The high
yield bond indices are rolling over quickly.
Exchange - traded funds that track high -
yield bond indexes have been the beneficiaries of a cash surge in recent weeks.
The yield on the BofA Merrill Lynch High
Yield Bond index rose from just over 6 percent at the end of May to 7.9 percent as of Nov. 17.
Exchange - traded funds that track high -
yield bond indexes have been the beneficiaries of a cash surge in recent weeks as market participants figure the central bank probably won't raise rates in 2015, and it could be well into 2016 before anything happens.
Moderate income model portfolio: 3 % Bloomberg Barclays 1 — 3 Month Treasury Bill Index, 19 % Bloomberg Barclays U.S. Aggregate Bond Index (1 — 3Y), 30 % Bloomberg Barclays U.S. Aggregate Bond Index (5 — 7Y), 7 % Bloomberg Barclays U.S. Aggregate Bond Index (10 + Y), 6 % Bloomberg Barclays U.S. Corporate High
Yield Bond Index, 5 % JPM GBI Global ex. - U.S. Index, 5 % JPM EMBI Global Index, 12 % S&P 500 Index, 2 % Russell Midcap ® Index, 2 % Russell 2000 ® Index, 4 % MSCI EAFE Index (USD), 5 % FTSE EPRA / NAREIT Developed Index.
Moderate Growth and Income Four Asset Group model portfolio without private capital: 3 % Bloomberg Barclays 1 — 3 Month Treasury Bill Index, 11 % Bloomberg Barclays U.S. Aggregate Bond Index (5 — 7Y), 6 % Bloomberg Barclays U.S. Aggregate Bond Index (10 + Y), 6 % Bloomberg Barclays U.S. Corporate High
Yield Bond Index, 3 % JPM GBI Global ex. - U.S. Index, 5 % JPM EMBI Global Index, 20 % S&P 500 Index, 8 % Russell Midcap ® Index, 6 % Russell 2000 ® Index, 5 % MSCI EAFE Index (USD), 5 % MSCI EM Index (USD), 5 % FTSE EPRA / NAREIT Developed Index, 2 % Bloomberg Commodity Index, 3 % HFRI Relative Value Index, 6 % HFRI Macro Index, 4 % HFRI Event - Driven Index, 2 % HFRI Equity Hedge Index.
iShares S&P ® / TSX ® 60 Index Fund («XIU»), iShares S&P / TSX Capped Composite Index Fund («XIC»), iShares S&P / TSX Completion Index Fund («XMD»), iShares S&P / TSX SmallCap Index Fund («XCS»), iShares S&P / TSX Capped Energy Index Fund («XEG»), iShares S&P / TSX Capped Financials Index Fund («XFN»), iShares S&P / TSX Global Gold Index Fund («XGD»), iShares S&P / TSX Capped Information Technology Index Fund («XIT»), iShares S&P / TSX Capped REIT Index Fund («XRE»), iShares S&P / TSX Capped Materials Index Fund («XMA»), iShares Diversified Monthly Income Fund («XTR»), iShares S&P 500 Index Fund (CAD - Hedged)(«XSP»), iShares Jantzi Social Index Fund («XEN»), iShares Dow Jones Select Dividend Index Fund («XDV»), iShares Dow Jones Canada Select Growth Index Fund («XCG»), iShares Dow Jones Canada Select Value Index Fund («XCV»), iShares DEX Universe Bond Index Fund («XBB»), iShares DEX Short Term Bond Index Fund («XSB»), iShares DEX Real Return Bond Index Fund («XRB»), iShares DEX Long Term Bond Index Fund («XLB»), iShares DEX All Government Bond Index Fund («XGB»), and iShares DEX All Corporate Bond Index Fund («XCB»), iShares MSCI EAFE ® Index Fund (CAD - Hedged)(«XIN»), iShares Russell 2000 ® Index Fund (CAD - Hedged)(«XSU»), iShares Conservative Core Portfolio Builder Fund («XCR»), iShares Growth Core Portfolio Builder Fund («XGR»), iShares Global Completion Portfolio Builder Fund («XGC»), iShares Alternatives Completion Portfolio Builder Fund («XAL»), iShares MSCI Emerging Markets Index Fund («XEM») and iShares MSCI World Index Fund («XWD»), iShares MSCI Brazil Index Fund («XBZ»), iShares China Index Fund («XCH»), iShares S&P CNX Nifty India Index Fund («XID»), iShares S&P Latin America 40 Index Fund («XLA»), iShares U.S. High
