Sentences with phrase «over bond investors»

The additional 4 % that equity investors earned over bond investors did not come free, but represented payment for the increased risk that equity investing entails.

Not exact matches

«If they do target aggressively the 2 percent inflation target, and undertake a significant amount of QE, that may have an impact on underlying JGB (Japanese government bond) yields as investors become concerned over Japan's debt,» he said.

Wall Street has found a semblance of stability after a roller - coaster week, but some investors are convinced the rockiness in stocks and bonds isn't quite over for one main reason: The markets have yet to fully come to terms with how aggressively the Federal Reserve may respond to surprising economic strength.

One way to truly grow your income is to buy more annuities, in which the investor has to pay you annual sums, as well as bonds that will also pay out over time.

For, with long - term taxable bonds yielding 5 percent and long - term tax - exempt bonds 3 percent, a business operation that could utilize equity capital at 10 percent clearly was worth some premium to investors over the equity capital employed.

The idea that small companies should be able to sell small amounts of stocks and bonds to investors — which they've been prohibited from doing since the Depression — has exploded over the past few years.

Investors in Puerto Rico's bonds argued in court Tuesday over which group has a claim on sales - tax revenue that could be used to recoup their money.

Sovereign bonds will still prove popular for investors over the next two years and a sharp sell - off in fixed income will fail to materialize, an economist at UBS told CNBC Thursday.

We believe the treatment of bond investors by Detroit and Stockton represents the bleeding edge of a trend that accords a higher priority to some public expenditures over others.

Investor concerns over inflation was reflected in Lipper funds data on Thursday, which showed U.S. - based inflation - protected bond funds attracted $ 859 million over the weekly period, the largest inflows since November 2016.

The two largest funds in the segment — the $ 15 billion iShares iBoxx $ High Yield Corporate Bond ETF (HYG) and the $ 9 billion SPDR Bloomberg Barclays High Yield Bond ETF (JNK)-- have faced sizable asset outflows as investors fret over high valuations and rising interest rates.

Many bond investors have learned the hard way over the past few years that predicting the direction of interest rates can be extremely difficult.

But over longer time frames bond investors also have to be aware of inflation risk.

What we have really seen over the past several years, in terms of the appreciation of markets and the decline of interest rates based on what the Fed has been doing, is a result which has eliminated the possibility of investors in bonds and stocks to earn an adequate return relative to their expected liabilities.

A quick glance at the graph suggests that the wealth transfer from bond to stock investors has declined over the last 50 years and may now represent a much more modest premium for long - term stock investors.

Over the last twenty years, investors have witnessed a steady decline in the interest rate on investment grade bonds, GICs and term deposits.

And even if the indicator was valid (counterfactually), the article asks readers to accept as given that earnings are properly reported here, that they will grow by nearly 50 % over the coming year, and that investors are willing to key the long - term return they require from stocks to the yield on 10 - year bonds, which has been abnormally depressed in a flight to safety.

These investors may have to accept lower long - term returns, as many bonds — especially high - quality issues — generally don't offer returns as high as stocks over the long term.

A recent survey of institutional investors in Australia found that exposure to credit risk had increased in the first half of 1999 and that about half of the respondents intended to take on additional credit risk in their bond portfolios over the remainder of 1999.

To build a diversified portfolio, an investor generally would select a mix of global stocks and bonds based on his or her individual goals, risk tolerance and investment timeline.2 The chart below highlights how those broad asset classes have moved in different directions over the past 20 years.

I realize many bond investors are willing and anxious to endure losses over a period of 4 years to get back to even... but that's not me.

Muni bonds» favorable tax exemption was created a little over 100 years ago to attract investors of all stripes, not just those at the very top of the socioeconomic ladder, to help boost infrastructure spending.

What about the argument that the equity - risk premium (the premium that investors demand over risk - free assets such as government bonds) has fallen close to zero because of greater economic stability?

