Sentences with phrase «spread over government bonds»
For «A» rated corporates, the spread over government bonds of comparable maturity is currently about 100 basis points, which is noticeably wider than a couple of years ago (Graph 32).
https://www.rba.gov.au/ Not exact matches
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).
The cash yield on the iShares CDN REIT Sector ETF (TSX: XRE) is approximately 5.45 %, a spread of less than 2 % over the 10 - year Government of Canada bond, which is currently yielding 3.55 %.
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.
Such tight spreads mean that even a small selloff can wipe out credit's extra income over government bonds.
Abstracting from changes in the composition of corporate bond indices, spreads between yields on government and corporate bonds have shown a small net decline over the past three months (Graph 48).
Spreads between yields on highly - rated corporate bonds and government bonds rose slightly over the past three months (Graph 54).
But the boom in equity markets has driven down their «spread» over government bonds to the lowest level since before the 2008 — 09 financial crisis.
The cash yield on the iShares CDN REIT Sector ETF (TSX: XRE) is approximately 5.45 %, a spread of less than 2 % over the 10 - year Government of Canada bond, which is currently yielding 3.55 %.
In contrast, fixed reset dividends are typically based on spreads over five - year government bonds, then reset after five years based on interest rates that prevail at that time --- making them less sensitive to increasing rates.
While the spreads of the yield curves have converged over time, some spread differences continue — e.g., 3 bps for a 5 - Year Chinese government bond and higher for shorter - maturity bonds.
To be sure, asset classes such as bank loans, high - yield bonds, and emerging market debt require the investor to bear credit risk, but the yield spread over the comparable - maturity government bond provides compensation for this risk.