Yield Bond Index Fund (CAD - Hedged)(«XHY»), iShares U.S. IG Corporate Bond Index Fund (CAD - Hedged)(«XIG»), iShares DEX HYBrid Bond Index Fund («XHB»), iShares S&P / TSX North American Preferred Stock Index Fund (CAD - Hedged)(«XPF»), iShares S&P / TSX Equity Income Index Fund («XEI»), iShares S&P / TSX Capped Consumer Staples Index Fund («XST»), iShares Capped Utilities Index Fund («XUT»), iShares S&P / TSX Global Base Metals Index Fund («XBM»), iShares S&P Global Healthcare Index Fund (CAD - Hedged)(«XHC»), iShares NASDAQ 100 Index Fund (CAD - Hedged)(«XQQ») and iShares J.P. Morgan USD Emerging Markets Bond Index Fund (CAD - Hedged)(«XEB»)(collectively, the «Funds») may or may not be suitable for all investors.
The Bloomberg Barclays U.S. Corporate High
Yield Bond Index covers the universe of fixed - rate, non-investment-grade debt.
He also noted that it is a very poor time to buy corporate bonds (high
yield bond index yield 4.93 %) and Gundlach sees a negative return for the S&P in 2018 as the rates rout eventually gives the equity market the yips.
The Bloomberg Barclays High -
Yield Bond Index is an unmanaged index of corporate bonds rated below investment grade by Moody's, S&P or Fitch Investor Service.
The Standard & Poor's U.S. - Issued High
Yield Bond Index is down only 1.73 percent in the fourth quarter, as expectations of a Federal Reserve rate hike rose.
Fixed income sectors shown to the right are provided by Barclays and are represented by the following Bloomberg Barclays Indices — Treasury Inflation Protected Securities: U.S. Treasury Inflation - Protected Securities (TIPS) Index; Floating Rate Loans: US Floating - Rate Note Index (BBB); Asset - backed securities: US Asset - Backed Securities Index; High Yield: US Corporate High -
Yield Bond Index; Convertibles: US Convertible Bond Index; Mortgage - backed securities: US Aggregate Securitized MBS Index; Broad Market: US Aggregate Bond Index; Municipals: Municipal Bond 10 - Year Index; Investment Grade Corporates: US Corporates Index
The Bloomberg Barclays US Corporate High -
Yield Bond Index is an unmanaged broad - based market - value - weighted index that tracks the total return performance of non-investment grade, fixed - rate, publicly placed, dollar denominated and nonconvertible debt registered with the Securities and Exchange Commission.
For example, the yield on a high -
yield bond index moves from 7 % to 7.5 %.
As Figure 1 shows, the Bloomberg Barclays US Corporate High
Yield Bond Index posted positive returns during rising - rate periods, averaging a return of 8.86 % while the Bloomberg Barclays US Aggregate Bond Index was almost entirely in the red with an average return of -1.41 %.
This fund has been around since 2007, though it didn't start tracking the RAFI High
Yield Bond Index until last August.
Yields of bonds in the S&P 500 BB High
Yield Bond Index have risen 165 basis points since July 1st driving the total return down by over 5.3 % during that time.
Fixed income sectors shown above are provided by Barclays and are represented by — Broad Market: U.S. Aggregate Bond Index; MBS: U.S. Aggregate Securitized - MBS Index; Corporate: U.S. Corporates; Municipals: Muni Bond 10 - year Index; High Yield: US Corporate High
Yield Bond Index; TIPS: Treasury Inflation Protected Securities (TIPS).
High yield corporate bonds tracked in the S&P U.S. Issued High
Yield Bond Index have returned just under 5 % year to date but lost ground the past several days as fund outflows weigh on the market driving prices down and the weighted average yield (yield to worst) up by 22bps since last week to end at 4.88 %.
