Sentences with phrase «other bond yields»

The same did not hold true for other bond yields, though, especially European bond yields.

Not exact matches

It is not as if Ontario is having problem finding takers for its debt and yields on the province's bonds are competitive with other provinces.
In other words, because investors can not generate a sufficient return from low - yielding bonds, they turn to stocks as their only alternative.
Bond investors like mutual funds and pension funds hope to buy securities with comparatively higher yields than other asset - backed debt that could also provide diversification benefits.
The biggest losers were energy (XLE), consumer staples (XLP) and materials (XLB), all down more than 7 percent amid riding bond yields — which makes dividend stock yields less attractive and overrode other factors, like stronger oil prices and a weak dollar.
Others have noted that if the Fed continues raising short - term rates while long - term rates remain stalled, it could turn the shape of the bond yield curve upside down, a typical signal of recession.
I sent out to some people last Wednesday why I thought the CDS market would outperform ETF's, and that is still my view, and has a lot to do with the bonds that make up the high yield index and their rate risk exposure for some, and horrible convexity for others.
Italian 10 - year bond yields fell 2.5 basis points (bps) to 1.754 percent while other euro zone yields were pushed higher by a sell - off in U.S. Treasuries and data suggesting the euro zone economy was not as weak as expected.
Attract a wider array of capital to clean energy investments by developing innovative financing structures — from reducing investment risk though our Catalytic Finance Initiative to engaging individual investors through our Socially Responsible Investing platform to building new markets for green bonds, yield - cos and other vehicles.
debt obligations of the U.S. government that are issued at various intervals and with various maturities; revenue from these bonds is used to raise capital and / or refund outstanding debt; since Treasury securities are backed by the full faith and credit of the U.S. government, they are generally considered to be free from credit risk and thus typically carry lower yields than other securities; the interest paid by Treasuries is exempt from state and local tax, but is subject to federal taxes and may be subject to the federal Alternative Minimum Tax (AMT); U.S. Treasury securities include Treasury bills, Treasury notes, Treasury bonds, zero - coupon bonds, Treasury Inflation Protected Securities (TIPS), and Treasury Auctions
During times of recession the economy is stimulated with low interest rates and once they get low enough, the yield on bonds and other fixed investments becomes so unattractive that money starts to flow into equities.
Bond yields spiked, and prices for a number of other financial assets that had benefited from expectations of ongoing asset purchases by the Fed dropped precipitously, not just in the United States but in almost every other country.
In viewing your chart in one of your other posts regarding the long term returns of long bonds when current yield is under 3 %, why would I want to diversify into almost certain loss, after effects of inflation?
The potential counter weights that could cap the 10 - year yield would be a negative stock market reaction that drives investors to bonds; lower interest rates outside the U.S. that make the U.S. debt relatively more attractive, and good demand for longer - dated securities from insurers and others.
Long - term bond yields continue to extend their hostile upward trend, while other market internals continue to diverge as well.
Short - term Treasury yields have declined, but other yield classes including utilities, long - term bonds, and stock yields are in hostile uptrends.
In other words, equity dividends are higher by a third of a percentage points than quality bond yields, and that's before the dividend tax credit and before any capital gains.
In addition to the positive technical element I mentioned earlier, the potential removal of the alternative minimum tax could cause AMT paper to trade closer to the yield on other municipal bonds.
In other words, at a certain level higher bond yields create real competition for stocks, particularly dividend stocks, and put downward pressure on multiples.
Monti, however, was critical of German and other insistence on austerity and surrender of control as the price for assistance to countries struggling with unsustainable bond yields.
Because they are considered to have low credit or default risk, they generally offer lower yields relative to other bonds.
The goal of yield maintenance is to allow the conduit lender to reinvest the money returned from the borrower, plus a penalty fee, into bonds or other investments and receive the same cash flow as if the loan hadn't been paid off early.
Stocks slide on rising rates and yield curve inversion concerns, but a recession doesn't look likely, judging by other economic data and the high - yield bond...
