In general, average retail investors
reach for yield at the wrong time, and Wall Street is more than happy to facilitate that through structured notes and other high yielding investments where the risk is greater than the excess yield.
The way to think about it is that investors
reached for yield at a time when stocks were in trouble, and indeed, rates went lower.
Not exact matches
These benefits would (i) largely go to developers and contractors
for infrastructure projects like new pipelines that would happen even without new incentives and so be highly regressive; (ii) raise costs by failing to
reach the tax - free pension funds, sovereign wealth funds and international investors who are the most plausible sources of incremental infrastructure finance; (iii) not encourage
at all the highest return maintenance projects like fixing potholes that do not
yield a pecuniary return
for investors; and (iv) by offering credits
at an unprecedented 82 percent rate, invite all kinds of tax shelter abuse.
European government bond and U.S. 10 - year Treasury
yields are trading
at their highest levels in more than two months and the U.S. 30 - year Treasury bond
yield reached a high
for the year on Tuesday.
These benefits would (i) largely go to developers and contractors
for infrastructure projects like new pipelines that would happen even without new incentives and so be highly regressive; (ii) raise costs by failing to
reach the tax - free pension funds, sovereign wealth funds and international investors that are the most plausible sources of incremental infrastructure finance; (iii) not encourage
at all the highest return maintenance projects like fixing potholes that do not
yield a pecuniary return
for investors; and (iv) by offering credits
at an unprecedented 82 per cent rate, invite all kinds of tax - shelter abuse.
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for Lukaku (Premier League) Report: Old boy Young downs Watford to lift Man United (Premier League) Reaction: Klopp looks on bright side after Chelsea draw (Premier League) Report: Willian denies Liverpool morale - boosting win (Premier League) Reaction: Guardiola targets Champions League milestone (Champions League) Report: Sterling strikes late to earn Man City top spot (Champions League) Report: Young England stifle Neymar's Brazil (friendly) Reaction: Loftus - Cheek showed he can cut it — Southgate (friendly) Report: New boys impress as England hold Germany (friendly) Reaction: Mourinho defends lack of Lukaku charity (Champions League) Report: Hapless Svilar helps Man Utd to brink of last 16 (Champions League) Reaction: «Stand up and be counted», Klopp tells Liverpool (Premier League) Report: Spurs» Kane rips sorry Liverpool to shreds (Premier League) Reaction: Guardiola proud to beat «best opponents» Napoli (Champions League) Report: Jesus earns Man City narrow win over Napoli (Champions League) Reaction: Mourinho and Klopp
at odds over Anfield stalemate (Premier League) Report: Man Utd held
at Liverpool as Mourinho parks the bus (Premier League) Report: McClean breaks Welsh hearts as Ireland
reach play - offs (2018 World Cup) Reaction: Southgate admits England have long way to go (2018 World Cup) Report: Kane sends lacklustre England to World Cup (2018 World Cup) Reaction: Man City's show of force thrills Guardiola (Champions League) Report: Chelsea old boy De Bruyne gives Man City crucial win (Champions League) Reaction: «Amazing» Lukaku won't lose focus — Mourinho (Champions League) Report: Lukaku and Martial lead Man United in CSKA rout (Champions League) Reaction: Klopp says Liverpool on track despite stalemate (Champions League) Report: Coutinho scores as Liverpool held in Moscow (Champions League) Reaction: Man United part of «second level», says Mourinho (Champions League) Report: Fix - it Fellaini gets Man United off the mark (Champions League) Reaction: De Bruyne masterclass leaves Guardiola purring (Premier League) Report: Mané sent off as five - star Man City crush Liverpool (Premier League) Reaction: Alli gesture takes shine off England win (2018 World Cup) Report: Rashford redemption sends England closer to Russia (2018 World Cup) Reaction: Klopp hopes Euro progress
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at Wembley (Community Shield)
BlackRock has observed that a convergence of market and behavioral dynamics has caused many investors to operate
at the extremes as they seek income: They are taking undue risk in a
reach for yield and
at the same time hoarding cash.
«More money has been lost
reaching for yield than
at the point of a gun.»
The first months of 2017 have surprised us several times already — the Dow
reached an all - time high of 20,619 on February 16, 10 - year U.S. Treasury
yields have stayed above 2.4 %
for the first time since mid-2015, and Adele scooped Beyoncé
at the Grammys (sources: Bloomberg and The Recording Academy).
At such a time, the best decision is not to
reach for yield, but rather to forgo
yield and preserve capital.
Beyond bonds, you are not alone if you are looking
at the table and thinking about
reaching for higher
yields through bank loans.
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.
(This equates to approximately a 3.5 %
yield) If an EE Bond does not double in value (
reach its face value) as a result of applying the fixed rate of interest
for those 20 years, Treasury will make a one - time adjustment
at the 20 year anniversary of the bond's issue date to make up the difference.
It's cheap (taking the midpoint of its guidance it's on less than 5.5 x earnings), it has got a strong balance sheet (net debt / EBITDA was 0.8 x
at end - 2010), it has a stable business model (it is the biggest distributor of fruit and vegetables in Europe, with a
reach that enables it to supply multiples across different countries), it has a decent dividend
yield (circa 4.5 %) and it is spitting out cash (free cash flow
for the twelve months ended 30 June 2011 amounted to $ 29.0 m — that's nearly a quarter of the group's market cap).
For example, when real yields are at historically high levels (such as in October, when they reached well over 3 percent), you might consider buying longer - term TIPS to lock in the high real yield for a long ti
For example, when real
yields are
at historically high levels (such as in October, when they
reached well over 3 percent), you might consider buying longer - term TIPS to lock in the high real
yield for a long ti
for a long time.
Source: press release
for Myers et al., 2015 Sea Levels 2 - 4 m Higher Until ~ 5,000 Years Ago Imply Surface Temps Were
At Least 5 °C Warmer According to the accepted (IPCC) formula
for calculating the contribution of ocean warming (thermal expansion) to sea level rise upon
reaching equilibrium, every additional degrees Celsius of surface warmth
yields -LSB-...]