The Bloomberg Barclays U.S. Corporate High
Yield Bond Index (Representing U.S. High Yield) is a total return performance benchmark for fixed income securities having a maximum quality rating of Ba1 (as determined by Moody's Investors Service).
He also noted that it is a very poor time to buy corporate bonds (high
yield bond index yield 4.93 %) and Gundlach sees a negative return for the S&P in 2018 as the rates rout eventually gives the equity market the yips.
The Bloomberg Barclays U.S. Corporate High
Yield Bond Index is a total return performance benchmark for fixed income securities having a maximum quality rating of Ba1 (as determined by Moody's Investors Service).
Notes: U.S. stocks represented by Dow Jones U.S. Total Stock Market Index through April 2005, MSCI US Broad Market Index through June 2013 and CRSP US Total Market Index thereafter; emerging markets stocks are represented by MSCI Emerging Markets Index; REITs by FTSE NAREIT Equity REIT Index; dividend stocks by Dow Jones U.S. Select Dividend Index; commodities by S&P GSCI Commodity Index; high yield bonds by Bloomberg Barclays U.S. Corporate High
Yield Bond Index; emerging markets bonds by Bloomberg Barclays EM USD Aggregate Index; investment - grade corporate bonds by Bloomberg Barclays U.S. Corporate Index; U.S. Treasury bonds by Bloomberg Barclays U.S. Treasury Bond Index; Hedge fund index by HFRI fund - weighted total return Index and international bonds by Bloomberg Barclays Global Aggregate ex-USD Bond Index.
Not exact matches
The main stock
index dropped by as much as 2.4 percent earlier, while the benchmark 10 - year government
bond yield rose to 6.944 percent, the highest since August 2017.
The iShares JPMorgan USD Emerging Markets
Bond fund, an
index product that tracks the sector, has a trailing 12 - month
yield of 4.33 percent.
The JPMorgan Emerging Markets
Bond Index Global, a U.S. dollar - denominated index of 65 emerging - market countries, yields about
Index Global, a U.S. dollar - denominated
index of 65 emerging - market countries, yields about
index of 65 emerging - market countries,
yields about 5 %.
April 26 - U.S. stock
index futures pointed to a strong open for the tech - heavy Nasdaq on Thursday as a slew of upbeat earnings from Facebook and Qualcomm helped set aside worries over rising U.S.
bond yields and corporate costs.
Sterling fell 1 % against the dollar following the announcement, while British government
bond yields hit record lows and the main share
index rose by 1 %.
I sent out to some people last Wednesday why I thought the CDS market would outperform ETF's, and that is still my view, and has a lot to do with the
bonds that make up the high
yield index and their rate risk exposure for some, and horrible convexity for others.
Banks rose along with the
bond yields, as the S&P / TSX composite
index advanced 84.57 points to 15,524.01, helped in part by the influential financials sector.
Its underlying
index selects and weights its
bonds by market value, and this method
yields a portfolio that aligns well with our benchmark in terms of credit tranches and maturity buckets, with the only notable difference being a slightly lower YTM.
SHYL tracks a broad and straightforward short - term
bond index that includes all high -
yield corporate debt meeting the liquidity requirements.
The $ 1.2 trillion market for U.S. junk
bonds yields about 6.6 percent, double what's offered by higher - rated company debt, according to Bank of America Merrill Lynch
index data.
SHYL tracks an
index of USD - denominated high -
yield corporate
bonds with 0 to 5 years remaining to maturity.
High -
yield bonds delivered another year of strong performance in 2017, with the benchmark Bloomberg Barclays US Corporate High Yield 2 % Issuer Capped Index returning 7.2 % as we approached year -
yield bonds delivered another year of strong performance in 2017, with the benchmark Bloomberg Barclays US Corporate High
Yield 2 % Issuer Capped Index returning 7.2 % as we approached year -
Yield 2 % Issuer Capped
Index returning 7.2 % as we approached year - end.
Yields on the iShares S&P TSX 60 (XIU - TO) are around 2.25 % and on the iShares DEX Universe
Bond Index ETF of mid-term
bonds is around 3.8 % with -LSB-...]
