Sentences with phrase «risk at a lower yield»

Market indicators suggest that investors believe the relative risk of insuring the underlying credits in nearly every sector has dropped, or that these underlying credits are willing to take on more risk at a lower yield.

Not exact matches

debt obligations of the U.S. government that are issued at various intervals and with various maturities; revenue from these bonds is used to raise capital and / or refund outstanding debt; since Treasury securities are backed by the full faith and credit of the U.S. government, they are generally considered to be free from credit risk and thus typically carry lower yields than other securities; the interest paid by Treasuries is exempt from state and local tax, but is subject to federal taxes and may be subject to the federal Alternative Minimum Tax (AMT); U.S. Treasury securities include Treasury bills, Treasury notes, Treasury bonds, zero - coupon bonds, Treasury Inflation Protected Securities (TIPS), and Treasury Auctions

The real risk for bonds, especially at these low yield levels, will almost always come from inflation.

With market volatility hitting multi-decade lows, junk bond yields also at record lows, the median price / revenue ratio of S&P 500 constituents at a record high well - beyond 2000 levels, and the most strenuously overvalued, overbought, overbullish syndromes we define, I'm increasingly concerned about the potential for an abrupt «air pocket» in the prices of risky assets that could attend even a modest upward shift in risk premiums.

4 - 5 % on munis is definitely a nice yield at a very low level of risk.

Although a total of $ 800,000 in real estate crowdfunding sounds like a lot, I view it as buying a $ 800,000 portfolio of 12 + different properties across the country at much lower valuations and much higher net rental yields compared to having $ 2,740,000 in one very expensive rental property in San Francisco that is now at risk of depreciating due to declining rents and new tax legislation that limits mortgage interest deduction and SALT deduction.

When yields are too low, and acceptable risk spreads so narrow that top - line interest revenue is increasingly marginalized, then lending is at risk.

Interest rate risk is worth considering since volatility is heightened at lower yield levels.

This is evident in a number of developments, including: increased demand for higher - risk assets; the increase in «carry trades» — a form of gearing where funds are borrowed short - term at low interest rates and invested in higher - yielding assets, often in other countries; growth in alternative investment vehicles such as hedge funds; and growth in alternative investment strategies such as selling embedded options (see Box A).

If banks would look at their overall portfolio and invest money with «safer» investments (for example, infrastructure projects, with government backing), they will have lower yields on those investments, and probably make less money, however it would be more guaranteed money and less risk.

If you want to build a high yield, low risk portfolio of shares then take a look at these free resources or read my book, The Defensive Value Investor.

Depending on where the stock market and bond market are at the time, I'd like to deploy $ 300,000 of the proceeds in low risk investments that have a high chance of producing a 4 % gross yield.

«We think the recently lowered dividend payout is sustainable, providing investors with an attractive 6 per cent fully franked yield at current prices... we view the risks facing Telstra as more than reflected in the current stock price, trading at 12 times forward earnings per share and 5.5 times earnings before interest, tax, depreciation and amortisation,» the analysts said.

Contrarian strategies (low Price / Earnings, low Price / Book Value, low Price / Cash Flow and high dividend yield) consistently outperform alternatives at a greatly reduced risk.

That is not a 100 % probability (otherwise the bond would trade at a higher price / lower yield to reflect the lower risk).

These types of low - rated bonds are the same as the high - yielding and speculative bonds, because they carry the highest risk and can bring the highest return on investment, if they are paid back at maturity.

Rising rates could, over time, help restore the attractiveness of lower - risk government and shorter - duration debt — at the expense of more richly valued credit sectors that have benefited from the hunt for yield in recent years.

A traditional static indexing approach leaves an investor overweight the riskiest assets at the riskiest times and underweight those low risk higher yielding assets when their returns are likely to be highest.

«Psychologically, 3 per cent was the level at which clients wanted to achieve a yield while taking a medium level of risk, particularly as the base rate has been at historic lows,» Hooper says.

Generally avoid stocks with the highest yields because often that indicates the dividend is at risk and growth prospects are low.

At the same time, and ordinary investment in a basket of lower investment grade and high yield bonds offers a nice return for those willing to live with some default risk, which is over-discounted here, even with things as bad as they are.

