Sentences with phrase «rising bond spreads»

His view is that rising bond spreads imply economic weakness, and hence stock prices should see weakness as well.

Not exact matches

Portugal has been profiting from lower bond yields, but as the ECB is expected to gradually lower its government bonds purchases, yields and spreads are expected to rise, which could hamper the improvement in government finances.

Ten - year Italian bond yields have risen 17 basis points to 4.55 percent, since the news of an uncertain outcome spread on Monday but the Italian treasury is going ahead with a sale of 6.5 billion euros ($ 8.5 billion) of 5 and 10 - year bonds on Wednesday.

Meanwhile, the spread between riskier «junk» corporate bonds and «risk - free» U.S. Treasurys has dropped since the election even though interest rates generally are rising.

As bond yields rise the spread between the two narrows, prompting asset allocation changes between equities and fixed income.

Nobody is really talking about it but, with the Fed tightening this week amid rising corporate bond spreads, Ray Dalio's 1937 analog continues to rhyme.

Fixed income, rising (or falling) yields, junk bonds, Fed tightening, TIPS, spreads, mortgage - backed securities — there's no shortage of jargon for this supposedly «boring» investment that most of us own in our portfolios.

Over time, this suggests rising bid - ask spreads relative to past levels for more illiquid assets, such as corporate bonds, to help market - makers cover their operating costs.

The recent widening of this spread is, of course, much smaller than was seen in 1994 in the previous episode of globally rising bond yields, when the yield on 10 - year bonds in Australia moved from 1 percentage point to about 3 percentage points above the comparable US yield.

The more pronounced movements in longer - term bond yields saw the spread between the yield on 10 - year bonds and the cash rate rise in net terms over recent months to around 65 basis points.

While strong fundamental factors are driving recent growth in the non-government bond market, some commentators have ascribed the timing of some issues to borrowers «getting in» ahead of Y2K, behaviour which would also have contributed to rising spreads.

The net rise in Australian long bond yields over recent months has been less than in corresponding US yields, so the spread between Australian and US yields has narrowed.

This is a little larger rise than the move in US bond yields in the same period, resulting in a small widening in the spread to US bonds.

In reaction to the polls, the spread on French five - year government bonds rose to its highest level since the eurozone debt crisis.

They can get over 4 % fixed from 10 - year UK government bonds — a huge spread over short - term rates, but still not very attractive compared to 3.25 % from the FTSE 100, given that dividend income should rise over time.

For example, based on our analysis using J.P. Morgan index data, the EMBIG index's 7.25 percent performance in 2014 is owed to a -0.35 percent spread return combined with a 7.6 percent Treasury return, as U.S. rates dropped significantly (remember that when interest rates fall, bond prices rise, and vice versa).

Major equity markets have risen further, and appetite for risk has increased, with spreads on corporate and emerging market bonds falling to levels not seen for several years.

Spreads between yields on highly - rated corporate bonds and government bonds rose slightly over the past three months (Graph 54).

This is in contrast to US and European markets, where corporate bond spreads to swaps have risen over the period.

Then, as implied volatility fell, credit spreads did as well, and the prices of our bonds rose, so in the spring of 2002, we reversed the trade and then some.

This leads the corporate bond market default in tandem with rising credit default swaps spreads.

Surprise, as the anticipated future financing rates rise, the willingness to try to clip a spread off of long bonds declines.

Finally, for a bond - only portfolio, the penalty rose by 0.22 % per spread month to reach a maximum of just over 2.5 %:

But the Fed is not so sure, and officials note that corporate bond spreads have narrowed over U.S. Treasuries, and that although mortgage rates have risen, they are still low.

Fixed income, rising (or falling) yields, junk bonds, Fed tightening, TIPS, spreads, mortgage - backed securities — there's no shortage of jargon for this supposedly «boring» investment that most of us own in our portfolios.

Also, the yield spread between U.S. Treasuries and corporate bonds has tightened, meaning credit offers thinner insulation against rate rises.

I just had a theory on why it might be that VRM / BoC spread is rising much more than the FRM / bond spread.

With so many investors flocking to junk bonds, their prices have risen - pushing down their interest rates and narrowing the spread between risky and safer bonds.

And even if corporate defaults rise to 4 - 5 %, as many are predicting, current bond spreads would still support investing.

What goes through your mind when you look at the rising spreads on high yield bonds?

This will sound weird, but I am not as much worried about government bond rates rising, as I am with credit spreads rising.

Now here is my question to readers: aside from buying long Treasury bonds, what investments can you think of that benefit from rising implied volatility and credit spreads, aside from options and derivatives?

This includes hedging techniques, such as using futures, options and swap spreads to speculate on rising (or falling) rates along certain parts of the yield curve, or on specific bond classes or credit ratings.

It was notable that Government bonds underperformed corporate bonds by a healthy margin as credit spreads stabilized and government yields rose.

As bond prices rise, fixed rates will also rise and the spread between the two reflects the risk investors are willing to take when they move their money from a secure product, like bonds, to invest in a less secure investment, such as mortgage securities.