Other bond funds focus on a narrower mix of bonds, such as a short - term Treasury fund or a corporate high yield fund.
At Bear, Stearns & Co., Mr. Abbott served as a Vice President in Financial Analytics & Structured Transactions (F.A.S.T) where he structured and reverse engineered complex CDO transactions, secured by a wide range of debt products, including high yield bonds, senior secured leverage loans, trust preferred bank loans, RMBS as well as other esoteric receivables.
Other bond funds focus on a narrower slice of the bond market, such as a short - term Treasury fund or a corporate high - yield fund.
On one side of the equation we have rising commodity prices, and on the other side we have falling bond yields.
I still think there will be a flight to safety in sovereign bonds when stocks have a bear market but other areas such as high yield and corporate debt could run into some problems.
Typically, a higher - rate environment will increase spreads for banks / insurers, but you're absolutely right that the 10 - year yield could stay flat, especially when the yields for government bonds of other countries are so low.
There are other factors impacting bond yields this week, including Friday's jobs report, which could drive yields higher if wages rise more than expected.
We aim to add value in the Corporate Advantage Fund by generating yield using a relative valuation approach and investing in investment grade corporate bonds, high yield bonds, preferred shares, and other fixed income securities.
Franklin Limited Duration Income (FTF) is a closed end fund that seeks high current income and capital appreciation through investment in high yield corporate bonds, floating rate bank loans and mortgage and other asset backed securities.
Their opinions of that creditworthiness — in other words, the issuer's financial ability to make interest payments and repay the loan in full at maturity — is what determines the bond's rating and also affects the yield the issuer must pay to entice investors.
Some of the best indicators for mortgage rate movement include the yield on 10 - year Treasury bonds from the government and the LIBOR — a rate that determines how much banks must pay to borrow money from each other.
However, high - yield (junk) bond funds and international bond funds can be affected by factors other than interest rates.
An unusually high yield relative to similar bonds is often an indication that the market is anticipating a downgrade or perceives that bond to have more risk than the others and therefore has traded the bond's price down (thereby increasing its yield).
But this masks the reality that equities — and by extension other risk assets — still look attractive taking into account that bond yields are likely to stay historically low.
Interest rate risk Although high yield bonds have relatively low levels of interest rate risk for a given duration or maturity compared to other bond types, this risk can nevertheless be a factor.
Second, an important consequence of rising US optimism has been an increase in US bond yields, some two - thirds of which has been imported into Canada — much more than in many other countries.
Overall, we are seeing a pickup in yields globally, resulting in narrower yield differentials between U.S. Treasuries and other sovereign bonds.
There is the Treasury or Government bond, the Zero - coupon bonds, the Fixed rate bonds, the Floating rates notes, the High - yield bond, the Exchangeable bonds, the Convertible bonds, the Inflation - indexed bonds, the Subordinated bonds, the Covered bonds, the Perpetual bonds, the Bearer bonds, the Municipal bonds, the Revenue bonds, and the Social impact bonds amongst others.
-LSB-...] The Most Interesting Asset Class Over the Next Decade «Vanguard highlighted high - yield bonds to show how they typically perform worse than other types of bonds during a stock market drop.»
That lower risk to payment usually helps high - yield bond prices not fall as much as other bonds.
While the low level of credit spreads in Australia (and in other major bond markets) largely reflects favourable trading conditions for corporates, there is evidence that the search for yield has been a contributing factor.
The bonds of JCPenney (which is not in great financial shape) on the other hand, were yielding 8.3 %.
However, with yields from treasury bonds now at a little over 1.5 %, many investors are looking for other ways to create income in retirement.
An increase in rates will still decrease the price of high - yield bonds but not as much as with other bonds because high - yield bonds follow the economy more closely.
As I emphasized last week, «While we're already observing cracks in market internals in the form of breakdowns in small cap stocks, high yield bond prices, market breadth, and other areas, it's not clear yet whether the risk preferences of investors have shifted durably.
Vanguard highlighted high - yield bonds to show how they typically perform worse than other types of bonds during a stock market drop.
In other words bond traders look at the yield of a bond in terms of where it is trading vs. treasuries.
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