Not exact matches
Still, for
income capturers, the 4 + %
yields available today may be welcome news compared to the absolute payout dearth that has been seen over the past 5 - 7 years.
Bond markets are not excluded from this equation and emerging market fixed
income markets are
yielding much higher rates than those
available in the developed world.
These ETFs, now
available for the municipal, corporate and high
yield sectors, enable more precise control over duration risk than previous fixed
income ETF offerings.
An exception is the Claymore Advantaged Short Duration High
Income ETF (CSD) is also
available in a USD - denominated version (CSD.U) if you prefer to hold high -
yield bonds without currency hedging.
The fund seeks high current
income and capital appreciation consistent with the preservation of capital, and is looking for
yields that are better than those
available via traditional money market funds.
In my prior post, I gave an overview of the
income options
available in today's bond market, going over how much
yield was
available from different asset classes and how to think about the risks that different bond investments carry.
The DRS has had more downside risk than traditional investment - grade bonds, but with the lack of
yield available in fixed
income, an increasing number of investors are open to the idea of an allocation to «alternative fixed
income.»
When the
income earned from work figure on the FAFSA is lower than the actual
income upon which the taxes are based, it
yields lower tax allowances and hence a higher
available income, which ultimately leads to a higher EFC.)
There's a lot of safe
income available to retirees in high -
yield bonds, but most never consider them because they know nothing about them.
So consider this article a rudimentary summary of some of the
income options
available to you as an investor in a low
yield world.
You attack the mortgage like it is a war... you keep paying as much as you can towards it from your regular source of
income (work) but you borrow the maximum
available equity from your home (which gets increased with every mortgage payment you make — have to find a bank / banker willing to do that for you) and with that borrowed money you purchase
income -
yielding investments.
There are many different types of fixed
income instruments
available: corporate investment grade, high -
yield corporates, federal government, municipals, and mortgage - backed securities, to name the most common.
Large index ETFs, which have real - time net asset values (NAVs), have not helped this pricing problem in fixed
income but, in parts of the fixed
income market where there is less liquidity (such as high
yield bonds), sourcing issues can be more difficult — particularly in a market sell - off where buyers may not be readily
available with sufficient capacity to take on bond inventory.
The days of high
yields available from bonds and other fixed
income vehicles are long gone.
Muni, taxable and high
yield offerings are now
available in the market place, enabling investors to essentially «ladder «their portfolios with ETFs that will «mature» in different time frames or years (i.e. 2014, 2015, etc.) Essentially, target date ETFs are a re-branding of fixed
income unit trusts that existed years ago in the marketplace.
Yields are used mainly for money market funds and are equal to the daily net
income available for distribution, annualized, divided by outstanding shares of record and shown as a percentage.
The incremental buying by central banks competed for the
available supply with natural demand from those seeking
income producing assets, driving up bond prices and down
yields.
Additionally, in this low - interest - rate environment, the dividend
yield offered by dividend - paying companies is substantially higher than rates
available to investors in most fixed -
income investments such as government bonds.
Fixed -
income: Regardless of country or supra - national market, the fixed -
income fund should have holdings throughout the entire length of the
yield curve (most
available maturities), as well as being a mix of government, municipal (general obligation), corporate and high -
yield 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.
That results in the ETF not always having the highest -
yielding dividend stocks
available, but it instead serves to assure investors that
income payouts will steadily rise over time.
There are several options of this type to suit alternative risk appetites, with the latest high
yield checking accounts providing a low - risk avenue for growth and real estate investments
available to those with more
income and a desire to achieve greater returns.
Some fixed
income — now that Fannie and Freddie are wards of the state, why not go for the higher
yields available on their bonds?
Investors who anticipate a significant drop in their marginal
income - tax rate may be better served by the higher
yield available from taxable bonds.
Putting all this together, looking at
available income / risk alternatives, considering historic preference
yields, and with some anticipation of continued QE & financial repression, I was pretty hopeful the current
yield could eventually compress to around 8 %.
Lank will continue to manage Fidelity Advisor High
Income Advantage Fund, the U.S. high -
yield sub-portfolios of Fidelity Puritan Fund, and Fidelity Global High
Income Fund, as well as various high -
yield portfolios not
available to U.S. investors.
Do the returns
available within a whole life contract justify maintaining a cash balance there versus other fixed -
income yielding investments?
Also NSAM has the ability to earn incentive fees each quarter based on NRF's cash
available for distribution (or CAD) which may create an incentive for NSAM to invest in assets with higher
yield potential, which are generally riskier or more speculative, or sell an asset prematurely for a gain and pay down borrowings, in an effort to increase its short - term net
income and thereby increase the incentive fees to which it is entitled.