Sentences with phrase «of reaching for yield»

In other words, the combination of a reach for yield, tax incentives, and the belief that default is impossible all contributed to a debt crisis that is likely not going to end well.

Not exact matches

He says the actions of central banks «attempting to spark economic growth» are «severely punishing the world's savers and creating incentives to reach for yield, pushing investors into less liquid asset classes and increased levels of risk, with potentially dangerous financial and economic consequences.»

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.

These benefits would (i) largely go to developers and contractors for infrastructure projects like new pipelines that would happen even without new incentives and so be highly regressive; (ii) raise costs by failing to reach the tax - free pension funds, sovereign wealth funds and international investors who are the most plausible sources of incremental infrastructure finance; (iii) not encourage at all the highest return maintenance projects like fixing potholes that do not yield a pecuniary return for investors; and (iv) by offering credits at an unprecedented 82 percent rate, invite all kinds of tax shelter abuse.

Western allies press Trump to maintain nuclear deal with Iran: Reuters US intelligence monitors Iranian cargo shipments into Syria: CNN A trade war is a major risk for China's debt - ridden economy: CNBC Federal judge orders gov» t must accept new DACA immigration applications: WaPo Unification of Koreas still unlikely as leaders prepare to meet: Reuters US Consumer Confidence Index rebounded in April after March decline: CB New home sales in US increased to 4 - month high in March: MarketWatch Richmond Fed Mfg Index turns negative for first time since 2016: Bond Buyer S&P Case - Shiller Home Price Index surged in Feb, up 6.3 % y - o - y: CNBC Federal Housing Finance Agency: US house prices continued to rise in Feb: HW Corp bonds with lowest investment - grade rating look vulnerable: Bloomberg 10 - year Treasury yield reaches 3.0 % for first time since 2014: CNN Money

These benefits would (i) largely go to developers and contractors for infrastructure projects like new pipelines that would happen even without new incentives and so be highly regressive; (ii) raise costs by failing to reach the tax - free pension funds, sovereign wealth funds and international investors that are the most plausible sources of incremental infrastructure finance; (iii) not encourage at all the highest return maintenance projects like fixing potholes that do not yield a pecuniary return for investors; and (iv) by offering credits at an unprecedented 82 per cent rate, invite all kinds of tax - shelter abuse.

Still, this looks generous compared to Europe, where 10 - year German Bund yields reached a new all - time low of 0.28 % and seven - year yields moved below zero for the first time.

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.

Retirees and other investors are reaching farther and farther for yield, piling into all sorts of increasingly risky investments.

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.

After reaching a year - to - date low Option Adjusted Spread (OAS) of 378 bps on May 8, the spread for the S&P U.S. Issued High Yield Corporate Bond Index reversed direction.

The other «pest» most known for its tendency to damage pepper seedlings (and thus reducing potential yields) is a cat, who will graze on your pepper seedlings if he / she has the chance, so keep the six - packs and seedling tray out of reach.

Reaction: De Bruyne is my Man City blueprint — Guardiola (Premier League) Report: De Bruyne makes it sweet 16 for awesome Man City (Premier League) Report: Otamendi wins derby to fire Man City 11 points clear (Premier League) Reaction: Klopp calls for Liverpool focus after Euro spree (Champions League) Report: «Fab Four» fire seven - goal Liverpool into last 16 (Champions League) Reaction: Mourinho pledges only «the truth» on injuries (Champions League) Report: Lukaku and Rashford send Man United into last 16 (Champions League) Reaction: Mourinho wants new shooting boots for Lukaku (Premier League) Report: Old boy Young downs Watford to lift Man United (Premier League) Reaction: Klopp looks on bright side after Chelsea draw (Premier League) Report: Willian denies Liverpool morale - boosting win (Premier League) Reaction: Guardiola targets Champions League milestone (Champions League) Report: Sterling strikes late to earn Man City top spot (Champions League) Report: Young England stifle Neymar's Brazil (friendly) Reaction: Loftus - Cheek showed he can cut it — Southgate (friendly) Report: New boys impress as England hold Germany (friendly) Reaction: Mourinho defends lack of Lukaku charity (Champions League) Report: Hapless Svilar helps Man Utd to brink of last 16 (Champions League) Reaction: «Stand up and be counted», Klopp tells Liverpool (Premier League) Report: Spurs» Kane rips sorry Liverpool to shreds (Premier League) Reaction: Guardiola proud to beat «best opponents» Napoli (Champions League) Report: Jesus earns Man City narrow win over Napoli (Champions League) Reaction: Mourinho and Klopp at odds over Anfield stalemate (Premier League) Report: Man Utd held at Liverpool as Mourinho parks the bus (Premier League) Report: McClean breaks Welsh hearts as Ireland reach play - offs (2018 World Cup) Reaction: Southgate admits England have long way to go (2018 World Cup) Report: Kane sends lacklustre England to World Cup (2018 World Cup) Reaction: Man City's show of force thrills Guardiola (Champions League) Report: Chelsea old boy De Bruyne gives Man City crucial win (Champions League) Reaction: «Amazing» Lukaku won't lose focus — Mourinho (Champions League) Report: Lukaku and Martial lead Man United in CSKA rout (Champions League) Reaction: Klopp says Liverpool on track despite stalemate (Champions League) Report: Coutinho scores as Liverpool held in Moscow (Champions League) Reaction: Man United part of «second level», says Mourinho (Champions League) Report: Fix - it Fellaini gets Man United off the mark (Champions League) Reaction: De Bruyne masterclass leaves Guardiola purring (Premier League) Report: Mané sent off as five - star Man City crush Liverpool (Premier League) Reaction: Alli gesture takes shine off England win (2018 World Cup) Report: Rashford redemption sends England closer to Russia (2018 World Cup) Reaction: Klopp hopes Euro progress yields transfer lift (Champions League) Report: Can brace gets Liverpool back into big time (Champions League) Report: Sterling rescue act spares 10 - man Man City (Premier League) Reaction: Conte happy for Chelsea to play the hunters (Premier League) Report: Alonso ruins Spurs» Wembley house - warming (Premier League) Report: Lukaku double fires Man United to winning start (Premier League) Reaction: Wenger lauds Giroud after Arsenal edge Leicester (Premier League) Report: Giroud earns Arsenal madcap opening win (Premier League) Reaction: Wenger fearful of another slow Arsenal start (Community Shield) Report: Courtois and Morata gift Arsenal victory at Wembley (Community Shield)

