Not exact matches
The gap between the earnings yield
on the S&P and Baa
corporate bonds is over two standard deviations
in favour of stocks.
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.
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 FOMC Meeting Statement followed by reports tomorrow
on UK PMI, Eurozone PPI, CPI, US Challenger Job Cuts, Productivity, Unit Labor Costs, Jobless Claims, Trade Balance, Markit Services PMI, ISM Services, Durable Goods and Factory Orders for near term direction.
It also appears that the ECB will concentrate
on reducing its purchases of government (rather than
corporate)
bonds, but here issuance is increasing, with the net amount of eurozone government debt set to expand
in 2018,
in contrast to the contraction seen over the previous 18 months.
This leaves us roughly
in the same position that we started the year, slightly overweight to spread product, i.e., investment - grade and high - yield
corporate bonds and emerging markets (more recently, we also went back to a slight overweight
on commercial mortgage - backed securities).
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 reports tomorrow
on Japanese PMI, UK PMI, US Vehicle Sales, Markit Manufacturing PMI, Construction Spending and ISM Manufacturing for near term guidance.
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 reports tomorrow
on Japan's Leading Index and Machine Tool Orders, German IFO, US Case - Shiller Home Price Index, New Home Sales, Richmond Fed and Consumer Confidence for near term guidance.
Within fixed income, we suggest raising average credit quality, particularly focusing
on investments
in areas like high - grade
corporate and municipal
bonds.
This is, however, still below the comparable figures
in the United States, where 70 per cent of
corporate bonds on issue are rated below A +.
Each day these dealers,
on average, trade about $ 700 billion of
bonds (including Treasury, government agency,
corporate, and municipal
bonds) with clients, and billions more
in trades among themselves.
The fund focuses
on US
corporate bonds, convertible securities, foreign debt instruments (including those
in emerging markets) and US government securities
Floating - rate * The coupon
on a floating - rate
corporate bond changes
in relationship to a predetermined benchmark, such as the spread above the yield
on a six - month Treasury or the price of a commodity.
Moreover, the yield
on industrial
bonds in the Dow Jones
Bond Average continues to rise, further widening the risk premium
on corporate debt.
According to preliminary statistics, the aggregate financing to the real economy (AFRE)... was RMB 19.44 trillion
in 2017... Specifically, RMB loans to real economy registered an increase of RMB 13.84 trillion... foreign currency - denominated loans (RMB equivalent)... recorded an increase of RMB 1.8 billion... entrusted loans registered an increase of RMB 777 billion... trust loans registered an increase of RMB 2.26 trillion... undiscounted bankers» acceptances recorded an increase of RMB 536.4 billion... net financing of
corporate bonds stood at RMB 449.5 billion... equity financing
on the domestic stock market by non-financial enterprises registered RMB 873.4 billion...
The average investment - grade (high - yield)
bond trades
on less than 32 % (36 %) of days over the prior six months — liquidity
in corporate bonds was considerably lower than
in traditional listed equity markets.
In sovereign debt and, to an even greater degree, corporate bond markets, liquidity hinges in large part on whether specialised dealers («market - makers») respond to temporary imbalances in supply and demand by stepping in as buyers (or sellers) against trades sought by other market participant
In sovereign debt and, to an even greater degree,
corporate bond markets, liquidity hinges
in large part on whether specialised dealers («market - makers») respond to temporary imbalances in supply and demand by stepping in as buyers (or sellers) against trades sought by other market participant
in large part
on whether specialised dealers («market - makers») respond to temporary imbalances
in supply and demand by stepping in as buyers (or sellers) against trades sought by other market participant
in supply and demand by stepping
in as buyers (or sellers) against trades sought by other market participant
in as buyers (or sellers) against trades sought by other market participants.
In pursuance of the Union Budget 2018 announcement, the board also cleared a proposal
on changing the investment grade rating from AA to A for
corporate bonds, which would boost investment scope while ensuring credit quality.
Which doesn't cover investments
in shares, the returns
on which are directly affected by changes
in the
corporate tax rate (or the myriad of other investment vehicles liked
bonds, REITs, mutual fund trusts, etc. that make up the bulk of the universe for Canadian investors).
This feature article draws
on recent work by the Committee
on the Global Financial System (CGFS) to investigate trends
in market - making and what they mean for the financial system (CGFS (2014)-RRB-.2 We use a simple conceptual framework to assess how supply and demand for liquidity have changed
in fixed income markets, particularly
in markets for sovereign and
corporate bonds.
While yields
on government
bonds remain unattractive, according to Stopford, investment - grade
corporate bonds offer a modest pickup
in yield — and high - yield
bonds, a more significant advantage.
The yield
on the 10 - year Treasury
bond climbed above 3 % for the first time since 2014, but of greater concern to many market participants were remarks
in major
corporate earnings reports suggesting that business conditions had likely hit their peak and were poised to deteriorate going forward.
In recent months, the yield
on US
corporate bonds, especially investment - grade securities, is a little more than 100 basis points compared to the yield
on government debt, dropping within striking distance of the lows seen post the 2008 financial crisis.
