For example, during the liquidity crisis in 2007, the U.S. high -
yield bond market saw trading frozen in some bonds.
Not exact matches
So, it is a very different
market than it was 10 years ago, and you're going to
see a lot of corporate
bond issuance as these infrastructure projects go out there, and you can capture some pretty good
yields and you know what you're buying because it's a corporate
bond.
yields will hit the highs on close end of the day... equity
markets setting up to be slammed tomorrow maybe but today they have run over weak shorts in the face of rates... the federal reserve
see's this and again will wonder if they are behind on hikes, strong data, major expansion in credit, lack of wage growth rising
bond yields and ballooning debt... rates will go much higher and equities will have revelations as to what that means for valuations
Junk -
bond ETFs rallied on Wednesday, as
markets breathed relief that the «fiscal cliff» is no longer a concern and as a result,
bond yields are under 6 percent for the first time ever, and junk ETF share prices hit levels not
seen in years in some cases, according to an article on ETF Trends.
Bond yields have likely bottomed out, and we don't
see scope for big rises in already elevated stock
market valuations amid tepid earnings growth.
As you can
see the, divergence between the S&P 500 and the high
yield bond market has reached an absurd level.
The
market is still digesting the once - in - a-generation move in
bond yields we've
seen this spring.
We
see few opportunities in the U.S. high
yield bond market.
Composite Treasuries Sentiment: Taking a broader view of
bond market sentiment (our composite
bond market sentiment indicator combines the signal from futures positioning, fund flows, implied volatility, and global
bond market breadth), it's readily apparent that
bond market sentiment has
seen a reset from relatively stretched bearishness to just on the bullish side of neutral (i.e. the indicator is saying participants have gone from expecting higher
bond yields to expecting lower
bond yields).
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.
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.
As Japan's JGB
market has shown for a decade, you don't need high
yields to
see impressive gains in
bonds.
Short term interest rates remain near zero, 10 - year
bond yields have declined below 2 %, and our estimate of 10 - year S&P 500 total returns has declined to just 1.4 % (
see Ockham's Razor and the
Market Cycle for the arithmetic behind these historically - reliable estimates).
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?).
While downside risks to these forecasts remain, recent data in the United States have been slightly more encouraging and, in response, equity
markets and bond yields have recorded solid increases (see the chapter on «International and Foreign Exchange Markets&r
markets and
bond yields have recorded solid increases (
see the chapter on «International and Foreign Exchange
Markets&r
Markets»).
Given that Treasury
yields broke through levels that have been a fairly reliable barrier for several years now, it wouldn't be surprising to
see bonds stage a «relief rally» here, but both
yields and
market action remain unfavorable overall, holding the Strategic Total Return Fund to a roughly 2 - year duration, primarily in Treasury inflation - protected securities.
Bond yields in the major
markets have risen substantially since mid year, when significant downside risks to world economic growth were
seen by
markets (Graph 11).
I know some
market participants are taking the view that inflation will remain weak and further rate hikes will invert the curve, cause a recession, and we will
see even lower
yields on long term
bonds.
The end of 2013
saw bond yields at their highs and the US equity
markets making higher highs.
«What we've
seen post-election is we've
seen bond yields up, equity
market up, dollar firmer,» he said.
This second trend borne from ultra-loose monetary policy has forced many investors to seek out higher -
yielding alternatives including dividend stocks, which, on average,
yield more than 10 - year government
bonds in most major developed
markets, including Canada (
see chart below).
As of the first quarter of 2012, Turkey had a public debt balance equal to 43 % of annual GDP, making it one of the better financed governments in all of Europe (
see how the fiscal strength of many emerging
markets like Turkey in High
Yield International
Bond ETFs can deliver strong returns with low correlation).
We also compared the five - year annualized volatilities of the S&P Pan Asia
Bond Index (denominated in USD) with other major bond markets, such as the U.S. treasury, U.S. investment grade corporate, U.S. high yield corporate, Eurozone sovereign and Australian bond markets, see the exhibit be
Bond Index (denominated in USD) with other major
bond markets, such as the U.S. treasury, U.S. investment grade corporate, U.S. high yield corporate, Eurozone sovereign and Australian bond markets, see the exhibit be
bond markets, such as the U.S. treasury, U.S. investment grade corporate, U.S. high
yield corporate, Eurozone sovereign and Australian
bond markets, see the exhibit be
bond markets,
see the exhibit below.
Most investors couldn't
see both the high
yield bond market and the ETF
market, but if they could they would
see that the high
yield ETF was reflecting the price drops in individual high
yield bond trades.
While there was no significant or immediate impact on China's onshore
bond market, the yield - to - maturity tracked by the S&P China Sovereign Bond Index continued its tightening trend seen in 1H 2015, dropped 48 bps to 3.08 %, as of June 29, 2
bond market, the
yield - to - maturity tracked by the S&P China Sovereign
Bond Index continued its tightening trend seen in 1H 2015, dropped 48 bps to 3.08 %, as of June 29, 2
Bond Index continued its tightening trend
seen in 1H 2015, dropped 48 bps to 3.08 %, as of June 29, 2015.