If five years from now the yield simply returned to its level of a decade ago (and just in case you think I'm cherry picking, over the past 25 years it has averaged a 7.5 % yield and at the low in 1981 was twice that), bond investors would suffer a meaningful loss of capital.

«Investment Advice and Individual Investor Portfolio Performance», based on over 600,000 monthly portfolio returns (encompassing individual equities, funds, bonds and derivatives) for 16,053 investors, finds that:

In short, investors have gained about a 5 % annualized excess return over the long term by investing in stocks rather than bills or bonds.

It's little wonder the world's greatest investors continue to favour quality businesses over bonds.

Pacific Investment Management Co., which runs the world's biggest bond fund, is forecasting that advanced economies will stall over the next year as Europe slides into a recession, underscoring mounting investor concern about the global economic outlook.

It's defined as the weighted average of the payments an investor will receive over time, discounted to the bond's present value.

The Zweig bond model kept investors invested in long - duration bond ETFs over that challenging period, when the majority of analysts were calling for higher rates.

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.

European bond markets initially welcomed the deal made at the July summit, although the narrowing of spreads for peripheral bonds over German Bunds was relatively muted, perhaps signaling a measure of skepticism among investors about the ability of the eurozone to survive in the absence of a formal mechanism that ensures the sharing of liabilities among member states.

The term premium is the extra compensations investors require for the risk of holding a long - term treasury bond versus a sequence of short - term treasury bills over the same period.

At present, investors have no reasonable incentive at all to «lock in» the prospective returns implied by current prices of stocks or long - term bonds (though we suspect that 10 - year Treasuries may benefit over a short horizon due to continued economic risks and still - unresolved debt concerns in Europe, which has already entered an economic downturn).

While fixed income has changed over the years, investors largely have the same goals within their bond portfolios — stability, income and diversification.

Wilson recommends investors emphasize international over domestic equities and upgrade their bond portfolios, avoiding high yield.

By contrast, an investor who put $ 100,000 into a portfolio comprised of 60 % stocks and 40 % bonds and left it alone would now have $ 214,080, based on the total returns of the S&P 500 and the Barclays bond index, over the same period.

By buying and holding bonds until maturity, investors can also buy bonds with coupon payments and maturities that meet specific income needs, as they know exactly how much they are going to receive over the life of the bond.

With the equity portion likely to grow over time and the bond portion comparatively static, this means such investors become much more exposed to equities as they get older.

The amount of extra yield over Treasuries provided by high yield bonds recently was 3.22 %, which is the lowest it has been in 10 years and makes some investors cautious.

If investors think the economy will be bullish over the next decade, they will require a higher yield to keep their money tied up in bonds.

Uncertainty over the direction the Federal Reserve might take on interest rates is also influencing investors to add to their short - term municipal bond exposure.

To this end, iShares Canada has seen the dollar amount of custom creations — a process by which institutional investors convert their individual bond holdings into units of ETFs — double in the past year to over $ 1 billion through June, according to BlackRock data.

As rates have risen, investors have, once again, started asking the perennial question: Is the bond bull market over and are rates normalizing?

It's a big part of why investors who aren't afraid of a little risk choose stocks over bonds.

With the current uncertainty over long - term tax rates as well, investors are keen on owning municipal bonds that will provide a tax - shelter for those higher tiers as well.

Not so popular last month was the iShares 20 + Year Treasury Bond ETF (TLT), which led outflows with net redemptions of $ 1.34 billion, as investors trim exposure to long - dated bonds ahead of what could be another rate hike before the year is over.

Stocks drove up, then pulled back, as investors puzzled over the minutes and bond yields climbed on the prospect of a faster pace of rate hikes.

We know that over the past four years, many a retail investor has shunned stock investment in deference to purchasing bonds.

The question for any investor given today's high stock multiples AND low bond yields globally is how much this matters not only over an intermediate time frame, but over a period potentially