Sentences with phrase «when yields decline»
That being the case, bonds — like stocks — can be expected to trade in a very wide trading range for some time, and we'll tend to extend our durations on further spikes in yields, while contracting them when yields decline significantly.
http://www.scottsinvestments.com/ Not exact matches
The retailer has a very decent probability of going into bankruptcy or experiencing further declines, yet the bonds are still yielding 11.4 % when they should be yielding much more given the inherent risk in the position.
10 - year Canadian government bond yields had declined to as low as 0.90 % during mid-February, when recession fears hit an apex but ended the quarter at just over 1.2 %.
Conversely, when the price of a bond goes up, the effective yield declines.
When downgrades occur, the yields of fallen angels tend to rise dramatically while their prices decline.
CORPORATE FINANCING NEWS: CORPORATE DEBT By Gordon Platt US interest rates have been in a general declining trend since 1981, when Paul Volcker was Federal Reserve chairman and the 10 - year Treasury bond yielded 16 %.
In FY 2017, spending would remain nearly flat, rising to $ 1.070 trillion in FY 2017 (yielding a small decline when adjusting for inflation).
«Migration [is] one of several options rural households face when they confront diminishing livelihoods such as a decline in crop yields.»
10 - year Canadian government bond yields had declined to as low as 0.90 % during mid-February, when recession fears hit an apex but ended the quarter at just over 1.2 %.
In 2001 when the smoothed yield curve flattened, but didn't invert, World EPS again declined by more than 10 percent.
When a taxable ETF stock's dividend yield declines to less than 5 %, it's time to seriously think about why one should continue to maintain a position in that stock.
We'll talk about the price decline later, but for now note that all else equal, when a stock's price declines, its yield goes up.
Reinvestment risk is more likely when interest rates are declining and affects the yield to maturity of a bond, which is calculated on the premise that all future coupon payments will be reinvested at the interest rate in effect when the bond was first purchased.
Generally, when inflation is falling bond and earnings yields also decline.
Another easily observable generalization is the higher the dividend yield when dividends are reinvested, the less the number of years to recover from a price decline.
For instance, when asset prices are rising, yields are falling and future expected returns are declining, the efficient frontier may shift downward for assets across the board.
It's just what happens when yields on stocks and bonds decline.
When interest rates rise, high yield stocks values decline as their yields become less attractive due to higher interest rates.
Flat Yield Curve - This curve indicates the yields of bonds with different maturities are relatively constant, and is seen when interest rates are expected to decline moderately but offset by positive term premium.
When interest rates rise, high yield stocks will see their values decline more than dividend growth stocks.
In a rising interest rate environment, it is risky to have investments tied up in longer - term bonds when their value has yet to decline as a result of higher yields over time.
As explained by Charles Schwab Investment Management, and covered in a recent PlanSponsor article, [1] maintaining a given yield level implies adding credit risk when interest rates decline.
Performance could be particularly poor during risk - averse, flight - to - quality environments when high yield bonds commonly decline in value.
For example, in 1990, when the U.S. GDP went into a decline that lasted three consecutive quarters, the principal value and the total return of high - yield bonds declined significantly.
In general, high - yield bonds tend to produce attractive total returns when the economy is growing and interest rates are stable or declining.
When the stock market is in an overall decline, dividend yields will typically rise as stock prices fall.
Temperature declines this much when greenhouse - gas concentrations fall this much; this amount of renewable energy, efficiency, nuclear, and CCS yields this decline in emissions; that sort of thing.
For corn, small long - term average temperature increases will shorten the duration of reproductive development, leading to yield declines, 4 even when offset by carbon dioxide (CO2) stimulation.5, 6 For soybeans, yields have a two in three chance of increasing early in this century due to CO2 fertilization, but these increases are projected to be offset later in the century by higher temperature stress7 (see Figure 18.2 for projections of increases in the frost - free season length and the number of summer days with temperatures over 95 °F).
When it comes to climate change science it seems like each new week brings a fresh study showing how much crop yields are going to decline, how much less water many places are going to have, how quickly sea level rise is going to happen, how many more infectious diseases are going to spread, et cetera, et cetera.
For example, If yields start to decline when crop growth is 30 % higher, yields have to decrease 19 % before we back to 400 PPM productivity and actual harm is started.
The larger number of REITs means there are more entities chasing the relatively static supply of good apartment projects that come up for sale, thus raising prices at a time when yields are declining.