Investor's
search for yield continued at the very start of last week's heavy economic calendar.
Market continue to creep higher — even in light of valuations and headwinds as
the search for yield continues.
Although interest rates remain low and
the search for yield continues, after such a strong rally it is worth asking: Is it time to start selling high yield?
These returns now pale in comparison to the high yield index (S&P U.S. Issued High Yield Corporate Bond Index) as
the search for yield continues into 2014.
«Banks and life companies are still leading the way as
the search for yield continues even in the face of rising interest rates,» says Justin Bakst, director of capital markets at CoStar.
Not exact matches
The environment of
continuing monetary accommodation — necessary to support activity and boost inflation — may lead to a
continued search for yield where there is too much money chasing too few
yielding assets, pushing investors beyond their traditional habitats.
A
continued search for yield has «fueled rampant asset price growth elsewhere,» the report explains.
The
continuing low level of government bond
yields has supported the
search for yield that has been evident over the past couple of years, with the spread between
yields on US government debt and
yields on both corporate and emerging market debt remaining around historical lows over the past three months (Box B).
This means that investors who are
searching for income will
continue to need to find alternative sources, as I write in my new weekly commentary, «Back to the
Search for Yield.»
Jeff Bunder, EY global private equity leader, explains: «As pension funds and institutional investors
continue to
search for yield, they are turning to PE as they allocate more dollars to alternatives.
The first thing that jumps out at me from this Bloomberg data is the
continued search for yield.
«Investors
continue to
search for yield in today's low interest rate environment.
The possibility of interest rates remaining low means investors will
continue to
search for yield while also looking to diversify market exposures.
Ten - year German and U.S. government debt
yields stayed near historic lows below 2 percent, signaling that the intensive
search for safety was
continuing.
«Preferred shares
continue to be an extremely important asset class
for Canadian investors, particularly those
searching for attractive
yields,» said Mr. Hawkins.
One explanation
for the heightened investor activity in these cities and other tertiary Georgia markets is that, as cap rates have
continued to compress in Atlanta, many investors have gone to these areas in
search of higher
yields.
«Similar to the biggest ongoing challenges in the residential market, supply and demand imbalances
continue to put upward pressure on commercial property prices as investors
search for yield in smaller markets.
«Similar to the biggest ongoing challenges in the residential market, supply and demand imbalances
continue to put upward pressure on commercial property prices as investors
search for yield in smaller markets,» says Yun.