Sentences with phrase «with bonds spread»

Not exact matches

But, what typically happens in this cycle, is interest rates start to accelerate, leading credit spreads — essentially the gap between how much more of a return bonds provide compared with US treasuries — to compress.

In this regard, our surveillance has been closely monitoring for any signs of liquidity strains associated with the recent increases in spreads for high - yield corporate bonds, as well as for idiosyncratic events affecting particular funds in this segment, such as the events surrounding the abrupt closing of Third Avenue Management's Focused Credit Fund last December.

Ten - year Italian bond yields have risen 17 basis points to 4.55 percent, since the news of an uncertain outcome spread on Monday but the Italian treasury is going ahead with a sale of 6.5 billion euros ($ 8.5 billion) of 5 and 10 - year bonds on Wednesday.

Bonds due in 2018 and won by BofA were «aggressively» priced with a 1.64 percent yield that narrowed Illinois» spread over Municipal Market Data's benchmark triple - A yield curve to 70 basis points from 100 basis points ahead of the sale, Greg Saulnier, a MMD analyst, said.

BofA won bonds due in 2029 with a yield of 3.78 percent, which slightly increased the spread over the scale to 165 basis points from 163 basis points, according to MMD, a unit of Thomson Reuters.

So unlike in the corporate - bond model, dealers don't deal with compressed position limits by widening spreads.

Nobody is really talking about it but, with the Fed tightening this week amid rising corporate bond spreads, Ray Dalio's 1937 analog continues to rhyme.

The yield on the U.S. 10 year Treasury bond recently hit 9 - month highs and the 2s10s spread widened on news of the Bank of Japan trimming its long - dated bond buying program and questions around China's ongoing purchase of U.S. Treasuries (USTs) with its foreign - exchange reserves.

One of the best economic indicators, the yield curve or the spread between short and long - term bonds remains in positive territory, with the long - term much higher than the short.

Only with bonds it's even harder to create a diversified portfolio using individual bonds on your own unless you (a) have a large amount of capital (typically bonds are sold in lots of $ 10,000 or $ 100,000) and (b) know how to trade bonds on the open market (transaction costs can be larger for bonds than stocks because of the spreads and lack of liquidity).

His theory has been distilled by others and spread widely to the public as something akin to the following: An investment portfolio should be a balance between publicly - traded stocks and bonds, starting with a ratio of 70:30, transitioning away from stocks and into bonds as the investor gets older.

By contrast, in Australia there has been no noticeable widening of risk spreads in the corporate bond market over the past year, and credit has been easily available from intermediaries, with no reports of significant changes in banks» lending attitudes.

What is to stop U.S. banks and their customers from creating $ 1 trillion, $ 10 trillion or even $ 50 trillion on their computer keyboards to buy up all the bonds and stocks in the world, along with all the land and other assets for sale, in the hope of making capital gains and pocketing the arbitrage spreads by debt leveraging at less than 1 % interest cost?

-- Goethe What is to stop U.S. banks and their customers from creating $ 1 trillion, $ 10 trillion or even $ 50 trillion on their computer keyboards to buy up all the bonds and stocks in the world, along with all the land and other assets for sale, in the hope of making capital gains and pocketing the arbitrage spreads by debt leveraging at less than 1 % interest cost?

Higher transaction costs Due to a typically large spread between bid and offer prices, and higher transaction costs associated with less liquid securities, trading high yield bonds can be costly.

Both funds spread your investments out among corporate bonds and U.S. government bonds with various maturities.

Takeaway 2: In talks with people I seriously respect, I found more concern about valuations and spreads in the bond market than about valuations in the stock market.

The resulting increase in corporate bond issuance has pushed up swap spreads, with the spread on US 10 - year (bank / government) swaps, for example, recently at its highest level for several years (Graph 7).

With the exception of the very front end of the yield curve, Canadian government bond yields declined, as did spreads on investment grade corporate bonds.

This is inaccurate, because there are other factors which combine with credit risk to make up the «spread premium» that other types of bonds have over treasuries.

The continuing low level of government bond yields has supported the search for yield that has been evident over the past couple of years, with the spread between yields on US government debt and yields on both corporate and emerging market debt remaining around historical lows over the past three months (Box B).

Consistent with this, spreads between corporate bond yields and swap rates have moved much more in line with CDS than have spreads between corporate bonds and CGS.

Banks are now forced to create and hide leverage off balance sheet (e. g. new «synthetic CDO» frauds and leveraged buyouts (LBOs) with outrageously high EBITDA ratios) in order to generate returns sufficient to pay employees when that is not available in the spreads associated with well - balanced bond sales.

