Sentences with phrase «tight spread low»

If the insurance company can handle the lack of incremental income, investing in higher credit quality instruments in tight spread low implied volatility environments can mitigate the risks.

Not exact matches

In addition to lower dealer inventories we've experienced tighter bid - ask spreads (which, interestingly, is a sign of the absence of dealers operating on a principal basis) as well as sharp declines in turnover.

I noted a week ago that Bernanke had essentially eased monetary policy by spurring a loosening of financial conditions via higher stock prices, lower bond yields, tighter credit spreads, and a weakening of the U.S. dollar.

When it comes to valuations, U.S. and emerging market credit spreads reached post-crisis tights in late 2017, reflecting low default risks against a backdrop of solid global growth.

We prefer to take economic risk through equities rather than credit against a backdrop of low absolute yields, tights spreads and rising rates.

The markets» low - yield environment hit the bank with tighter credit spreads, which were reflected in a $ 567 million pretax debit valuation adjustment loss.

Lower volatility and tighter credit spreads make it harder to generate income from selling related options.

There is no shortage of uncertainty in today's fixed income markets given concerns about rising interest rates, low yields, tight spreads and policy uncertainty.

In addition, in a world of low yields and tight spreads, returns to these funds are also likely to be modest, at least relative to periods when yields were much higher.

We prefer an up - in - quality stance in credit amid tight spreads, low absolute yields and poor liquidity.

We prefer to take risk in equities rather than credit, given tight credit spreads, low yields and a maturing cycle.

For example, the folks on the FOMC don't seem to understand that low interest rates and artificially tight credit spreads retard private business investment and advances in productivity.

As I've discussed in previous blogs, tight spreads and benign credit conditions support a low volatility environment, as illustrated below.

Around her were supporters of the Birmingham Jewish Federation, peppering her with reasons to stay: abundant jobs, lack of traffic, low cost - of - living, and - most important - a friendly, tight - knit community of 5,200 Jews spread among five congregations.

As I've discussed in previous blogs, tight spreads and benign credit conditions support a low volatility environment, as illustrated below.

As Tyler Mordy, president and chief investment officer at Vancouver - based Forstrong Global Asset Management, explains that the lower MER (0.09 % versus 0.12 % for VAB) was a factor, although «both funds have great liquidity and tight spreads.»

We prefer to take economic risk through equities rather than credit against a backdrop of low absolute yields, tights spreads and rising rates.

For credit markets, default rates are low, but extraordinarily tight credit spreads largely already reflect that fact.

Even if volume is low, there may be enough bids and asks to execute your trades at a tight spread.

«Our commission - free ETFs provide customers with tighter spreads and lower expense ratios, compared to the average commission - free ETFs.»

When the bid - ask spread is tight, it means that the market maker (or specialist), is comfortable that short - term volatility is low enough, that he will be able to profit from the tight spread on average.

This approach achieves near complete replication of the benchmark at the fund's inception as well as tighter bid / ask spreads and lower operating expenses than investing directly in the benchmark's constituents.

However, those with a longer - term horizon should take note of historically tight spreads, rising corporate debt and lower credit quality.

Their tight spreads and low commission rates also ensure that their traders will have the lowest possible trading cost.

Today's tight credit spreads reflect low levels of market volatility.

Lower volatility and tighter credit spreads make it harder to generate income from selling related options.

This resulted in lower relative interest rates (tighter yield spreads) for Canadian issuers than would otherwise be the case.

Yields are low, and spreads are overly tight for everything except CCC bonds.

Until recently, credit spreads had been narrowing to unusually tight levels over the past several years; low interest rates had starved fixed income investors from the yields available in years past.

When spreads were so tight, it may not have taken a very large initial sale to make the estimated prices of other bonds trade down, particularly if the sales were of lower - rated, less - traded bonds.

Although benchmark EM credit spreads are compressing to 12 month lows, favorable global liquidity conditions suggest still a slow grind tighter with few options other than the high yielding single B credits like Argentina.

A combination of factors, including tighter bond spreads, still low interest rates and issuers» growing level of comfort with risk retention rules, has been responsible for a more energized market, Trepp researchers report.

Regardless, there are many catalysts: a tight labor market, wage growth picking up, a stock market at or near record highs, housing values rising quickly, high commercial real estate prices, low cap rates and narrow credit spreads.

With low interest rates and tight CMBS spreads, we suspected that many borrowers would not wait until their 10 - year maturity dates in 2016 and 2017 to refinance, but would look to refinance as soon as they could do so freely or arrange a short - term defeasance.

But so far in 2017, CMBS issuers have had perfect conditions for lending, including tighter spreads than those seen in 2016, low interest rates, yield - hungry investors, an absence of volatility, and an ample volume of loans in need of refinancing.

The tight spreads allowed securitized lenders to write generous mortgages with low coupons and still generate handsome profits.