Sentences with phrase «reduced portfolio yields»

As a result of adverse market conditions and increased defaults on these bonds, some of these companies experienced serious financial stress and reduced portfolio yields.

Managers are said to be «buying convexity» when they shift into higher convexity bonds and possibly reducing their portfolio yield.

Not exact matches

Government bonds could help reduce default risk, but because of the length of maturity required to earn any meaningful yield, they do little to reduce duration risk - i.e. the overall sensitivity of a portfolio to interest rate rises.

While we support exposure to mortgage - backed securities (MBS) in portfolios today, some caution is warranted, as MBS may face some rising yields (and spreads) as the Fed reduces its balance sheet (along with term extension risk).

DelvoCheese SW - 250 adds to DSM's portfolio of Swiss cheese cultures, which also includes a propioni bacteria offering, enzymes, and coagulants to enable successful Swiss cheese production, reduced ripening time and increased productivity and yield to improve affordability.

One option for investors seeking to reduce their interest rate risk and increase yield, while still maintaining the overall risk profile similar to a traditional Canadian bond portfolio is the iShares Short Term Strategic Fixed Income ETF (XSI), which seeks to deliver a higher yield with reduced interest rate sensitivity.

Continuously declining long - term rates created two tailwinds for his portfolio: 1) It continuously reduced borrowing costs for highly leveraged companies; and 2) Drove up values of high yielding stocks (look at what utilities, MLPs and REITs have done over the same time period).

Recall that the main idea is to extend the maturities of your bond portfolio when yield curves steepen and reduce the maturities when yield curves flatten.

Those investors usually increase their bond holdings to reduce risk in their portfolios, but doing so in the current low - yield environment means risking not having enough income in retirement along with reduced prospects for capital appreciation.

With the aid of the low volatility screen, the S&P Access Hong Kong Low Volatility High Dividend Index exhibited more defensive characteristics with reduced return drawdown during bear market phases compared with the simple high dividend yield portfolio.

Including the lower yielding stocks in the Builder portfolio reduced the withdrawal rate from 5.64 % to 5.54 %.

Extra points if: As with the qualified charitable distribution, donating highly appreciated assets helps can help reduce risk in a portfolio at the same time it yields a tax benefit.

However, reducing the duration of a bond portfolio in such a low rate environment often results in an lower portfolio yield.

Though static allocation of VIX futures can reduce portfolio volatility and offer downside protection compared with the broad - based, unhedged S&P U.S. High Yield Corporate Bond Index, it can drag down portfolio performance significantly, due to the high cost of rolling VIX futures.

I think VYM accomplishes the same goal in a dividend portfolio — solid yield with greatly reduced risk.

Sure, yields are low but you still need to count on this asset class to provide income and reduce your overall portfolio volatility, especially given low rates, heightened global uncertainty and the threat of inflation.

High - yield bonds can help you spread assets across different segments of the financial market, reducing your risk concentration in any one asset class in your overall portfolio.

Higher TIPS yields would provide the added benefit of allowing you to lower your equity allocation, thereby reducing the risk of the overall portfolio without lowering expected returns.

The Enhanced Yield approach serves as a bond substitute, reducing portfolio volatility while delivering 9 % or so after commissions.

A Charitable Gift Annuity (CGA) can provide guaranteed income for life by providing the mature donor with lifetime payments through better yield on fixed income assets, such as CDs and bonds, and reduce portfolio risk.

Renowned for sourcing properties that offer high rental or capital yields at a low entry point, Positive Real Estate shows clients how to maximize the growth of their property portfolio without reducing their serviceability.