Sentences with phrase «where bond yields»

In an environment where bond yields are just over 4 % that's a tall order.

Frankly, I don't think they matter a damn: Take note of where bond yields have actually ranged in the past few years — now if they manage to reach those levels again, why should that suddenly spell disaster for the markets?

Sudden decreases in inflation usually cause the opposite reaction, where bond yields decline and prices increase.

Financial planner Michael Kitces notes that this is hardly the first time that retirees have faced challenging financial markets, including long periods where bond yields have been low and the stock market has stagnated or gone into a prolonged slump.

However, bond yields have been mostly driven by US developments, where bond yields appear unusually low against a background of strong growth, rising inflation and increasing short - term interest rates.

Sudden decreases in inflation usually cause the opposite reaction, where bond yields decline and prices increase.

Not exact matches

In addition to the aforementioned concerns, Golub noted fears about whether economic growth won't meet lofty expectations and signals being sent from the bond market, where a narrower gap between government bond yields is kindling fears that a recession is looming.

The bonds of iHeartMedia have long been in the basket of «distressed debt,» meaning their prices have fallen so far to where their yields are at least 10 percentage points higher than equivalent Treasury yields.

Bond yields rose to the highs of the day as Federal Reserve Chair Jerome Powell laid out a case where the Fed could raise rates more than it has forecast.

Bond yields rose after Fed Chair Jerome Powell laid out a case where the Fed could raise interest rates more than it currently forecasts.

It's the total earnings - per - share the market generates as a percent of the market's total value — a measure similar to the yield on bonds, where the yield rises when bond prices fall, and vice versa.

So while there could be one or even five year periods where longer maturity bonds perform fairly well from these yield levels, over the long - term they're likely to be a poor investment in terms of earning a decent return over the rate of inflation.

Although the yield of a 10 - year U.S. Treasury bond has risen recently to around 2.50 % — that's not too far from where it was at the beginning of 2017 (source: Bloomberg, as of 1/10/2018).

At Bear, Stearns & Co., Mr. Abbott served as a Vice President in Financial Analytics & Structured Transactions (F.A.S.T) where he structured and reverse engineered complex CDO transactions, secured by a wide range of debt products, including high yield bonds, senior secured leverage loans, trust preferred bank loans, RMBS as well as other esoteric receivables.

A huge number of sellers would be pouring into a market with a dearth of buyers, setting up a scenario where bond prices cascade and yields explode.

For example, it does not include euro bonds («reverse Yankees») that are hot in Europe, where junk bond yields are at a ludicrously low 2.35 % on average, and the high - grade yield is just above zero.

You may search for and purchase high yield bonds at Fidelity.com, where you can choose the credit rating levels appropriate for your portfolio and risk tolerance.

However, the reaction of the bond market is another story altogether, with yields on 10 - year Treasuries recently returning to about where they were when this year began.

In a country where the unemployment rate is at a 20 - year low and industrial output is approaching historical highs, fueling inflation concerns, a 10 - year government bond yield of 1.5 % is totally inappropriate and will naturally spur people to buy real estate.

The main exception to this global pattern has been Japan, where 10 - year bond yields have remained remarkably stable, generally trading in the range between 1.7 per cent and 1.8 per cent so far this year (Graph 8).

Note: HYG the $ 20bln high yield ETF yields 5.13 % in comparison, hence you might need to buy an out of favor sector like bricks and mortar retail, otherwise non-rated is likely where you will find > 7 % in the US domestic bond market.

For years, friendly debt markets have allowed issuers to push the «maturity wall» — where tons of bonds come due simultaneously across the high - yield market.

In other words bond traders look at the yield of a bond in terms of where it is trading vs. treasuries.

It will also cover the trajectory of peripheral sovereign bond yields in the face of investor uncertainty, where yields were first pushed above seven percent, and then eventually to much higher levels, forcing a rescue program.

We are also watching the US economy, where any unexpected slowdown in growth or jump in longer - dated bond yields, given the more advanced tightening campaign, could have repercussions for the European economic outlook.

Because of yield - seeking speculation, stock and bond prices today are already where they are likely to be many years from today.

According to Bloomberg data, bond yields are pretty much exactly where they started this year, while recent volatility has pushed back the likely timing of a Federal Reserve (Fed) rate hike.

Love the company, not sure I love the valuation but such is investing life these days with bond yields where they are.