Besides, as this research shows, even at today's low yields bonds remain an effective way to hedge equity risks and diversify your portfolio.

I decided to write this article this night because I decided to run my bond momentum model — low and behold, it yelled at me that everyone is grabbing for yield through credit risk, predominantly corporate and emerging markets, with a special love for bank debt closed end funds.

The Fed can keep the Fed funds rate low, but aside from the strongest borrowers, the yields that lesser borrowers borrow at are high, and reflect the intrinsic risk of loss, not the temporary provision of cheap capital to banks and other strong borrowers.

USD JPY Tumbles as Return of Risk Aversion Rocks the Markets The USD JPY reversed its four day rally as traders sought safety in lower yielding assets following an announcement by President Obama to curb trading at financial institutions.

General Mills is likely fairly valued at this time given its future growth prospects, high yield, and low risk (in relation to most other stocks).

Since the term risk of a good direct 5 - year CD already is so low, there's not much point in buying shorter - term CDs at lower yields to reduce term risk.

In the first video in this series, I told you why high - yield bonds fall short on a risk adjusted basis, and should only be included in your portfolio in small amounts through a well - diversified low - cost ETF, if at all.

Therefore, a truly undervalued blue - chip with a higher yield than a fully valued, or even moderately overvalued comparable blue - chip, may actually be the lower risk choice at that time.

Canadian bond investors should be able to obtain lower default risk for their portfolios at higher yields by investing in foreign issuers.

If you want to build a high yield, low risk portfolio of shares then take a look at these free resources or read my book, The Defensive Value Investor.

It is at that point that a good bond manager tosses as much risk as he can overboard without bringing yield so low that his client screams.

Investors in «risk - free» US Treasuries at historic lows would have to extend out 30 years to get a return of 3.11 %, a yield still lower than the yield in the above funds.

If a company's financial health worsens over time, investors in the bond market will adjust to the increased risk and trade the bonds at lower prices and therefore at higher yields.

The yields right now are very low but I'm OK with this because it's risk free (if and when our balance ever exceeds $ 100 k we will open an account at another branch, or open individual savings accounts, etc. so as to qualify for full CDIC protection)

Many investors snapped these CDOs up because they thought that they were getting higher yields at a lower risk, but Paulson was selling them because his firm knew that they would eventually go bad.

Bond yields represent the benchmark for what capital should cost a bank at the lowest level of risk.

Yields on callable bonds tend to be higher than yields on noncallable, «bullet maturity» bonds because the investor must be rewarded for taking the risk the issuer will call the bond if interest rates decline, forcing the investor to reinvest the proceeds at lower yYields on callable bonds tend to be higher than yields on noncallable, «bullet maturity» bonds because the investor must be rewarded for taking the risk the issuer will call the bond if interest rates decline, forcing the investor to reinvest the proceeds at lower yyields on noncallable, «bullet maturity» bonds because the investor must be rewarded for taking the risk the issuer will call the bond if interest rates decline, forcing the investor to reinvest the proceeds at lower yieldsyields.

At lower latitudes, especially the seasonally dry tropics, crop yields are likely to fall - even for small temperature increases, increasing the risk of hunger.

Other major climate impacts at 2 degrees Celsisus include severe threats to coral reefs across the globe, a greater risk of long lasting heat waves and extreme rainfall events, and the risk of lower yields for key crops like wheat in the globe's tropical regions.

The relationship between depressive symptoms and step count has only been assessed in specific populations with small sample sizes, such as low - socioeconomic status Latino immigrants, 16 elderly Japanese people17 or patients with chronic conditions such as heart failure18 19 or chronic obstructive pulmonary disease.20 21 Studies yield contradictory results, with some observing no association between depressive symptoms and daily step count, 19 21 while others report a negative correlation.16 — 18 20 In one cross-sectional sample of healthy older adults, an inverse association between depressive symptoms (using the Goldberg Depression Scale - 15) and accelerometer measured daily step count disappeared after controlling for general health and disability.22 While a systematic review suggests reduced levels of objectively measured PA in patients with depression, 23 it is not known whether this association is present in those at high risk of CVD and taken into account important confounding such as gender and age.

«I don't think the yields the old REITs were achieving were any higher, but we're now doing it at dramatically lower leverage levels and risk.»