Sentences with phrase «term bond market»

Sidney Homer, legendary historian of the bond market and author of A History of Interest Rates, writes of the prevailing psychology in 1946, the last secular peak in the long - term bond market:
Still, combine the indications of the short - term bond market with today's 5 % GDP news and you get the sense that stock traders betting on low interest rates for longer periods of time may soon have to bail out.
This is why long term bond markets are telling us that real interest rates are expected to be close to zero in the industrialised world over the next decade.

Not exact matches

That data raised a fresh round of questions about how the Federal Reserve will proceed on further cutting back on its massive monthly bond purchases, which have kept long - term rates low and encouraged a strong rally on equity markets.
In the short term, the stock market will probably get a boost and bonds may take take a hit.
Today, emerging market bonds, according to different groups out there, different major broker dealers, say about three quarters of emerging market bonds are investment grade, and the market is about a trillion and a half dollars, in terms of depth and breadth.
In the short - term, however, this increased leverage may actually be bullish for junk bonds, corporate bonds, emerging market debt and mortgage - backed securities as it brings higher prices and lower yields, he said.
It buys long - term government bonds, including those with durations longer than three years, in what is dubbed «rinban» market operations.
Last fall, the B.C. government also became the first foreign government to issue bonds into the Chinese RMB market, issuing a one - year - term bond that raised about $ 428 million Canadian.
Wall Street has found a semblance of stability after a roller - coaster week, but some investors are convinced the rockiness in stocks and bonds isn't quite over for one main reason: The markets have yet to fully come to terms with how aggressively the Federal Reserve may respond to surprising economic strength.
That money, which is mostly held in short - term U.S. bonds and money market funds, was kept in Ireland for years, until an investigation by the European Union into whether the company failed to pay taxes caused it to move its holdings to Jersey, a small island off the coast of Normandy that rarely taxes corporations.
U.S. long - term rates would spike, while investors in Canada would rush to the domestic fixed - income market, setting off a bond rally that would push Canadian yields down «substantially,» said Burleton.
However, in my three decades of experience coupled with reading about markets before my time, the only strategy that I see standing the test of time is to buy solid blue chip dividend - paying stocks from diverse industries, hold them for the long term, and diversify them properly with a judicious allocation to bonds and cash.
Fetisov believes that the Russian bond market is the best option in the near term but investment in equities should also pick up throughout 2017.
«The market is paying very much attention to the dollar and bond market in terms of what the Fed is going to do.»
Yardeni, a market historian, coined the term «bond vigilantes» in the 1980s to refer to investors who sell their holdings in an effort to enforce fiscal discipline.
Bonds have historically had little correlation to equities except in market crisis situations, so creating a portfolio of both equities and bonds makes a whole lot of sense as a long - term inveBonds have historically had little correlation to equities except in market crisis situations, so creating a portfolio of both equities and bonds makes a whole lot of sense as a long - term invebonds makes a whole lot of sense as a long - term investor.
With inflationary pressures and massive budget deficits having become the topic du jour this year, the bond - market «vigilantes» term has made its way back onto trading floors.
ixed income investors are going to begin to see their long - term bond prices plummet and need to be emotionally prepared for their portfolios to lose market value.»
That market participants have finally come to terms with the Federal Reserve's normalization plans is just one of the reasons short - term bonds are finally looking attractive again after years in the doldrums, as we explain in our new Fixed income strategy A mighty (tail) wind.
The long - term implication is that investors and the public at large can have more trust in the security and liquidity of the U.S. Treasury bond market.
In addition, some investors successfully build the value of their long - term portfolios buying and selling bonds to take advantage of increases in market value that may result from investor demand.
Its underlying index selects and weights its bonds by market value, and this method yields a portfolio that aligns well with our benchmark in terms of credit tranches and maturity buckets, with the only notable difference being a slightly lower YTM.
Over the long - term the stock market has earned a better return than investing in bonds.
But that relationship has been tested over the life of this bond bull market that saw double digit interest rates fall over the past 30 + years, boosting the performance of long - term bonds.
All markets will continue to focus on the volatility in the equity and bond markets, geopolitical events, developments with the Trump Administration, corporate earnings, oil prices, and will turn to this afternoon's FOMC Meeting Statement followed by reports tomorrow on UK PMI, Eurozone PPI, CPI, US Challenger Job Cuts, Productivity, Unit Labor Costs, Jobless Claims, Trade Balance, Markit Services PMI, ISM Services, Durable Goods and Factory Orders for near term direction.
Global bonds are vulnerable due to low current yields, depressed term premia1 and the desire of developed - market central banks to unwind unconventional policies.
-LSB-...] Further Reading: A History of Bond Market Corrections What Returns Can Investors Expect in Long - Term Treasuries?
High - quality bonds protect investors during times of market stress and deflation, providing a diversification benefit with little - to - no correlation to stocks in the short - term.
We view long - term government bonds as useful diversifiers against volatility and equity market selloffs sparked by such shocks.
All markets will continue to focus on the volatility in the equity and bond markets, geopolitical events, developments with the Trump Administration, corporate earnings, oil prices, and will turn to reports tomorrow on Japanese PMI, UK PMI, US Vehicle Sales, Markit Manufacturing PMI, Construction Spending and ISM Manufacturing for near term guidance.
