Sentences with phrase «yield bond market into»

Imagine, for a moment, that we could split the U.S. high yield bond market into two categories: those securities owned by the passive investors, and everything else, which is owned by the active investors.

Not exact matches

It puts 25 % into foreign stocks, 25 % into U.S. Treasuries, and 10 % each into commodities, emerging - market currency, bank loans, high - yield bonds, and 5 % each into TIPS and local - currency emerging - market debt.

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.

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.

Then «tapering» talk by the Federal Reserve caused U.S. bond yields to shoot up and draw back the capital that had earlier flowed into the emerging markets, putting more downward pressure on financial markets and currencies.

He said the team thinks there aren't enough rate hikes priced into the fixed - income market and therefore he likes the long end of the yield curve, or longer duration bonds.

When bonds yield 1.75 % for investment - grade bonds, then it's difficult to turn that into a 5 % -10 % return going forward... If he wants to argue against that, and talk about Dow 5000 and bear and bull markets, then he's welcome to, but he's pushing at windmills in my opinion, and he belongs back in his ivory tower.

But cash isn't such a bad thing in a rising rate environment as the yield pick up rather quickly on money market accounts or you can roll some of that over into higher yielding short - term bonds.

Finally, the Fed's easy - money policies have pushed investors into the stock market because bond yields are so low.

I still think there will be a flight to safety in sovereign bonds when stocks have a bear market but other areas such as high yield and corporate debt could run into some problems.

And I think that given higher volatility in the markets, going into higher yielding bonds or stocks, the risker ones, is unadvisable.

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.

After a relentless search for yield, investors have piled into dividend - yielding, defensive stocks, or what we call «bond market proxies,» making many such segments extremely expensive.

One of the biggest transformations in global financial markets is the drop in government bond yields — not only to historic lows but into negative territory.

Higher oil prices would reinforce current market trends based on reflation: rising long - term bond yields and a shift out of perceived safer assets — bond proxies and low - volatility stocks — and into cyclical assets such as EM.

While much of the outflows so far have been a result of investors switching out of high yield into safer money - market and government bond funds, Gutteridge believes we have seen the bulk of the selling.

But I am concerned that late - cycle entrants into risk assets like stocks and high - yield bonds are taking a leap of faith at a time when there is less room for markets to move up and growing risks of them falling back.

Non-asset holders were punished — their bank deposits now generate little or no income, and they were forced to move into riskier assets, such as stocks, bonds, real estate, or «anything that offers some yield and is not bolted down to the floor» (please see my answer to What kind of market distortions does the Fed loaning out money at 0 % cause?).

If much of the investment into bond mutual funds that has occurred the last couple of years is for purposes of dampening the volatility of a portfolio — and with the 10 - Year Treasury yield at 1.8 percent it's difficult to argue for a different motivation - then it's important to think through the thesis that bonds will defend a balanced portfolio in an equity bear market in the same way they have, especially to the extent they have in the last two bear markets.

In 2015 Creditex expanded into serving the bond market, through the launch of ICE Credit Trade, a leading electronic platform for trading investment grade and high yield corporate bonds.

Rates subsequently bear steepened as long - end led the weakness, but renewed decline in risk sentiment managed to create a soft ceiling for bond yields, and the rates market rallied into the close.

The global search for yield has driven many fixed income investors into unfamiliar territory, leading them to embrace more credit risk and even venture beyond the bond markets — not just into dividend - paying equities but also into selling equity options.

Currently, BBB - rated bonds are equal to 45 % of the entire outstanding high - yield market, which has increased from 30 % a decade ago.3 Since BBB is the lowest investment - grade bond rating, the risk is that many poor credits will fall, like angels, from the investment - grade into the high - yield universe.

By taking a deeper look; we can break apart the total yield on the US government 30 year bond (Chart: light blue data) into its two parts: (1) the market's estimate of the inflation rate (Chart: green data) and (2) the resulting «real» (after inflation) rate of interest (Chart: dark blue data).

In another segment of the bond market, yields on Fannie Mae mortgage - backed securities — those used to guide lenders into the bond market — jumped to 3.21 percent in their biggest move since mid-2009, the Journal reported.