For example, based on our analysis using J.P. Morgan index data, the EMBIG index's 7.25 percent performance in 2014 is owed to a -0.35 percent spread return combined with a 7.6 percent Treasury return, as U.S. rates dropped significantly (remember that when interest rates fall, bond prices rise, and vice versa).

Within this space financial institutions with exposure to Catalonia such as CaixaBank and Banc de Sabadell will be the ones to benefit the most and, in particular, their subordinated bonds spreads are the most likely to tighten as they are most sensitive to news.

The spread between 10 - year bond yields and the cash rate is currently around 45 basis points, compared with more than 100 basis points on average over the past decade (see the chapter on «Assessment of Financial Conditions»).

Major equity markets have risen further, and appetite for risk has increased, with spreads on corporate and emerging market bonds falling to levels not seen for several years.

Bond CFDs are over-the-counter products with a price established by Saxo Bank as the Futures market spread plus a fixed mark - up.

With the cash rate up by 50 basis points in late 2003 and yields on 10 - year bonds down a little over recent months, the spread has narrowed since early November to stand at around 50 basis points (Graph 67).

There is good rationale as to why the bond markets are in the position they are today; compressed spreads are the result of low rates coupled with strong demand out pacing supply for yield assets.

The following chart, taken from the paper, compares the stock - bond correlation (blue), the credit spread (green) and the federal funds target rate (red) over the entire sample period, with the latter two series scaled up by a factor of ten to facilitate comparison.

We favor a more even yield - curve exposure today (with positions across maturities) and a more defensive (higher - quality) credit profile — as volatility and heightened credit concerns could lead to significantly wider spreads in the high - yield - bond market.

This is a sacred time for meeting, connecting to and bonding with each other, so unplug from your phone and computer, and have someone else in charge of spreading the exciting news and taking pictures.

We need to stop spreading lies that mothers will automatically bond with their baby because we don't need moms to feel bad if that doesn't happen for them.

When paint is first spread on with a brush, the carbon atoms jump into action by bonding with oxygen in the atmosphere.

«I think it caught on, probably because, A, it's very close to what we already have in terms of the word vomit, so it was easily accessible linguistically and then, B, it already fit in with a cultural perception» spread through works like the «Satyricon,» Bond said.

Unlike romantic dating where you stand quite inhibited and feel shy to spread out up and you're always being scrutinized and also have to meet expectations, in situation of friendship dating, you are able to mingle with a potential partner freely and freely, without getting to visit overboard with attempting to impress along with a beautiful bond could be produced fast as friendship dating is growing rapidly straight forward.

With credit spreads tight (i.e. a sign that bonds are expensive) and U.S. equity valuations still stretched, investors may consider lightening up on their portfolio insurance, but they should not abandon it.

In a classic bond ladder, Bob would buy a range of bonds with maturity dates that are spread out evenly across different years.

In contrast, a bond issued by a smaller company with weaker financial strength typically trades at a higher spread relative to Treasuries.

With the note against bond spread (NOB), the position a futures trader will take depends upon their perception of the yield curve.

The note against bond spread (NOB) gives traders and investors a means with which to play anticipated changes in the yield curve.

I learned from a dear friend of mine who manages high yield at Dwight Asset Management (one of the largest fixed income management shops that you never heard of), that with high yield bonds, spreads over Treasuries aren't the most relevant measure for riskiness of the bonds.

Once spreads get really wide, the cycle can resume when those with strong balance sheets can tuck bonds away and realize a modest return in the worst scenario, if they just buy - and - hold.

Bond spreads have moved up significantly this year, with a sell - off this past week.

I learned from a dear friend of mine who manages high yield at Dwight Asset Management (one of the largest fixed income management shops that you never heard of), that with high yield bonds, spread...

Bond yield spreads are very highly correlated with the implied volatilities of stocks, and the yield spreads on bond indexes are highly correlated with the implied volatility on broad market equity indexes, like the Bond yield spreads are very highly correlated with the implied volatilities of stocks, and the yield spreads on bond indexes are highly correlated with the implied volatility on broad market equity indexes, like the bond indexes are highly correlated with the implied volatility on broad market equity indexes, like the VIX.

This leads the corporate bond market default in tandem with rising credit default swaps spreads.

Yield blindness or stated another way, the insatiable search for yield coupled with the low supply of higher yielding bonds has kept many weaker credits including Illinois from seeing higher spreads.

The spread is even higher when it is compared with Pan Asian bonds, as tracked by the S&P Pan Asia Bond Index.