A deepening and widening of the nascent
corporate bond market
in India is
on track, following reforms by the Reserve Bank of India aimed to draw
in foreign and small investors.
Any significant rise
in corporate bond yields would throw cold water
on a key artificial impetus
in the stock market — corporations borrowing heavily to buy back their own stock.
The resulting increase
in corporate bond issuance has pushed up swap spreads, with the spread
on US 10 - year (bank / government) swaps, for example, recently at its highest level for several years (Graph 7).
In the November 2017 version of their paper entitled «
Bonds, Stocks, and Sources of Mispricing», Doron Avramov, Tarun Chordia, Gergana Jostova and Alexander Philipov investigate drivers of U.S.
corporate stock and
bond mispricing based
on interactions among asset prices, financial distress of associated firms and investor sentiment.
«Starting
in late 2014, overseas buyers began a US
corporate bond shopping spree, adding $ 11.5 billion a month,
on average, over 13 consecutive months, taking down roughly 35 % of net supply of US issuer paper,» Melentyev writes.
With the UK economy gradually picking up pace and inflation rising
on the back of a weaker currency, the UK's central bank may finally go ahead with a rate hike for the first time
in a decade, although it is widely expected to leave the monthly government and
corporate -
bond purchases untouched at # 435 and # 10 billion respectively.
Its $ 46 billion
corporate bond issue
in January 2016 was hailed as the largest
on record; large
bond issues were easier to trade than small ones as banks shied from debt capital market
in response to capital requirements.
Investment - grade
corporate bond funds saw $ 2.32 billion exit
in the last week, the second - largest outflow
on record.
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.
As seen
in prior cycles, changes
in short - term interest rates alone had yielded little effect
on financial conditions, as buoyant risk sentiment strengthened equities,
corporate bonds, as well as various forms of «esoteric» investments.
The BAA spread refers to the yield
on corporate bonds above the rate
on comparable maturity Treasury debt, and is a market - based estimate of the amount of fear
in the
bond market.
Abstracting from changes
in the composition of
corporate bond indices, spreads between yields
on government and
corporate bonds have shown a small net decline over the past three months (Graph 48).
The average yield
on the iShares iBoxx InvesTop High Yield
Corporate Bond (AMEX: HYG) exchange - traded fund has dropped around 10 %
in that period.
They're taking advantage of low interest rates
on euro - denominated issues after the European Central Bank's decision to start buying investment - grade
corporate bonds in June — part of its economic stimulus program.
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 tomorrow's much awaited US Payroll Report for near term direction..
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.
Growth
in U.S. real GDP would fall 2.7 % over the three years that follow a vote, with a corresponding decline of 13.1 %
in U.S. equities and a contraction of 0.53 %
on the yields
in U.S.
corporate bonds.
Rather, the increase
in spreads appears to reflect both tightness
in the Commonwealth Government
bond market (where supply remains limited and demand by foreign investors appears to have increased) and upward pressure
on swap rates (one benchmark against which
corporate bonds are priced) as companies have sought to lock
in fixed - rate borrowings due to expected increases
in interest rates.
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 earnings from Apple after the bell today, and reports tomorrow
on Japanese PMI, Chinese Caixin PMI, Eurozone GDP, PMI, Unemployment, US MBA Mortgage Applications, ADP Employment Change, Oil Inventories, and the FOMC Meeting Statement for near term direction.
Still
in late 2008, Fulton's firm was buying up quality
corporate bonds for 20 cents to 40 cents
on the dollar.
To better understand green
bond performance and valuations
in the secondary market, Morgan Stanley analyzed 121 self - labeled U.S. and European
bonds, focusing
on corporate, and government or government - related benchmark - size securities (at least $ 500 million).
Corporate advisor Duff & Phelps produces the Stocks,
Bonds, Bills, and Inflation (SBBI) Yearbook (formerly Ibbotson SBBI Yearbook), which compiles extensive data
on these returns
in its annual publication.
Issuance of investment - grade
corporate bonds picked up
in early March
in a receptive market, as investors sought higher yields than were available
on safe - haven Treasury
bonds.
Since 1970, when they began tracking defaults, the rate is even lower at 0.07 %.2 Compare that to global
corporate bonds, which defaulted at a 2.06 % rate
in 2016.3 It's important to note that the overall muni rate remained that low despite 2016 having the highest municipal defaults volume
on record, all related to Puerto Rico.
In private industry, Patrice worked on Wall Street in Employee Relations and later in Corporate Bond Tradin
In private industry, Patrice worked
on Wall Street
in Employee Relations and later in Corporate Bond Tradin
in Employee Relations and later
in Corporate Bond Tradin
in Corporate Bond Trading.
Long - term
corporate bonds,
on average, compounded at 5.1 %
in these 50 - year periods.
This new ETF is the only
corporate bond fund1 — mutual fund or ETF —
in the U.S. with substantially all of its assets rated AAA.2 COBO lists
on NYSE Arca today.
Also, many
corporate bonds are callable, meaning that they can be called
in by the issuing company and redeemed
on a fixed date.