Sentences with phrase «over government bonds»

Against this backdrop, we broadly prefer equities over fixed income, and selected credit over government bonds.
If interest rates are rising, he argues, it means the economy is improving and the risk inherent in corporate bonds over government bonds is minimal.
We prefer European equities over government bonds and credit amid a sustained, above - trend economic expansion and a steady earnings outlook.
To offset those potential losses, investors are demanding a 5.5 percentage point premium over government bonds to buy these high - risk bonds.
Additionally, 27 percent said they prefer bitcoin to stocks; 30 percent would choose bitcoin over government bonds; and 22 percent would choose bitcoin over real estate.
We see stronger growth supporting credit over government bonds, and we have a long - term preference for inflation - linked securities over nominal debt.
The default risk factor refers to the additional expected return of corporate bonds over government bonds.
We prefer European equities over government bonds and credit amid a sustained, above - trend economic expansion and a steady earnings outlook.
For «A» rated corporates, the spread over government bonds of comparable maturity is currently about 100 basis points, which is noticeably wider than a couple of years ago (Graph 32).
We prefer selected subordinated financial debt within European credit and favor high - quality U.S. credit and emerging market debt over government bonds, but credit valuations are elevated across the board.
Credit series are based on Barclays indexes and the spread over government bonds.
Generally I think corporates are harder to value / analyse than equities, and the extra yield (minimal over government bonds in normal times, albeit not now in these abnormally low - yielding AAA sovereign bond times) isn't worth the extra risk, as you don't get the downside protection / anti-correlation you get with government bonds.
Such tight spreads mean that even a small selloff can wipe out credit's extra income over government bonds.
I actually wasn't sure whether only debt issued over Government bond is in the scope of this question so I just decided to add arbitration to my answer - for the layman that is some form of debt and proper legal advise is beyond my capabilities.
When credit spreads are this tight, even a relatively small selloff can wipe out the income advantage of credit over government bonds.
30 % of the millennials who participated in the survey said that they would any day hold Bitcoins worth $ 1k over government bonds of same worth.
The traditional way to insulate yourself from a declining bond market is to hold bonds maturing in five years or less, emphasize corporate bonds over government bonds and include some floating rate bonds as well.
We prefer selected subordinated financial debt within European credit and favor high - quality U.S. credit and emerging market debt over government bonds, but credit valuations are elevated across the board.
A reflationary outlook also underpins our preference for U.S. credit over government bonds.
For now, the reflationary backdrop and benign market reaction to a likely March Fed move reinforce our preferences for equity over debt, and credit over government bonds.
Fixed income has a role in portfolios and we like credit over government bonds, but we generally prefer equities over bonds in a low - return world.
But the boom in equity markets has driven down their «spread» over government bonds to the lowest level since before the 2008 — 09 financial crisis.
When the bond mutual fund takes on a lot more risk than you'd expect — perhaps by overweighting riskier corporate bonds over government bonds — our advice is to get out.
Fixed income has a role in portfolios and we like credit over government bonds, but we generally prefer equities over bonds in a low - return world.
Against this backdrop, we broadly prefer equities over fixed income, and selected credit over government bonds.
When credit spreads are this tight, even a relatively small selloff can wipe out the income advantage of credit over government bonds.
Given that those bonds yield a 1.5 percentage point premium over government bonds (which have a default risk close to zero), a corporate bond investor is likely to be left with a one percentage point advantage over government bonds after accounting for the risk of loss.
This represents a mouth - watering advantage of 1.5 to 5.5 percentage points over government bonds, depending upon how much risk you are prepared to assume.
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