The junk or high
yield bond markets in the U.S. have
seen diverse returns so far in 2015.
Contrarily, as part of the S&P Global Developed Sovereign Inflation - Linked
Bond Index that measures the performance of the inflation - linked securities
market, the S&P Japan Sovereign Inflation - Linked
Bond Index rose 3.84 % YTD,
see Exhibit 3, and its
yield - to - maturity has also shifted from negative territory to 0.648 % in the same period, which is a level last
seen in early 2012.
Similarly, RBC Global Asset Management will
see its fees reduced by 10 basis points for the RBC BlueBay Emerging
Market Corporate
Bond Fund (RECAX) and by 5 basis points for the RBC BlueBay Emerging
Market Select
Bond Fund (RESAX), RBC BlueBay Global High
Yield Bond Fund (RHYAX) and RBC BlueBay Global Convertible
Bond Fund.
One problem is that because they are
seen as the lowest - risk
bonds in the
market, their
yields tend to be relatively low.
Interest rates will be gradually rising as central banks wean the
markets off accommodation, while the steady rise in stocks could
see a correction if the
bond yield curve doesn't steepen or if some political deals and promised fiscal measures hit roadblocks.
We
see few opportunities in the U.S. high
yield bond market.
You
see, U.S.
bond yields rose because of positive U.S. data which reinforced expectations for a December rate hike, according to
market analysts.
Investors could replicate the Global Alpha & Beta ETF on their own, duplicating the fund's basic asset allocation model with the SPDR S&P 500 ETF (SPY) and Vanguard Total
Bond Market ETF (BND), which charge fees of.09 % and.10 %, respectively (or see more exotic bond ETF choices with higher yiel
Bond Market ETF (BND), which charge fees of.09 % and.10 %, respectively (or
see more exotic
bond ETF choices with higher yiel
bond ETF choices with higher
yields).
The S&P China Corporate
Bond Index has expanded rapidly in the past 10 years, as the
market value tracked by the index was RMB 18 trillion, which has increased 34-fold since the index's first value date on Dec. 29, 2006, and the
yield - to - maturity stood at 5.04 % with a modified duration of 2.44 (
see Exhibit 2 for the
yield comparison).
While both of these
markets have
seen high demand during 2017, a secondary
market influx of
bonds may be a catalyst that begins to push
yields higher.
The index has
seen a year to date return of negative 7.66 % helping to hold back the returns of the municipal high
yield bond market.
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.
We are prepared — and would find it encouraging — to
see the broader
bond market environment shift from one of fear and historically low
yields to one of renewed growth and potentially rising interest rates.
Even with a slip of 3 bps to the cheaper since month end, the high
yield municipal bond market tracked by the S&P Municipal Bond High Yield Index remains on track to making April the 17th consecutive month in a row where it has seen a positive monthly re
yield municipal
bond market tracked by the S&P Municipal Bond High Yield Index remains on track to making April the 17th consecutive month in a row where it has seen a positive monthly ret
bond market tracked by the S&P Municipal
Bond High Yield Index remains on track to making April the 17th consecutive month in a row where it has seen a positive monthly ret
Bond High
Yield Index remains on track to making April the 17th consecutive month in a row where it has seen a positive monthly re
Yield Index remains on track to making April the 17th consecutive month in a row where it has
seen a positive monthly return.
Beginning with the great recession we have
seen yields of insured
bonds higher than un-insured
bonds as questions about the viability of the insurers themselves were prominent worries in the
market place.
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.
As Japan's JGB
market has shown for a decade, you don't need high
yields to
see impressive gains in
bonds.
We devised an index to
see how much earnings growth the
market is pricing in a given time (S&P 500 E / P less 7 - year AAA
bond yield adjusted for one year of earning growth).
The world's major government
bond markets are
seeing their
yields rise (prices fall) as the first month of the new year winds down.
Since this move, UK
bond yields have tightened back to levels
seen just before the rate increase, indicating that despite rising global rates and inflationary fears, UK
bond markets may still have room to rise.
For example, in our high
yield bond and senior loan strategies, people often expect Oaktree to excel in more challenging credit
markets like we
saw in 2014.
As lower
yields become a persistent feature of the
markets, we're
seeing more investors make dedicated allocations to sectors with greater return potential, like investment - grade and high
yield bonds.
The majority of global equity
markets have posted negative returns,
bond yields are near record lows, the loonie has fallen to levels not
seen in over 11 years, and, to top it all off, there are some steep tax hikes on the immediate horizon.
See our posts 3 Ratings Agencies On Argentina: Still Junk
Bonds,
Yield Mania: Record Emerging
Market Debt Inflows, Argentina A Fave, 3 Experts: What's Next For Argentina Economy, Investments?