«We've
seen debt yields compress in the past 60 days for well - located retail properties to below 8.5 percent,» says DuMars.
Not exact matches
Given Osiris's strong five - year record of growth and profitability, Bowers was able to help make Miller's wishes come true: he structured a deal that raised $ 13 million from a large local pension fund — the Pennsylvania Public School Employees Retirement System (
see «What Pension Funds Want,» [Article link]-RRB--- by selling a package of subordinated
debt and convertible preferred stock, which included a fixed interest rate and dividend
yield.
yields will hit the highs on close end of the day... equity markets setting up to be slammed tomorrow maybe but today they have run over weak shorts in the face of rates... the federal reserve
see's this and again will wonder if they are behind on hikes, strong data, major expansion in credit, lack of wage growth rising bond
yields and ballooning
debt... rates will go much higher and equities will have revelations as to what that means for valuations
Treasury prices rise, pushing
yields lower, on Monday after solid appetite for two batches of government
debt auctions
see strong bidding, ahead of what's set to be a deluge of sales of government
debt in 2018.
And in the face of record valuations and record
debt, we're
seeing rising interest rates (the
yield on the 10 - year Treasury hit 3 % last week for the first time since 2014) and other signs of inflation like rising oil and copper prices.
As you can
see in the chart below, one of the portfolio's strengths is the freedom it has to go beyond traditional sources of income and pursue nontraditional income sources — such as ETF exposure to bank loans, preferred stock, and emerging market
debt — in order to seek
yield.
As you can
see from this graph the divergence between high
yield debt and the S&P 500 has never been greater.
According to Bloomberg data, EM
debt is offering
yields of above 4 %, and despite a strong year - to - date performance (more than 13 %), we
see potential for significant income with lowered spread risk, given the diminished expectations of a near - term Fed move.
This is especially true on the downside because high
yield investors typically are «privy» to bank credit information — trust me, this is true, as our high
yield desk was next to the bank
debt trading desk and we were very friendly with each other — and can
see when corporate numbers are deteriorating well in advance of equity analysts and investors.
Since the aftermath the financial crisis, we have become used to
seeing Treasuries as a rare commodity as the Fed has been massively buying part of this
debt, pushing Treasury
yields downwards.
In recent months, the
yield on US corporate bonds, especially investment - grade securities, is a little more than 100 basis points compared to the
yield on government
debt, dropping within striking distance of the lows
seen post the 2008 financial crisis.
The cost of financing those
debts is rising fast, with the recent sell - off in Portuguese sovereign bonds pushing
yields to levels not
seen since October 2014.
This
saw yields on Japanese government
debt rise steadily in March and April to around 1.5 per cent, 30 basis points above their mid-February low.
And for much of the year the world has
seen a new phenomenon: negative
yields on as much as $ 13 trillion in outstanding
debt (primarily sovereign).
We have
seen an expansion of global high -
yield debt issuance, particularly in European and emerging markets during this cycle (as shown in Exhibit 1).
We
see investment - grade corporate
debt as attractive in a world hungry for
yield.
While the President seeks to exaggerate our
debt, we
see major investments in the future of our country.Investment that would
yield dividends for many years to come and benefit generations yet unborn.
However, in recent times the scheme's performance was subdued owing to some volatility
seen in
yield of
debt instruments.
«We've also
seen the compression of spreads on high -
yield debt, which certainly looks like a reach for
yield type of...
As of the first quarter of 2012, Turkey had a public
debt balance equal to 43 % of annual GDP, making it one of the better financed governments in all of Europe (
see how the fiscal strength of many emerging markets like Turkey in High
Yield International Bond ETFs can deliver strong returns with low correlation).
Indeed, in the event of a near - term expectation of
debt default, we would probably
see 1 - year Greek
yields spiking above 40 %, and 3 - month
yields well above 100 % annualized (which would be associated with 3 - month bills trading well below 85 % of face).
While CDS rates reflect concerns about Japan's fiscal condition, low bond
yields show that investors
see a dearth of viable alternatives to Japanese government
debt.
We
see investment grade
debt as attractive in the tradeoff between
yield and risk.
The book follows around
debt collectors and those associated with them, a colorful bunch, who
see their
see their opportunities flow and ebb as the financial crisis first produces a lot of bad
debts to work on, and they mine that ore until the
yields get poor.
We can
see this dynamic at play in the figure below, which looks at the correlation between the amount of money flowing into risky assets (emerging markets, high
yield debt) and the balance sheets of the four largest central banks.
A decision not to raise the
debt ceiling south of the border could
see interest rates there rise while Canadian
yields could drop, Erica Alini cited CIBC economist Avery Shenfeld as saying.
Meanwhile, fixed rate high
yield bonds tracked in the S&P U.S. Issued High Yield Corporate Bond Index, which have a longer duration than floating rate debt, have seen a negative 1.51 % return in June so
yield bonds tracked in the S&P U.S. Issued High
Yield Corporate Bond Index, which have a longer duration than floating rate debt, have seen a negative 1.51 % return in June so
Yield Corporate Bond Index, which have a longer duration than floating rate
debt, have
seen a negative 1.51 % return in June so far.
As a result of the downgrade, the prices of the company's bonds decline and
yields increase, making the
debt attractive to contrarian investors who
see low oil prices as a temporary condition.
Any recession in the next five years will
see the vast majority of corporations issuing new
debt in an environment where their coupons will be at higher
yields and their total total
debts will be more difficult to service.
They
see companies issue
debt below their dividend
yields and don't understand why there's a market ther, because they are thinking «retail» and not «institutional.»
See our posts 3 Ratings Agencies On Argentina: Still Junk Bonds,
Yield Mania: Record Emerging Market
Debt Inflows, Argentina A Fave, 3 Experts: What's Next For Argentina Economy, Investments?
Trading near its five year low with a dividend
yield of over 4 %, no
debt and over $ 500 million in cash, I don't
see why this stock isn't trading in the $ 15 - $ 20 range.
In a recent transaction, we were
seeing 30 % on a funded
debt yield basis and a loan to value of 50 %.