Looking at periods where the price to peak earnings was above 19 and inflation and bond yields were below 2.5 percent and 4.5 percent, respectively, stocks had an average seven - year return of 6 percent.

Despite the 10 - year US Treasury bond only yielding roughly 2.2 %, that's still much higher than 10 - year Treasury bonds from countries like France (0.6 %), Germany (0.3 %), Japan (0.0 %), and Switzerland, where you actually lose money lending -LRB--0.2 %).

Low returns have followed characteristics that are more similar to today — a CAPE ratio in the mid-20's, where dividend yields, bond yields, and inflation were below average.

In cases since 1960 where the slope of the yield curve was inverted, 10 - year bond yields actually rose following the Fed's first rate cut - an average of 43 basis points over the next 12 months and 15 basis points over the next 18 months.

In Japan, where government bond yields have fallen below zero and faith in Abenomics is flagging, gold sales are soaring.

For example, in a world where short - term interest rates are zero, Wall Street acts as if a 2 % dividend yield on equities, or a 5 % junk bond yield is enough to make these securities appropriate even for investors with short horizons, not factoring in any compensation for risk or likely capital losses.

For bonds to defend against declining equity values, where do bond yields need to fall?

And so, there is this big dichotomy I think between what the Fed governors are forecasting in terms of their so - called «dot plot,» where they think interest rates are going to be and where the market is again, saying well, actually we know better, bond yields are always going to stay low.

She is a regular contributor of fixed income analysis to Saxo bank's News & Research hub where she outlined her view of bond market trends across the developed and emerging market spaces, as well as in investment grade and high - yield bonds.

Still, we've observed diminishing returns from the Fed's interventions, there is no political tolerance for the Fed to intervene in securities involving any credit risk that would be borne by U.S. citizens (purchasing European sovereign debt, for example), and the yield on the 10 - year Treasury bond is already down to 1.7 %, which is far below where it stood when prior interventions were initiated.

If we lived in a world where treasury bonds yielded 10 % and most blue - chip stocks had 2 % dividend yields and 4 % earnings yields, I'd shut the heck up about dividend stocks and start writing about the exhilarating world of fixed income that gets everyone's juices flowin».

Similarly, buying into businesses where pre-tax earnings yield was in excess of twice of AAA bond yield, and the business had a strong balance sheet was one of the key methods of Graham for identifying a bargain security.

He joined Leith Wheeler from TD Bank in January 2009, where he'd spent the previous 10 years trading a proprietary bank portfolio of credit default swaps, investment grade and high yield bonds for TD in New York and London.

Bond yields are in line if not below where the United States is, and the peripheral countries have been slowly moving in the right direction in terms of reform, some more quickly than others.

Property has bond - like qualities, in that it represents a solid asset that produces an income via rents, where the yield rises as the price falls and vice-versa (provided the rental income doesn't fall, of course).

We define intrinsic value as the amount that would accrue to the owners of a security if the underlying company were sold to a rational and well - informed buyer, or the company was liquidated with the proceeds distributed to security holders, or where the particular security sells at a price that would yield no better than a security considered ultra-safe, such as a US Treasury note or bond» Lou Simpson

Depending on where the stock market and bond market are at the time, I'd like to deploy $ 300,000 of the proceeds in low risk investments that have a high chance of producing a 4 % gross yield.

Even in a world where short - term interest rates will continue to rise as the Federal Reserve raises policy interest rates (most likely 2 — 3 times next year) and where long - term rates should rise slowly as the Fed lets its balance sheet shrink, tax - free yields should either stay the same or move down as the municipal bond world confronts a market with much less issuance.

As a bond investor, you are basically taking a view of where interest rates are going along the yield curve and the issuer's ability to pay the money promised.

With fully two - thirds of its money invested in domestic and foreign stocks, private equity and «absolute return strategies» (i.e., hedge funds), the New York State pension fund has a risky asset allocation profile typical of its counterparts across the country — because chasing risk is its only hope of earning 7 percent a year in a market where the most secure long - term bonds yield barely 2 percent.

Buying stocks where the dividend yield was at least two - thirds the AAA bond yield would have generated an average compound growth rate of 19.5 %; and

In a world where finding yield is a challenge, even a looming rate hike isn't enough to get investors particularly excited about their bond portfolios.