Sentences with phrase «of bond market volatility»

Similarly, measures of bond market volatility are also benign.

Not exact matches

LONDON, April 23 - Hamstrung by a renewed slump in volatility and lack of clear market direction, FX and bond speculators are making historically big bets on a lower dollar and higher yields.

Patricia Oey, a senior analyst at Morningstar who focuses on ETFs, said investors should be aware of volatility in emerging market bonds.

The chart shows the number of transactions in Treasury bonds divided by the MOVE index, or Merrill Lynch Option Volatility Estimate, which measures Treasury market vVolatility Estimate, which measures Treasury market volatilityvolatility.

After a rough summer of market volatility and expectations of rising interest rates, bonds are back.

Yet managing a smooth transition out of the extraordinary bond purchases «could prove challenging» as both interest rates and market volatility rise.

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.

You could say that 2018 is still a young year and it's way too early to judge things, which is true, but the level of volatility in both stocks and bonds during February is making this year feel like we've lived through two full years already, and I think what the markets are signaling is more likely to be a sea change than a blip.

[T] he dramatic increase in leveraged bond positions by both US hedge funds and mundane money managers set in motion self - reinforcing liquidations once uncertainty over emerging markets including Turkey, Venezuela, Mexico, and Malaysia - all of which experienced sharp capital flow volatility - put pressure on speculative positions.

But amid the optimism, some investors also have an eye on potential causes for concern, including the end of the bull run for bonds and persistent low volatility in markets.

The bank's MOVE Index of volatility in the world's largest bond market was at 82.7 on May 29, up from 75.3 at the end of April and compared with an average of 77.6 over the past five years.

Bond traders also keep an eye on the VIX, a measure of stock - market volatility, since it has historically been highly correlated to the performance of stocks: rising when stocks sell off and falling when stocks rally.

«Market volatility should be a reminder for you to review your investments regularly and make sure you consider an investing strategy with exposure to different areas of the markets — U.S. small and large caps, international stocks, investment - grade bonds — to help match the overall risk in your portfolio to your personality and goals,» says Dowd.

Right now both the bond and stock markets are reflecting low levels of volatility.

Bonds rated below investment grade may have speculative characteristics and present significant risks beyond those of other securities, including greater credit risk and price volatility in the secondary market.

Bond act as both a volatility - minimizer for those investors that can't stomach a large stock allocation and a source of stability during stock market sell - offs for either spending purposes or liquidity for those that need to rebalance into lower stock prices.

With market volatility hitting multi-decade lows, junk bond yields also at record lows, the median price / revenue ratio of S&P 500 constituents at a record high well - beyond 2000 levels, and the most strenuously overvalued, overbought, overbullish syndromes we define, I'm increasingly concerned about the potential for an abrupt «air pocket» in the prices of risky assets that could attend even a modest upward shift in risk premiums.

Volatility roared into global markets in February after a prolonged calm in 2017, roiling stocks, bonds, currencies and commodities, and remained elevated through the end of March.

The fund adjusts its allocations daily based upon equity and bond market volatility, correlation between the bond and equity indexes, and the yield - to - maturity of the bond index.

This would help mitigate the risks associated with what is widely perceived as a «liquidity illusion».10 The transition to such a market environment, however, could be accompanied by strained market conditions, as suggested by recent episodes of elevated bond market volatility.

Given the above, it is reasonable to argue that even a small scale volatility shock would likely induce heightened market reaction, even if the event merely reverses some of the term premium compression in the sovereign bond markets.

For individual investors, the bond - market volatility played out in the form of sizeable losses in bond funds.

If your skittish about market volatility, hold greater percentages of bond funds and lesser amounts of stock funds.

«When I purchased long - term zero - coupon bonds in the early 1980's at market yields in excess of 13 %, I welcomed the prospect of outsized volatility because I felt it would eventually work in my favour.»

Chapter 4 — International Capital Market History examines returns (nominal and real) and volatilities of stocks, bonds and bills across 16 countries for 101 years from 1900 to 2000.

We are witnessing a gradual degradation of corporate credits, and an increase in bond market volatility appears likely over the coming months.

Higher oil prices would reinforce current market trends based on reflation: rising long - term bond yields and a shift out of perceived safer assets — bond proxies and low - volatility stocks — and into cyclical assets such as EM.

While base rates kept at or close to zero for almost seven years and three massive asset - buying programs by the Fed have undoubtedly helped stabilize the US (and world) economy during and after the recession that followed the global financial crisis, the continuation of expansionary monetary policies is now supporting a growing excess of global liquidity that has been distorting the market signals sent by stock and bond prices and thus contributing to the growing volatility seen in recent weeks.