So while low and negative interest rates across the globe has inspired flows into stocks, emerging market bonds and corporate credit in search of higher yields, keep in mind the high correlations of these assets to oil prices and the advantages of holding actual diversifiers in your portfolio to smooth the ride.

Currency impact can be managed by hedging local currencies back into U.S. dollar, allowing investors to potentially earn local market yields and take advantage of potential local bond price appreciation, with less currency fluctuations.

One of the biggest transformations in global financial markets is the drop in government bond yields — not only to historic lows but into negative territory.

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.

But I'd be wary of venturing, as some investors seeking higher yields do, into high - yield, or junk, bond funds, as they're generally more volatile than investment - grade funds and don't hold up as well in periods of economic and market stress.

The low yield environment is pushing them into bond market substitutes.

Just think back to September 2015, when large high - yield bond issuer Sprint was downgraded several notches, spurring a furious selloff that bled into broader markets.

High - yield bonds are into their second year of sub-par returns, and much of Canada's preferred share market (fixed floaters and rate resets) has declined approximately 25 per cent in the past year.

The fact is, individual bonds have market values that fluctuate with market conditions too, but it takes some effort to translate that into a yield figure at given moment, so it's easy to tune it out and forget it exists.

They consider four potential predictors: (1) the default spread (between Moody's BAA and AAA rated bonds); (2) the broad stock market dividend yield; (3) the implied volatility of the S&P 500 Index (VIX); and, (4) the monthly net aggregate flow into the hedge fund industry.

Yield to maturity (YTM) is used for OID bonds and takes into account the bond's current market price, par value, coupon interest rate and time to maturity.

As they came into the market, bond yields fell and bond prices, which move in the opposite direction to yields, began to gain ground, providing a nice capital gain to holders.

Private market investments provide vital diversification into assets uncorrelated with stocks and bonds, which can improve risk - adjusted returns through higher yield potential, lower beta, and greater protection from market volatility.

Looking into the 10 countries in the S&P Pan Asia Sovereign Bond Index, the highest - yielding market was India (at 7.50 %), followed by Indonesia (at 7.40 %), see exhibit 1.

That turns a 4 % yield into something worth at least 5 %, which all but ensures a healthy market for the bonds.

Trump's victory has sent the bond markets into disarray, with the yield on government bonds rising steeply.

He classifies asset classes into core (domestic equities, treasury bonds, inflation - linked bonds, foreign developed equity, emerging markets equity, real estate domestic, foreign and emerging markets, bonds, TIPS and REITs) and non-core (domestic corporate bonds, high - yield bonds, tax - exempt bonds, asset - backed securities, foreign bonds, hedge funds, leveraged buyouts, and venture capital), explains the reasons why investors should favour the former and stay clear of the latter.

A video using the Regime Portfolios Backtest to check - in on using high - yield bonds as information into the state of the market.

I have other short positions in my portfolio, so for long bond yields to continue to tank, it would probably take some sort of exogenous event or major market malaise, which would translate into gains elsewhere in the portfolio.

This yield takes into account the series of capital losses the fund will experience as its above - market - rate bonds mature.

When you have many different parties going into the markets seeking income, not caring where they get it from, and a shock hits one part of the market, the effect flows to other areas If all of a sudden yields on junk bonds look cheaper, the yield trade - offs of buying junk and selling dividend paying common stocks looks attractive.

Its value is typically inversely correlated to the rest of the market as a whole, because its status as a material, durable store of value makes it a preferred «safe haven» to move money into in times of economic downturn, when stock prices, bond yields and similar investments are losing value.

Personally I hold 4 main assets, higher yielding shares, property, gold and bonds but I guess I'm getting off topic a bit so I'll say no more other than If I could go back in time and advise a young me I'd say get a mortgage as soon as possible but also drip feed money into the stock market on a regular basis.

To take the extreme case, it's very rare for the Baa - rated corporate bond yield to be less than the average REIT dividend yield: that has happened only at times when investors were most dramatically avoiding REITs, most recently in March 2009 at the lowest point of the Great Financial Crisis — and in the 12 months following that episode, those investors who bucked the market and bought into REITs were rewarded with total returns that exceeded 100 percent.