Sentences with phrase «of tight credit spreads»

However, credit is not cheap across the board, so we focus on higher - quality corporates within a world of tight credit spreads.

In times of tight credit spreads, the pressure on these banks to «cheat» when it comes to risk taking and disclosure becomes irresistible.

Not exact matches

I noted a week ago that Bernanke had essentially eased monetary policy by spurring a loosening of financial conditions via higher stock prices, lower bond yields, tighter credit spreads, and a weakening of the U.S. dollar.

But with the Fed looking at more rate hikes and credit spreads already near their tightest levels of the cycle, it's tough to see how liquidity would become much more loose than it was two months ago.

When it comes to valuations, U.S. and emerging market credit spreads reached post-crisis tights in late 2017, reflecting low default risks against a backdrop of solid global growth.

We prefer to take economic risk through equities rather than credit against a backdrop of low absolute yields, tights spreads and rising rates.

Looking back over the past fifteen years, in months when high yield credit spreads were widening, indicating tighter financial conditions and more risk aversion, the S&P 500 outperformed the Russell 2000 by an average of roughly 0.45 percent.

By looking at how the credit spread for a category of bonds is changing, you can get an idea of how «cheap» (wide credit spread) or «expensive» (tight credit spread) the market for those bonds is related to historical credit spreads.

U.S. high - yield bond spreads are 34 basis points, or hundredths of a percentage point, tighter; cover spreads are 21 basis points tighter, and emerging - market credit excess returns are at 3.6 %.

Financial firms are opaque by nature, and investors should be skeptical of those furthest out on the risk spectrum, particularly when credit spreads are tight.

If the insurance company can handle the lack of incremental income, investing in higher credit quality instruments in tight spread low implied volatility environments can mitigate the risks.

Of note, the new Chinese muni bonds were priced tight at issuance and they continue to trade at tight credit spreads above the sovereign bond yields.

We prefer to take economic risk through equities rather than credit against a backdrop of low absolute yields, tights spreads and rising rates.

Far better to eat into principal a little when spreads are tight, than to meet the spread target and get whacked in the bear phase of the credit cycle.

In the credit markets, spreads on the high yield securities are approaching historically tight levels, while key credit metrics such as leverage and coverage ratios are showing signs of weakening.

We see an opportunity in MBS to add income while decreasing credit risk against a backdrop of ever - tighter corporate bond spreads.

Back, front, screen or trap — no matter what door you looked out of over the last 24 months, credit spreads were tighter.

However, those with a longer - term horizon should take note of historically tight spreads, rising corporate debt and lower credit quality.

Today's tight credit spreads reflect low levels of market volatility.

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.

Stocks have continued on a tear, and corporate credit spreads are very tight, tighter than any of the other periods where the yield curve was shaped as it is now.

The combination of the credit market resurgence and tight spreads, attractive equity valuations and ample private equity «dry powder» create the conditions for increasing the volumes of [leveraged buy - outs (LBOs)-RSB-.