Sentences with phrase «reaching for yield in»

Some investors are reaching for yield in risky places.
Not only were they relying on continued growth in real estate prices, but they were reaching for yield in a low yield environment.
There are many investors that are reaching for yield in this environment, and I think they will eventually get burned.
Yet as long as rates stay low, too many investors reach for yield in ways that may be dangerous, he added..
Their solution is to reach for yield in things that seem appetizing, without realizing the essential nature of risk and reward.

Not exact matches

In a crisis style event the current reach for yield will become a reach for safety.
In other words, the combination of a reach for yield, tax incentives, and the belief that default is impossible all contributed to a debt crisis that is likely not going to end well.
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.
Nickel set for biggest weekly increase since April 2009 Dow Jones Industrial Average reaches record on Thursday Gold heading for worst week in a month Largest increase in 30 - year Treasury yields since 2009 Italian bonds are poised for worst three - week selloff since 2011 Emerging - market stocks set for biggest three - day slide since August 2015 Mexico's peso plunges 12 percent in three daysCommodities
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.
Western allies press Trump to maintain nuclear deal with Iran: Reuters US intelligence monitors Iranian cargo shipments into Syria: CNN A trade war is a major risk for China's debt - ridden economy: CNBC Federal judge orders gov» t must accept new DACA immigration applications: WaPo Unification of Koreas still unlikely as leaders prepare to meet: Reuters US Consumer Confidence Index rebounded in April after March decline: CB New home sales in US increased to 4 - month high in March: MarketWatch Richmond Fed Mfg Index turns negative for first time since 2016: Bond Buyer S&P Case - Shiller Home Price Index surged in Feb, up 6.3 % y - o - y: CNBC Federal Housing Finance Agency: US house prices continued to rise in Feb: HW Corp bonds with lowest investment - grade rating look vulnerable: Bloomberg 10 - year Treasury yield reaches 3.0 % for first time since 2014: CNN Money
This very low market volatility can lead investors to take on more risk, and in a period of still relatively low interest rates, to «reach for yield» — that is, buy riskier assets than one would otherwise, in order to achieve a desired profit or savings goal.
Year - to - date issuance for global high - yield debt reached the highest level for any full year in September and continues to expand.
While reaching for yield has been successful in the past, we suggest increasing credit quality, increasing liquidity and reducing risk in an environment where the Fed's policy changes introduce a very different forward - looking outlook.
In addition, terms and conditions in the leveraged - loan market, which provides credit to lower - rated companies, have eased significantly, reportedly as a result of a «reach for yield» in the face of persistently low interest rateIn addition, terms and conditions in the leveraged - loan market, which provides credit to lower - rated companies, have eased significantly, reportedly as a result of a «reach for yield» in the face of persistently low interest ratein the leveraged - loan market, which provides credit to lower - rated companies, have eased significantly, reportedly as a result of a «reach for yield» in the face of persistently low interest ratein the face of persistently low interest rates.
Yesterday, the 10 - year U.S. Treasury note reached a 3 percent yield for the first time in four years, which should have added another headwind for the three big Wall Street banks.
Market Killer When rates are low, investors reach for yield beyond what seems logical, according to a study outlined in The Wall Street Journal, which concluded that if rates rise and investors revert to less risky portfolios, equities could «be in for a big drop.»
Moreover, by keeping short - run interest rates near zero for more than seven years, paying interest on excess reserves (IOER) above the effective fed funds rate, and convincing markets that rates would stay low for a long time (forward guidance), the Fed has increased the reach for yield and appears more interested in priming Wall Street than in letting markets set interest rates and allocate credit.
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Satellite measurements and a model of how efficiently maize converts that light to mass, reveal that solar brightening, an increase in the sunlight penetrating the atmosphere and reaching Earth, accounted for 27 % of the yield increase U.S. Corn Belt farmers have observed between 1984 and 2013, researchers report today in Nature Climate Change.
Ocean coverage by floats reached 90 % by 2005 [66], with the gaps mainly in sea ice regions, yielding the potential for an accurate energy balance assessment, provided that several systematic measurement biases exposed in the past decade are minimized [67]--[69].
In the midst of all this, they long for a solution that can yield a far - reaching result and the practice of halasana benefits the individual with a calm and peaceful brain.
The report calls for action to invest in better data and demonstrates that reaching the most marginalized may initially cost more but also yields greater benefits.
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.
So, even though 30 - year mortgage rates fell for the tenth consecutive week to reach a new low of 5.01 %, the bump up in Treasury yields should be cause for concern.
But keep in mind that high yield spreads were below 4 % for much of the 2003 to 2007 period, reaching a low of 2.38 %.
With that in mind, remember that in general, reaching for higher yields means assuming greater risk.
And in this search for higher yields, we find investors are reaching deeper and deeper into lower - grade fixed - income products, which come with significant credit and interest rate risks,» says Som Seif, president and CEO of Purpose Investments, through a statement.
