canada
bond yields.
Since the late 1990s, 10 - year
Government of Canada
bonds have yielded about 1 %
more than five - year GICs on average.
What's
more, GICs pay higher yields
than government bonds: today you can build a five - year ladder with an average yield over 2 %, with no credit risk and no chance of a capital loss.
I remember the early 1980s, when 10 - year
government bonds yielded
more than 16 %.
Strong demand for broad market and US
government ETFs contributed to a
more than $ 15 billion gain in net flows (see
Bond ETFs keep momentum going).
Lower Taxes — The U.S.
government taxes most stock dividends at a lower rate
than more ordinary income from cash, certificates of deposit, or
bond interest payments.
Treasury
bond: A U.S.
government security maturing in
more than ten years.