Sentences with phrase «think high yield bond»

Not exact matches

Bond fund managers Jeffrey Aronson, Michael Vranos, and Boaz Weinstein discuss why they think high - yield market is showing signs of a bubble.

I sent out to some people last Wednesday why I thought the CDS market would outperform ETF's, and that is still my view, and has a lot to do with the bonds that make up the high yield index and their rate risk exposure for some, and horrible convexity for others.

I still think there will be a flight to safety in sovereign bonds when stocks have a bear market but other areas such as high yield and corporate debt could run into some problems.

And I think that given higher volatility in the markets, going into higher yielding bonds or stocks, the risker ones, is unadvisable.

I was thinking of dividing into thirds adding the Vanguard High Yield Corp Bond Fund and The Intermediate Term Investment Grade.

, but I think it's a mistake for risk averse or diversified investors to completely give up on high quality bonds because they're worried about poor returns from low yields.

Although decades of history have conclusively proved it is more profitable to be an owner of corporate America (viz., stocks), rather than a lender to it (viz., bonds), there are times when equities are unattractive compared to other asset classes (think late - 1999 when stock prices had risen so high the earnings yields were almost non-existent) or they do not fit with the particular goals or needs of the portfolio owner.

If investors think the economy will be bullish over the next decade, they will require a higher yield to keep their money tied up in bonds.

He thinks Chinese high - yield instruments have seen their run but is shifting his attention to investment - grade bonds in China.

Bond yields would then be fair relative to equity yields, assuming that the current high operating profitability continues, which is not guaranteed, though I think it will persist long enough to embarrass those who say it must mean - revert imminently.

If you think bond yields will normalize higher, perhaps cash is the place you would rather be for now.

There are several that hold high - yield bonds and emerging market debt, but I'm thinking of something more conservative, such as a fund that invests in the sovereign debt of developed countries.

If you are thinking about investing in high - yield bonds, you will also want to diversify your bond investments among several different issuers to minimize the possible impact of any single issuer's default.

Just think back to September 2015, when large high - yield bond issuer Sprint was downgraded several notches, spurring a furious selloff that bled into broader markets.

We love high yield corporate bonds; they pay a lot more interest than treasuries and also because these are not the greatest borrowers — I'm not talking little companies; think CitiBank and other very big companies that don't have a pristine credit rating — they can not lend money out very long so the maturities of our high yield bond fund is closer in.

We thought they would widen, so we allocated down from high - yield bonds in June.

I think Markel has a pretty asset sensitive balance sheet, meaning that eventually I think higher rates will improve earning power as they reallocate into higher yielding bonds.

Think of 1979 - 82: by the time bond yields were nearing their peak levels, bond managers were making money in nominal terms with rates rising because the income from the coupons was so high, and it set up the tremendous rally in bonds that would last for ~ 30 years or so.

If we think of common stock as a bond then common stock has essentially paid a 12 % average annual coupon over the last 30 years while high yield bonds have only paid about a 8 % coupon.

Beyond bonds, you are not alone if you are looking at the table and thinking about reaching for higher yields through bank loans.

This prompted us to think that VIX futures may hold tail - risk hedging opportunities for high yield bond portfolios.

Luke @ Learn Bonds writes My Thoughts On High Yield Bonds — High yield bonds have been referred to as «junk bonds,» but that is not the Bonds writes My Thoughts On High Yield Bonds — High yield bonds have been referred to as «junk bonds,» but that is not the Yield Bonds — High yield bonds have been referred to as «junk bonds,» but that is not the Bonds — High yield bonds have been referred to as «junk bonds,» but that is not the yield bonds have been referred to as «junk bonds,» but that is not the bonds have been referred to as «junk bonds,» but that is not the bonds,» but that is not the case.

Stocks were seen as speculative so it was natural to think that they had to have higher yields than bonds.

What do you think of high yield bonds?

Nonetheless, when I talk about an investment, you might start thinking of a major and high yielding investment like bonds, stocks among others.

If you think that bond yields are going higher, these stock prices will go lower.

If you're really a long - term investor (10 + years), the historical ERP has been so high and current bond yields are so low that it takes a rather irrational level of risk aversion to own bonds, unless you think the ERP is wrong and / or there's a substantial risk of deflation.