Stock and bond markets barely budged as two huge pieces of news hit the wires Thursday, a counterintuitive, but typical, reaction in a year that has seen record - low volatility in financial markets.

Composite Treasuries Sentiment: Taking a broader view of bond market sentiment (our composite bond market sentiment indicator combines the signal from futures positioning, fund flows, implied volatility, and global bond market breadth), it's readily apparent that bond market sentiment has seen a reset from relatively stretched bearishness to just on the bullish side of neutral (i.e. the indicator is saying participants have gone from expecting higher bond yields to expecting lower bond yields).

High yield bonds (bonds rated below investment grade) may have speculative characteristics and present significant risks beyond those of other securities, including greater credit risk, price volatility, and limited liquidity in the secondary market.

A measure of the fund's volatility relative to the market, as represented by the Citigroup World Government Bond Index.

If much of the investment into bond mutual funds that has occurred the last couple of years is for purposes of dampening the volatility of a portfolio — and with the 10 - Year Treasury yield at 1.8 percent it's difficult to argue for a different motivation - then it's important to think through the thesis that bonds will defend a balanced portfolio in an equity bear market in the same way they have, especially to the extent they have in the last two bear markets.

I have underlined several times that while we did see volatility in the equity market in Q1» 18, the bond market was numb to any market movements; while Treasuries were falling, junk bonds didn't widen much compared to how they were trading at the beginning of the year.

The CNN Fear & Greed Index monitors seven market factors, including stock price momentum, stock price strength, stock price breadth, put and call options, junk bond demand, market volatility and safe haven demand, by calculating how far they have veered from their averages relative to how far they normally veer, on a scale of 0 to 100, with 0 indicating fear and 100 greed.

Indeed, world currency markets have roared back to life lately after years of hibernation, with a handful of monetary policy surprises — including the European Central Bank (ECB)'s bigger - than - expected bond buying program and the Federal Reserve (Fed)'s delay in raising rates — leading to rising volatility, as the chart below shows.

This could lead to stock and bond market volatility during the second half of this year that dwarfs what we've witnessed over the past two months.

During 2017, volatility has been low — in stocks and in bond markets, even in indicators of macroeconomic activity.

On the one hand, declining bond market activity and the persistence of low - risk arbitrage opportunities imply liquidity is impaired, while, on the other, low volatility and high demand for risky assets suggest that liquidity is alive and well.

In the days since UK Prime Minister David Cameron confirmed the date of the referendum, markets have experienced some volatility focused on UK - specific assets; spreads for some UK issuers of euro - denominated bonds have widened considerably for no apparent reason, which suggests to us that a lot of Europeans are selling their UK exposure.

All markets will continue to focus on the volatility in the equity and bond markets, geopolitical events, developments with the Trump Administration, corporate earnings, oil prices, and will turn to this afternoon's Commitment of Traders Report, followed by reports Monday on Chinese PMI, German CPI and Retail Sales, US Personal Income, Personal Spending, PCE, Chicago PMI, Pending Home Sales, and the Dallas Fed's Manufacturing Index for near term direction.

The result is a selection of bonds with higher volatility, lower credit quality, and higher yield than the broader high - yield market.

Volatility clustered in February this year after a protracted calm in 2017, roiling global equities, currencies, bonds and commodity markets and this led it to remain elevated through the end of March.

Given group - think and the determination of policy makers to do «whatever it takes» to prevent the next market «crash,» we think that the low - volatility levitation magic act of stocks and bonds will exist until the disenchanting moment when it does not.

I'm very wary that the markets may be starting to question Fed credibility, the expression of which is downside volatility in bond prices.

Bonds were a big beneficiary of this week's stock market volatility.

CORPORATE FINANCING NEWS By Gordon Platt Neither the consequent volatility in emerging markets nor weak US employment data will deter the Federal Reserve from continuing to gradually reduce its purchases of bonds, analysts say.

Investors should prepare for more interest - rate volatility ahead and the possibility of a bond - market overcorrection that could offer investment opportunity.

This is a defensive allocation, as a result of recent volatility and negative performance in a variety of equity, commodity and bond markets.

Although it might be true that stocks almost always beat bonds over long periods of time, striking the right asset allocation balance may allow investors to better manage the emotional response associated with heightened equity market volatility that often leads to poor investment outcomes.