More interesting is the return on the BofA Merrill Lynch U.S. High
Yield Energy
Bond index, which has a whopping 18.26 % return YTD, but over the past year still has a negative 15.65 % return.
Advisors should give fixed
indexed annuities (FIAs) a serious look because FIAs offer a compelling story in an era of low
bond yields, according to Roger G. Ibbotson, one of the most recognizable names in finance.
Below you'll find the SPY and BofA Merrill Lynch US High
Yield Master II Option - Adjusted Spread (a high yield bond spread index) plotted against
Yield Master II Option - Adjusted Spread (a high
yield bond spread index) plotted against
yield bond spread
index) plotted against SPY.
Last week, spreads on the Morningstar Corporate
Bond Index, an investment - grade corporate bond gauge, and the BofA Merrill Lynch High Yield Master Index, shot hig
Bond Index, an investment - grade corporate
bond gauge, and the BofA Merrill Lynch High Yield Master Index, shot hig
bond gauge, and the BofA Merrill Lynch High
Yield Master
Index, shot higher.
For many years now
indexed bond yields have been on a downward trend.
Benchmark stock
indexes were also volatile Wednesday, as investors mulled the impact of rising
bond yields and disappointing earnings.
Western allies press Trump to maintain nuclear deal with Iran: Reuters US intelligence monitors Iranian cargo shipments into Syria: CNN A trade war is a major risk for China's debt - ridden economy: CNBC Federal judge orders gov» t must accept new DACA immigration applications: WaPo Unification of Koreas still unlikely as leaders prepare to meet: Reuters US Consumer Confidence
Index rebounded in April after March decline: CB New home sales in US increased to 4 - month high in March: MarketWatch Richmond Fed Mfg
Index turns negative for first time since 2016:
Bond Buyer S&P Case - Shiller Home Price
Index surged in Feb, up 6.3 % y - o - y: CNBC Federal Housing Finance Agency: US house prices continued to rise in Feb: HW Corp
bonds with lowest investment - grade rating look vulnerable: Bloomberg 10 - year Treasury
yield reaches 3.0 % for first time since 2014: CNN Money
Over the long term the nominal return on a duration - managed
bond portfolio (or
bond index — the duration on those doesn't change very much) converges on the starting
yield.
High -
yield bonds represented by the Bloomberg Barclays High Yield 2 % Issuer Capped Index, comprising issues that have at least $ 150 million par value outstanding, a maximum credit rating of Ba1 or BB + (including defaulted issues) and at least one year to matu
yield bonds represented by the Bloomberg Barclays High
Yield 2 % Issuer Capped Index, comprising issues that have at least $ 150 million par value outstanding, a maximum credit rating of Ba1 or BB + (including defaulted issues) and at least one year to matu
Yield 2 % Issuer Capped
Index, comprising issues that have at least $ 150 million par value outstanding, a maximum credit rating of Ba1 or BB + (including defaulted issues) and at least one year to maturity.
1: Widening credit spreads: An increase over the past 6 months in either the spread between commercial paper and 3 - month Treasury
yields, or between the Dow Corporate
Bond Index yield and 10 - year Treasury
yields.
Our Investment Strategy Report published on March 19 compared equity and
bond yields over multiple business cycles and found that the 10 - year Treasury
yield might have to sustain levels exceeding 3.5 % (far above what we believe is likely this year) before compelling a year - end 2018 S&P 500
Index target range below our current year - end target of 2800 - 2900.2
Their data set included constituents of the Bank of America Merrill Lynch investment - grade (US Corporate Master
Index) and high -
yield (US High Yield Master Index) bond indexes, and covers the period January 1997 through December
yield (US High
Yield Master Index) bond indexes, and covers the period January 1997 through December
Yield Master
Index)
bond indexes, and covers the period January 1997 through December 2016.
The government's 10 - year
bonds rose, pushing
yields to their lowest level this year, while the benchmark BUX stock
index rallied the most in six weeks.
The fund adjusts its allocations daily based upon equity and
bond market volatility, correlation between the
bond and equity
indexes, and the
yield - to - maturity of the
bond index.