Viewpoints checked in with Julian Potenza, co-manager of Fidelity Short - Term Bond Fund, for his take on opportunities in this shifting bond - market landscBond Fund, for his take on opportunities in this shifting bond - market landscbond - market landscape.
Given those durations, an investor with 15 - 20 years to invest could literally plow their entire portfolio into stocks and long - term bonds, in expectation of very high long - term returns, with the additional comfort that their financial security did not rely on the direction of the markets, thanks to the ability to reinvest generous coupon payments and dividends.
What we have really seen over the past several years, in terms of the appreciation of markets and the decline of interest rates based on what the Fed has been doing, is a result which has eliminated the possibility of investors in bonds and stocks to earn an adequate return relative to their expected liabilities.
Long - term bond yields continue to extend their hostile upward trend, while other market internals continue to diverge as well.
«Between 2 % and 5 % for stocks, bonds and commodities are expected long term returns for global financial markets that have been pushed to the zero bound, a world where substantial real price appreciation is getting close to mathematically improbable.
iShares S&P ® / TSX ® 60 Index Fund («XIU»), iShares S&P / TSX Capped Composite Index Fund («XIC»), iShares S&P / TSX Completion Index Fund («XMD»), iShares S&P / TSX SmallCap Index Fund («XCS»), iShares S&P / TSX Capped Energy Index Fund («XEG»), iShares S&P / TSX Capped Financials Index Fund («XFN»), iShares S&P / TSX Global Gold Index Fund («XGD»), iShares S&P / TSX Capped Information Technology Index Fund («XIT»), iShares S&P / TSX Capped REIT Index Fund («XRE»), iShares S&P / TSX Capped Materials Index Fund («XMA»), iShares Diversified Monthly Income Fund («XTR»), iShares S&P 500 Index Fund (CAD - Hedged)(«XSP»), iShares Jantzi Social Index Fund («XEN»), iShares Dow Jones Select Dividend Index Fund («XDV»), iShares Dow Jones Canada Select Growth Index Fund («XCG»), iShares Dow Jones Canada Select Value Index Fund («XCV»), iShares DEX Universe Bond Index Fund («XBB»), iShares DEX Short Term Bond Index Fund («XSB»), iShares DEX Real Return Bond Index Fund («XRB»), iShares DEX Long Term Bond Index Fund («XLB»), iShares DEX All Government Bond Index Fund («XGB»), and iShares DEX All Corporate Bond Index Fund («XCB»), iShares MSCI EAFE ® Index Fund (CAD - Hedged)(«XIN»), iShares Russell 2000 ® Index Fund (CAD - Hedged)(«XSU»), iShares Conservative Core Portfolio Builder Fund («XCR»), iShares Growth Core Portfolio Builder Fund («XGR»), iShares Global Completion Portfolio Builder Fund («XGC»), iShares Alternatives Completion Portfolio Builder Fund («XAL»), iShares MSCI Emerging Markets Index Fund («XEM») and iShares MSCI World Index Fund («XWD»), iShares MSCI Brazil Index Fund («XBZ»), iShares China Index Fund («XCH»), iShares S&P CNX Nifty India Index Fund («XID»), iShares S&P Latin America 40 Index Fund («XLA»), iShares U.S. High Yield Bond Index Fund (CAD - Hedged)(«XHY»), iShares U.S. IG Corporate Bond Index Fund (CAD - Hedged)(«XIG»), iShares DEX HYBrid Bond Index Fund («XHB»), iShares S&P / TSX North American Preferred Stock Index Fund (CAD - Hedged)(«XPF»), iShares S&P / TSX Equity Income Index Fund («XEI»), iShares S&P / TSX Capped Consumer Staples Index Fund («XST»), iShares Capped Utilities Index Fund («XUT»), iShares S&P / TSX Global Base Metals Index Fund («XBM»), iShares S&P Global Healthcare Index Fund (CAD - Hedged)(«XHC»), iShares NASDAQ 100 Index Fund (CAD - Hedged)(«XQQ») and iShares J.P. Morgan USD Emerging Markets Bond Index Fund (CAD - Hedged)(«XEB»)(collectively, the «Funds») may or may not be suitable for all investors.
Gross pointed to the long - term success of the Total Return Fund, while acknowledging the tough year the fund saw in 2011, when it experienced significant net outflows after he bet against the bond market.
All markets will continue to focus on the volatility in the equity and bond markets, geopolitical events, developments with the Trump Administration, corporate earnings, oil prices, and will turn to reports tomorrow on Japan's Leading Index and Machine Tool Orders, German IFO, US Case - Shiller Home Price Index, New Home Sales, Richmond Fed and Consumer Confidence for near term guidance.
The rates that have responded most significantly to lower borrowing costs are short - term loans for financial speculation, above all for derivatives and related buying or selling of stocks and bonds on margin — enormous gambles on which way the dollar, the stock market and interest rates may go.
Generally, among asset classes, stocks are more volatile than bonds or short - term instruments and can decline significantly in response to adverse issuer, political, regulatory, market, or economic developments.
As long - term investments, many factors that roil the stock or even broader bond markets don't affect high yield, the panelists pointed out.
Should the yield curve steepen, with 10 - year bond yields moving above 2 % while short - term rates are anchored near zero, it would imply that a longer term inflation fear is re-entering the market.
Yet long - term government bonds are useful diversifiers against volatility and equity market selloffs sparked by geopolitical risks.
But cash isn't such a bad thing in a rising rate environment as the yield pick up rather quickly on money market accounts or you can roll some of that over into higher yielding short - term bonds.
Other bond funds focus on a narrower slice of the bond market, such as a short - term Treasury fund or a corporate high - yield fund.
Long bonds will end up being a very volatile investment at some point once rates or inflation rise from current levels, but intermediate - term bonds should continue to dampen stock market volatility.
The worst one I could find in the BC Agg (which would be an approximation of the entire bond market & intermediate term) was -13 % in the 1979 - 80 period.
Bond market geeks refer to this as a «flattening of the yield curve,» meaning that shorter - term interest rates rose while longer - term interest rates fell.
Intermediate - term bonds were up an average of more than 7 percent, earning a spread of more than 37 percent in outperformance over stocks during a bear market.
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