Sentences with phrase «volatility in bond prices»

I'm very wary that the markets may be starting to question Fed credibility, the expression of which is downside volatility in bond prices.

All else equal, volatility in bond prices from interest rate moves is higher the longer you go out on the maturity and duration spectrum and the lower the level of interest rates.

Not exact matches

Duration is a calculation, expressed in years, that measures a bond's coupon - weighted term - weighted price volatility.

If Brexit - like sentiment in other nations leads to restrictions on the flow of trade and labor, he adds, «that is going to create greater uncertainty and volatility» — at a time when some commentators believe that global stock and bond prices are overdue for a tumble.

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.

In actuality, while the skill set necessary to make intelligent decisions can take years to acquire, the core matter is straightforward: Buy ownership of good businesses (stocks) or loan money to good credits (bonds), paying a price sufficient to reasonably assure you of a satisfactory return even if things don't work out particularly well (a margin of safety), and then give yourself a long enough stretch of time (at an absolute minimum, five years) to ride out the volatility.

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.

Bonds rated below investment grade may have speculative characteristics and present significant risks beyond those of other securities, including greater credit risk and price volatility in the secondary 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.

With market volatility hitting multi-decade lows, junk bond yields also at record lows, the median price / revenue ratio of S&P 500 constituents at a record high well - beyond 2000 levels, and the most strenuously overvalued, overbought, overbullish syndromes we define, I'm increasingly concerned about the potential for an abrupt «air pocket» in the prices of risky assets that could attend even a modest upward shift in risk premiums.

Shorter time frames are most important in bonds since shortened maturities can reduce price volatility and improve liquidity.

But, over time, the longer central banks create liquidity to suppress short - run volatility, the more they will feed price bubbles in equity, bond, and other asset markets.»

A strong association between cortisol levels and price volatility as indicated by bond futures has previously been reported in financial traders27.

While base rates kept at or close to zero for almost seven years and three massive asset - buying programs by the Fed have undoubtedly helped stabilize the US (and world) economy during and after the recession that followed the global financial crisis, the continuation of expansionary monetary policies is now supporting a growing excess of global liquidity that has been distorting the market signals sent by stock and bond prices and thus contributing to the growing volatility seen in recent weeks.

Central bank bond - buying measures in most of the world have helped to increase liquidity, support asset prices, and smooth volatility.

High yield bonds (bonds rated below investment grade) may have speculative characteristics and present significant risks beyond those of other securities, including greater credit risk, price volatility, and limited liquidity in the secondary market.

Investments in high - yield («junk») bonds involve greater risk of price volatility, illiquidity, and default than higher - rated debt securities.

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 tomorrow's much awaited US Payroll Report for near term direction..

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 Commitment of Traders Report, followed by reports Monday on Chinese PMI, German CPI and Retail Sales, US Personal Income, Personal Spending, PCE, Chicago PMI, Pending Home Sales, and the Dallas Fed's Manufacturing Index for near term direction.

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 earnings from Apple after the bell today, and reports tomorrow on Japanese PMI, Chinese Caixin PMI, Eurozone GDP, PMI, Unemployment, US MBA Mortgage Applications, ADP Employment Change, Oil Inventories, and the FOMC Meeting Statement for near term direction.

What also is not too surprising is that with the initial volatility we've seen in bond prices since May, retail investors have hit the sell button with little hesitation.

The volatility we are seeing in bond prices is a result of lack of clarity and specifics.

Bonds experience price volatility in response to various factors.

This means that investors in high yield municipal bond funds should be willing to accept much higher volatility in both the share price of the fund and the income stream that it provides.

Secondly, they are lower volatility, which means that investors can cash in their holdings more regularly without having to worry about the price actions in the bond market.

Then, as implied volatility fell, credit spreads did as well, and the prices of our bonds rose, so in the spring of 2002, we reversed the trade and then some.

In general, stocks are subject to greater price fluctuations and volatility than bonds and can decline significantly in value in response to adverse issuer, political, regulatory, market, or economic developmentIn general, stocks are subject to greater price fluctuations and volatility than bonds and can decline significantly in value in response to adverse issuer, political, regulatory, market, or economic developmentin value in response to adverse issuer, political, regulatory, market, or economic developmentin response to adverse issuer, political, regulatory, market, or economic developments.

Recently at a panel discussion that I participated, one topic we talked about was if the bond price volatility in Asia is an obstacle to the investors.

At the same time commodities, with relatively lower volatility in its pricing compared to equity and bonds, provides an equally effective option in portfolio diversification.

It is invested primarily in the credit market, not so much in government bonds because government bond yields are so low, but we're looking for absolute returns even if interest rates go up, so some of the portfolio, a significant piece of it actually, is floating rate, so if interest rates go up, you just get higher cash flows, which will support higher returns, and the rest of the portfolio is in relatively short maturity bonds, which will have some price volatility and if there's bad market conditions, will have temporary losses, so the goal is to offer something that is absolute returns.

Invests in longer - maturity bonds than many peers, which may provide higher levels of tax - exempt income1 and greater price volatility.

What also is not too surprising is that with the initial volatility we've seen in bond prices since May, retail investors have hit the sell button with little hesitation.

Investments in high - yield («junk») bonds involve greater risk of price volatility, illiquidity, and default than higher - rated debt securities.

The volatility we are seeing in bond prices is a result of lack of clarity and specifics.

Improving High - Yield Bond Portfolio Returns Investors in corporate credit, especially high - yield bonds, tend to face shorter cycles of booms and busts than do government bond investors, and therefore have more frequent opportunities, as a result of year - over-year price volatility, to advantageously position their portfolBond Portfolio Returns Investors in corporate credit, especially high - yield bonds, tend to face shorter cycles of booms and busts than do government bond investors, and therefore have more frequent opportunities, as a result of year - over-year price volatility, to advantageously position their portfolbond investors, and therefore have more frequent opportunities, as a result of year - over-year price volatility, to advantageously position their portfolios.

In the 15 - year period through 5/31/2015, stocks exhibited 4 times the amount of price vacillation (a.k.a. volatility) than bonds.

But, there is volatility in the prices of bonds and stocks which increase the risk of an investor.

An investment in high yield stock and bonds involve certain risks such as market risk, price volatility, liquidity risk and risk of default.

Duration takes into account a bond's interest payments in measuring bond price volatility and is stated in years.

Stresses in the repo market are amplifying price swings in government bonds and related debt markets at a time when many investors are reshuffling their portfolios around new interest - rate expectations, following a period of low volatility, traders and analysts...

In fact, when volatility is priced into that investment opportunity, whether it is a bond or an equity, but I'll stick to equities, because that's my area of expertise, that actually you can generate some very good rates of return indeed with very low risk.

The lack of volatility in the equity, bond and currency markets has brought traders to the cryptocurrency markets which has helped generate whipsaw price action.

In turn, credit rating firm Moody's helped price the instrument by providing data to generate yield curves and price the volatility of ethereum into the structure of the bond itself.