Sentences with phrase «yield bond investors»

High - yield bond investors require a tolerance for risk, along with the patience to weather periodic market downturns or unexpected events that negatively impact individual issues.
Considering the low yield bond investors are earning during sunnier days for equity - only investors, when the storm comes, that outcome would be particularly painful.
High - yield bond investors might be looking for the same.

Not exact matches

Markets around the globe have been keeping a close eye on the U.S. bond market as rising Treasury yields put investors on edge.
REITs have long been popular with income - seeking investors in this era of miniscule government bond yields.
While investors will have to find stocks with higher yields, pay more for them and take on more risk in bonds, the biggest change in a permanently low - rate world is that people will need to set aside more of every paycheque if they want to keep the same goal for retirement income.
So far, though, no one is reporting any unusual outflows in the bond market, but Hamilton - Keen cautions investors against chasing high - yield products.
In other words, because investors can not generate a sufficient return from low - yielding bonds, they turn to stocks as their only alternative.
«If they do target aggressively the 2 percent inflation target, and undertake a significant amount of QE, that may have an impact on underlying JGB (Japanese government bond) yields as investors become concerned over Japan's debt,» he said.
Although there may not be a bond bubble, with investors starved for yield, Gundlach predicts a potential bubble could form in credit risk as investors increase their leverage on riskier debt securities like junk bonds and emerging market debt.
But what really rattled bank investors was likely flagging bond yields.
The Fed's low interest rate policy has driven more and more money into bond funds as investors search for higher yields.
Bond investors like mutual funds and pension funds hope to buy securities with comparatively higher yields than other asset - backed debt that could also provide diversification benefits.
Bond yields move inversely to prices; as a bond's yield declines, its price rises, offering investors the opportunity for capital returns in addition to the coupon paymeBond yields move inversely to prices; as a bond's yield declines, its price rises, offering investors the opportunity for capital returns in addition to the coupon paymebond's yield declines, its price rises, offering investors the opportunity for capital returns in addition to the coupon payments.
When bond yields rise, investors often start weighing whether stocks are the only game in town for return.
For, with long - term taxable bonds yielding 5 percent and long - term tax - exempt bonds 3 percent, a business operation that could utilize equity capital at 10 percent clearly was worth some premium to investors over the equity capital employed.
At some point, investors who are conflating high - yielding consumer staples stocks with bonds or who are taking interest rate risk in long - dated Treasurys will see drawdowns as well.
The rise in bond yields, which investors fear could hurt equities, has been partly fuelled by the spike in crude oil prices, which on Tuesday crossed $ 75, boosting energy shares.
NEW YORK, Jan 18 - U.S. fund investors pulled $ 3.1 billion from high - yield «junk» bonds during the latest week, Lipper data showed on Thursday, offering new warning signs about risk appetite despite global markets» continuing triumph.
Investors increasing their current yield by taking credit risk in junk bonds have recently learned a similar lesson.
U.S. government bond yields rose on Tuesday, as investors digested more economic data and an auction.
Meanwhile government bond yields, a reliable barometer of market fear, are falling to record low levels as investors engage in a panicked hunt for risk - free assets.
Investors were watching the report closely after fears of surging inflation helped send the stock market lower and bond yields higher.
Also, Ablin added a large portion of the recent rally involved a rotation from bonds into stocks as low interest rates forced investors to seek yield in the stock market.
RATES STILL LOW: Even as concerns about rising bond yields and interest rates spook some investors, bulls are quick to mention that rates are rising off extremely low levels.
Some investors might react by moving capital from the U.S. to safe, stable Canada, putting some downward pressure on Canadian bond yields and pushing up the loonie, said Burleton.
U.S. long - term rates would spike, while investors in Canada would rush to the domestic fixed - income market, setting off a bond rally that would push Canadian yields down «substantially,» said Burleton.
More from The New York Times: For Bond Investors, Low Expectations in a Low - Yield World Emerging Market Bonds Are on a Roll.
There just aren't that many stable places left for investors to put their money and a lot of it will come here, perhaps heading to the bond markets, driving yields down.
Still, corporate bond spreads have come up to around their historical average, providing impetus for institutional investors trying to claw out yield any way they can, even if it means an extraordinarily long - term commitment.
Higher yields generally hurt stock prices by making bonds more appealing to investors.
Investors were relieved to see bond yields pull back from the four - year highs they reached Wednesday.
Most investors shy away from bonds because they yield (or return) less than equities and tend to be more complex in nature.
Pimco, one of the world's largest bond fund managers, and widely followed Guggenheim Partners are among the investors who say benchmark 10 - year Treasuries yielding 3 percent - now within reach - are too hard to resist.
On Monday, investors rushed into Treasuries as the S&P 500 and Dow Jones Industrial Average nosedived more than 4 percent - reversing a move on Friday when a spike in bond yields, which move inversely to prices, triggered an equity rout.
With stocks trading near all - time highs and bond yields still relatively low, some investors have turned to alternative asset classes.
Brian Belski, BMO Capital Markets» chief investment strategist, says bonds are still the main place for investors to stash money, even with today's low yields.
Certainly, it offers an attractive level for longer - term investors such as pension and insurance funds to lock in a relatively decent yield, and will tempt some portfolio managers to buy bonds rather than equities.
Though currently bank equity investors are cheering the steepening of yield curves, meanwhile, the 2003 Japan episode should fix regulators» attention on the growing home - bias in government bonds.
Tax risks While municipal bonds can offer attractive effective yields and can be a way to generate tax - free income, they may not be right for investors in every tax bracket or for every type of account.
Treasury prices cut earlier losses on Monday, pushing yields slightly lower, after stocks fell sharply, pushing investors into haven assets like government bonds.
The yield on a Treasury bill represents the return an investor will receive by holding the bond to maturity, and should be monitored closely as an indicator of the government debt situation.
Rates for home loans eased up slightly as investors bought more bonds, sending yields down a few basis points.
Treasury yields have been rising not because of rising risks but because the asset bubble in bonds is deflating, inflation is rising, and investors are demanding more yield.
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Treasury yields pull back sharply Thursday after the reemergence of trade tensions between global powerhouses rattles investors, pushing stocks down and bond prices up
Recent moves in the bond markets have unsettled investors used to low yields.
the percentage of return an investor receives based on the amount invested or on the current market value of holdings; it is expressed as an annual percentage rate; yield stated is the yield to worst — the yield if the worst possible bond repayment takes place, reflecting the lower of the yield to maturity or the yield to call based on the previous close
The two largest funds in the segment — the $ 15 billion iShares iBoxx $ High Yield Corporate Bond ETF (HYG) and the $ 9 billion SPDR Bloomberg Barclays High Yield Bond ETF (JNK)-- have faced sizable asset outflows as investors fret over high valuations and rising interest rates.
But as investors bid up bond prices, the yields come down e.g. $ 10 dividend payment on a $ 100 bond = 10 % dividend yield, but if the bond gets bid up to $ 200, the dividend yield is only 5 %.
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