Satellite measurements and a model of how efficiently maize converts that light to mass, reveal that solar brightening, an increase in the sunlight penetrating the atmosphere and reaching Earth, accounted for 27 % of the yield increase U.S. Corn Belt farmers have observed between 1984 and 2013, researchers report today in Nature Climate Change.

Once the warming that had been going on for millions of years reached a threshold and that permafrost began to thaw, decomposing organic matter yielded 1.2 trillion tons of carbon as carbon dioxide and methane.

In the midst of all this, they long for a solution that can yield a far - reaching result and the practice of halasana benefits the individual with a calm and peaceful brain.

However, with yield rates improving, iPad mini shipments for the first two months of the fourth quarter have already surpassed eight million units, and should successfully break 10 million for the quarter with a chance to reach 12 million, the sources noted,» reported DigiTimes.

High yield option - adjusted spreads (OAS) for the year have double peaked, reaching highs of 907 and 883 bps on Jan. 20, 2016, and Feb. 11, 2016, respectively.

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.

«More money has been lost reaching for yield than at the point of a gun.»

«We've also seen the compression of spreads on high - yield debt, which certainly looks like a reach for yield type of...

So, even though 30 - year mortgage rates fell for the tenth consecutive week to reach a new low of 5.01 %, the bump up in Treasury yields should be cause for concern.

But keep in mind that high yield spreads were below 4 % for much of the 2003 to 2007 period, reaching a low of 2.38 %.

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.

I noted a couple of weeks ago that the implied default probability for Greek debt had reached about 100 % on the basis of 2 - year yield spreads.

The first months of 2017 have surprised us several times already — the Dow reached an all - time high of 20,619 on February 16, 10 - year U.S. Treasury yields have stayed above 2.4 % for the first time since mid-2015, and Adele scooped Beyoncé at the Grammys (sources: Bloomberg and The Recording Academy).

And in this search for higher yields, we find investors are reaching deeper and deeper into lower - grade fixed - income products, which come with significant credit and interest rate risks,» says Som Seif, president and CEO of Purpose Investments, through a statement.

For example, a 2.5 % yield that grew 10 % annually would take 5 years just to reach a yield of 4 %.

Immediate annuity and deferred annuity payout rates were up this month for most insurers as the yield on the 10 - Year Treasury, which is a good proxy for annuity pricing, reached its highest point since the first quarter of 2017.

SmartyPig is a free high - yield online piggy bank that helps you reach your short - term and long - term savings goals, like taking a vacation, saving for college, buying a car or anything else that you wish to fund, while earning a high interest rate on all of your deposits.

While most income investors are reaching for big yields right now, a small group of «hidden yield» stocks are quietly handing smart investors growin....

Compounding is a very important part of generating investment gains, and once you reach savings account financial goals, you can consider looking for an investment account that will provide you will larger yields, which can generate robust compounding gains.

The recent elimination of foreign content rules in tax - deferred accounts, allows us to reach for yield by setting up a high - interest savings account for the cash portion.

For example, it has taken me nearly seven years to reach my current level of dividend income, and that's with a mix of high to moderate risk dividend stocks with equally high to moderate yields.

Unlike Bombardier, we think the ARD deal is a classic late cycle example of investors reaching for yield without considering the downside risk.

Cerulli explains that the interest rate situation since the financial crisis «has pushed institutional fixed - income investors of all stripes to reach for yield to meet investment goals.»

We think one of the biggest mistakes that a lot of dividend investors make is reaching for yield.

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?

Toward the end of February 2008, the yield ratio of munis to Treasuries reached 130 %, and that ratio stayed there for a couple of weeks.

Reaching for yield always has risks, but the penalties are most intense at the top of the cycle, when credit spreads are tight, and the Fed's loosening cycle is nearing its end.

If avoiding a painful recession requires zero or negative interest rates that juice up asset prices and force investors — through financial repression — to reach for yield and take more risk than they should, then — so the wisdom of today's central bankers» goes — so be it.

(This equates to approximately a 3.5 % yield) If an EE Bond does not double in value (reach its face value) as a result of applying the fixed rate of interest for those 20 years, Treasury will make a one - time adjustment at the 20 year anniversary of the bond's issue date to make up the difference.

A long - run dataset compiled by famed researched Kenneth French illustrates the fallacy of reaching for very high - yielding stocks.

When looking for high dividend stocks, you should avoid the temptation of «reaching for yield.»

Their solution is to reach for yield in things that seem appetizing, without realizing the essential nature of risk and reward.

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.

Having said this, nearly everyone who comes to me is trying to squeeze income out of low - yielding instruments or reaching for yield by taking a big risk.

In fact, all that has to happen is for the yield - to - maturity of TIPS to rise to 2.5 % for us to reach year 40.

For me, reaching a yield - on - cost of 10 % or higher is the ultimate goal.