Sentences with phrase «negative on our bond markets»

With RPI inflation at 5.5 % - the figure was published yesterday - and our gilt rate at 2.37 %, the real rate of return is negative on our bond markets and that is a very fragile situation for the markets.

Not exact matches

We all know that the massive reduction in dealer inventories and the cost of capital has had a huge negative impact on liquidity in the corporate bond market.

Think about it: how much will a bond with a NEGATIVE yield be worth on the day that investors lose confidence in their central bankers» abilities to control the weather financial markets?

So far, the municipal bond market has seen only a modest reaction to the recent negative credit watch being placed on the ratings of several bond insurers.

A few more months like that in the bond market and we will start hearing more talk about negative yields on U.S. bonds.

Companies are loath to cut dividends, given the negative signal that it sends to the market, while coupons on bonds are one of the first claims on a company's income, ranking above other demands.

More on MoneyWatch: Active Bond Managers Fare No Better The Economy Isn't the Same as the Market Why the Concern over Negative TIPS Yields Is Overblown When Dollar - Cost Averaging Makes Sense When Dollar - Cost Averaging Doesn't Make Sense Hear Larry Swedroe discuss current investment trends and topics every Sunday at noon on 550 AM KTRS in St. Louis or streaming via the KTRS Web site.

The present environment is characterized by unusually overvalued, overbought, overbullish conditions, with rising 10 - year Treasury bond yields, heavy insider selling, valuations on «forward earnings» appearing reasonable only because profit margins are more than 70 % above historical norms (fully explained by the negative sum of government and personal savings as a share of GDP), with the S&P 500 at a 4 - year market high, in a mature market advance, with lagging employment indicators still positive but more than half of all OECD countries already in GDP contraction, Europe in recession, Britain on the cusp, and the EU imposing massive losses on depositors in order to protect lenders in an unstable banking system where Cyprus is the iceberg's tip.

The majority of global equity markets have posted negative returns, bond yields are near record lows, the loonie has fallen to levels not seen in over 11 years, and, to top it all off, there are some steep tax hikes on the immediate horizon.

As we noted last night, BlackRock is bullish on hard currency EM bonds and generally bullish on emerging market debt in light of low - to - negative interest rates in developed markets.

See our posts Fitch On Turkey: Debt Rating Safe, Outlook Negative, After $ 25B In Emerging Market Bond Flows, Is Argentina A Safe Bet?

The negative influences of war and terrorism remain: upward pressure on oil prices, declining affordability of terrorism insurance, and a wobbly equity and bond market.