Not exact matches
The sell off in the market for
high yield debt, or junk
bonds, is
now hitting a type of structured
bond that is similar to the the type that blew up in the financial crisis.
Anyone reading this who has investments in
high yield bond funds should get out
now.
Market participants are looking forward to getting their first major reading on earnings from the biggest technology - sector players in the coming days, but for
now, investor sentiment has been able to overcome what would ordinarily be a troubling rise in long - term
bond yields that could signal a steeper move
higher for interest rates in the near future.
After providing double - digit returns for many years, REITs are
now well off the previous
highs and trade at an estimated 15 % discount to net asset value (Source: TD Securities) and
yielding an average of 7 %, a spread of 2.75 % over 10 - year
bonds.
Depending on your risk tolerance and familiarity with individual corporations,
now could be an opportune time to consider
high yielding corporate
bonds as part of your investment portfolio.
Now, since his stunning upset victory in the U.S. presidential election,
bond yields have spiked to their
highest levels since last January, and many people are putting the blame on him for that.
After touching a low of 2.7 per cent in June,
yields on 10 - year indexed
bonds now stand at around 3.3 per cent, 15 basis points
higher than their level in early May.
With the outlook for growth in the euro area remaining fairly subdued, German
bond yields are
now below those in the US after having been around 30 basis points
higher for much of the past year.
Bull markets rarely end when the earnings
yield on stocks —
now around 6 % — is
higher than benchmark
bond yields.
In 1845, the Bank of England tightened its monetary policy by raising interest rates, which has a tendency to pop economic bubbles as capital is no longer as cheap as it once was and
now higher -
yielding bonds become more attractive to investors again.
A good example of this is that our
bond yields are
now virtually the same as US
bond yields, whereas five years or 10 years ago it was not uncommon for the gap to be as
high as five percentage points; some of this was a risk premium and some of it reflected our
higher inflation.
If you think
bond yields will normalize
higher, perhaps cash is the place you would rather be for
now.
Color me neutral
now, because the supply of cash to invest in
high yield bonds, stock IPOs, and private equity is substantial.
Even if a
bond fund manager has discretion with their maturities, I might opt for GICs over a lot of
bond funds these days because reasonably conservative,
high - quality
bonds might only be paying 3 %
yields right
now.
With Treasury
yields so low, most
high quality
bonds are not attractive
now.
If you sell out of
high -
yield bonds now because you're worried about defaults, you could miss out on potential gains if the economic growth improves or if rates stay the same.
The proximate cause of this sell - off is a reappraisal of risk in the credit markets, starting first at subprime but
now having spread to the riskier parts of corporate credit, namely
high -
yield bonds and loans to finance buy - outs.
And right
now there's just a single ETF tracking one of these indexes: the PowerShares Fundamental
High Yield Corporate
Bond Portfolio (PHB).
These returns
now pale in comparison to the
high yield index (S&P U.S. Issued High Yield Corporate Bond Index) as the search for yield continues into 2
high yield index (S&P U.S. Issued High Yield Corporate Bond Index) as the search for yield continues into
yield index (S&P U.S. Issued
High Yield Corporate Bond Index) as the search for yield continues into 2
High Yield Corporate Bond Index) as the search for yield continues into
Yield Corporate
Bond Index) as the search for
yield continues into
yield continues into 2014.
«With today's launch, knowledgeable investors
now have an even larger suite of geared ETFs to help manage their exposures to
high yield and investment grade corporate
bonds.»
The
yield spread between
high yield and investment grade municipal
bonds is
now at 265bps or 2.65 % (on March 15, 2012 the spread was 351bps).
We are
now able to access the
high -
yield municipal
bond space with ease, something we would not normally do with individual
bonds.
Given this, if you buy
bonds now (either directly or through a
bond fund), you are not only paying a
high price for the
bond, but you are also locking in a smaller
yield.
Because
bond prices increase when
yields fall, these
bonds are
now trading at a premium (that is, their price is
higher than their face value).
The VanEck VectorsTM Global Fallen Angel
High Yield Bond UCITS ETF and the VanEck VectorsTM Emerging Markets
High Yield Bond UCITS ETF are
now listed on the London Stock Exchange.
Yields for two and ten year treasuries as well as for
high grade
bonds are at five year
highs right
now.
Now the only «rally talk» is centering on how
high longer - term
bond yields might climb.
Right
now,
higher bond yields are bullish for stocks.
With the Fed
now hiking, the bellwether 10 - year Treasury note
yield has risen from 1.4 % in mid 2016 to nearly 3 % recently, lifting
yields on other
high - quality
bonds.
The average
yield for a
bond in the
high yield sector
now is around 6.3 %.
So people who maybe in the past used to own corporate
bonds now own dividend stocks, indiscriminately, because the
yields there are
higher than some corporate
bonds.
Bull markets rarely end when the earnings
yield on stocks —
now around 6 % — is
higher than benchmark
bond yields.
Now, we don't have any significant data series on
high yield bonds.
Right
now,
yields for REIT's are about 3 %
higher than government
bond yields, meaning REIT investors are being well compensated for taking on additional risk.
As for distressed, if we look at
high -
yield bonds as a proxy, 5 %
yields now leave little room for error... and let's not even mention Euro
high -
yield, where the spread actually fell below the most recent default rate!?
A further unpleasant reality adds to the industry's dim prospects: Insurance earnings are
now benefitting [sic] from «legacy»
bond portfolios that deliver much
higher yields than will be available when funds are reinvested during the next few years — and perhaps for many years beyond that.
Puerto Rico municipal
bonds are
now trading at levels more appropriate for
high yield taxable corporate
bonds.
Meanwhile,
high yield bonds represented by the S&P U.S. Issued High Yield Corporate Bond Index lost -0.48 % on the week and are now down -0.64 % for the month and have dropped from earlier higher levels to a year - to - date return of 4.8
high yield bonds represented by the S&P U.S. Issued High Yield Corporate Bond Index lost -0.48 % on the week and are now down -0.64 % for the month and have dropped from earlier higher levels to a year - to - date return of 4.
yield bonds represented by the S&P U.S. Issued
High Yield Corporate Bond Index lost -0.48 % on the week and are now down -0.64 % for the month and have dropped from earlier higher levels to a year - to - date return of 4.8
High Yield Corporate Bond Index lost -0.48 % on the week and are now down -0.64 % for the month and have dropped from earlier higher levels to a year - to - date return of 4.
Yield Corporate
Bond Index lost -0.48 % on the week and are
now down -0.64 % for the month and have dropped from earlier
higher levels to a year - to - date return of 4.87 %.
«Right
now there are fantastic opportunities in municipal
bonds... I have locked in... long - term
high - quality municipal
bonds yielding the taxable equivalent of 11 % to over 12 %!
When the Fed buys Treasuries neither the banks or most mutual fund managers are able to sell their
now expensive tbills for
higher yielding cash or other credit
bonds.
Some fixed income —
now that Fannie and Freddie are wards of the state, why not go for the
higher yields available on their
bonds?
Now that
high yield has recovered, some areas are going to start to trade like
bonds again, while others will continue to move with stocks.
With preferreds and
high yield bonds now at or near pre-Lehman levels, how long will it take for common stocks to get there as well?
So
now I put about 20 % down and borrow the rest to invest in REITS, pref shares,
high yield bonds, and then a few smaller amounts in broad indexes for emerging markets, U.S., International, Canada.
Fourth, according to Bloomberg, U.S. exploration and production companies
now comprise an ominous 17 percent of U.S.
high -
yield or junk
bonds.