While reaching for yield has been successful in the past, we suggest increasing credit quality, increasing liquidity and reducing risk in an environment where the Fed's policy changes introduce a very different forward - looking outlook.
The recent elimination of foreign content rules in tax - deferred accounts, allows us to reach for yield by setting up a high - interest savings account for the cash portion.
The comment that «rates can't remain this low for long,» has been heard steadily in fixed income markets for the last 20 years as yields have continued to reach new lows.
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.
The reach for yield was best summarized in the title to a recent Barron's article «It's Not Too Late to Invest in High Yield Bonds.&ryield was best summarized in the title to a recent Barron's article «It's Not Too Late to Invest in High Yield Bonds.&rYield Bonds.»
In today's low yield environment, some investors go off course because they've become too intently focused on reaching for income.
Preferred shares have become popular in today's low interest rate environment as investors reach for higher yield.
Frankly, I don't think they matter a damn: Take note of where bond yields have actually ranged in the past few years — now if they manage to reach those levels again, why should that suddenly spell disaster for the markets?
For example, a stock yielding 5 % when you buy it will reach 10 % yield on cost in 10 years if it increases its dividend 7 % per year.
(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.
The yield on the 10 - year Treasury note — a bedrock of global financial markets — has been rising since tax legislation was proposed in the fall of 2017, and the yield reached a four - year high of 2.85 % on the day the jobs report was released.6 — 7 Although the Tax Cuts and Jobs Act was generally welcomed on Wall Street, bond traders have been concerned that increased Treasury sales to pay for the $ 1.5 trillion tax cuts will erode bond prices.
Any lower than that, and the price is either too high or the dividend growth must be lacking.There has to be an outstanding and exceptional reason for me to invest in a company with an entry yield below 2.5 %, as it will take a long time to reach an acceptable YOC (yield - on - cost).
In fact, all that has to happen is for the yield - to - maturity of TIPS to rise to 2.5 % for us to reach year 40.
In order to properly use Monte Carlo in retirement planning, dozens to hundreds of inputs need to change to reach a Real World probability number: Life expectancy, age of retirement, investment payouts, yields vs. share selling, investment returns, inflation, income goals, Social Security, all of the types of taxes, pension payouts, annual cash flow surpluses and deficits, random earned incomes, replacing vehicles every ten years, allocation mix changes over time; and then duplicate all of that for every investment individually, then for the spouse, then account for all of that compounding in every year, and the list goes on and oIn order to properly use Monte Carlo in retirement planning, dozens to hundreds of inputs need to change to reach a Real World probability number: Life expectancy, age of retirement, investment payouts, yields vs. share selling, investment returns, inflation, income goals, Social Security, all of the types of taxes, pension payouts, annual cash flow surpluses and deficits, random earned incomes, replacing vehicles every ten years, allocation mix changes over time; and then duplicate all of that for every investment individually, then for the spouse, then account for all of that compounding in every year, and the list goes on and oin retirement planning, dozens to hundreds of inputs need to change to reach a Real World probability number: Life expectancy, age of retirement, investment payouts, yields vs. share selling, investment returns, inflation, income goals, Social Security, all of the types of taxes, pension payouts, annual cash flow surpluses and deficits, random earned incomes, replacing vehicles every ten years, allocation mix changes over time; and then duplicate all of that for every investment individually, then for the spouse, then account for all of that compounding in every year, and the list goes on and oin every year, and the list goes on and on.
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 tiFor 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 tifor a long time.
Late onset and early winter ending will reduce the length of growing season for crops which will complete their biological life quickly causing reduction in yields as plants will gain accelerated maturity without reaching proper height and size.
Ocean coverage by floats reached 90 % by 2005 [66], with the gaps mainly in sea ice regions, yielding the potential for an accurate energy balance assessment, provided that several systematic measurement biases exposed in the past decade are minimized [67]--[69].
Meticulous in the filtration, leaching and preparation of 3,000 yearly samples tested for organic and inorganic matter throughout the laboratory Led laboratory studies in the leaching process of samples, writing scientific reports, and maintaining research lab operations Reached company budget goals earning a paid bonus by specializing in the analysis of contaminants in aqueous solutions, soils, biota, and hazardous waste Managed resources and fostered innovations that raised levels of health and well - being within the company, yielding unnecessary spending by 25 % Achieved fast results to satisfy the business needs of more than 20 clients increasing company profits and the cost - effectiveness for analytical measurements and services.
The catalyst for this issue is the growing recognition, both inside the scientific community and among institutions with an international reach, that investments in the earliest years yield significant returns, making early childhood development central to the peace and prosperity of society.
The catalyst for this issue is the growing recognition, both inside the scientific community and among institutions with an interna - tional reach, that investments in the earliest years yield significant returns, making early childhood development central to the peace and prosperity of society.
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