Sentences with phrase «yield bond strategies»

See how a high yield bond strategy fared when rates rose.

Not exact matches

Mr. Swaffield has described the «yield hog» chasing strategy that we used to laugh at when I was a junk bond market professional.

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

«Every time the bond market moves dramatically and unexpectedly higher in yield, the consensus forecast plays catch - up,» says Matthew Hornbach, Global Head of Interest Rate Strategy for Morgan Stanley Research.

Choose how you want to make money by following as many as five strategies: High - Yield, Dividend Growth, Low Risk, Real Estate, Options, and Bonds strategies

The new fund will reportedly focus on three strategies; using algorithms to identify attractive bond valuations, option overlays to provide protection against sudden market movements, and taking advantage of opportunities in yield curve movements.

Short duration bond strategies tend to have lower yields than long duration bond strategies, but when interest rates rise, short duration strategies will experience a smaller price drop.

Will dividend investors continue to purchase suddenly volatile, high - yielding strategies when bonds offer higher rates and less risk?

As we pointed out in our post last week, a withdrawal rate strategy should respond to market factors like equity valuations and bond yields as well as personal factors like age, retirement horizon, and expectations about pension and Social Security benefits.

The dollar's weakness should continue in at least the very short term, as bond yields keep on descending in the wake of QE2 and investors flock to non-dollar-denominated assets, says Marc Chandler, global head of currency strategy at Brown Brothers Harriman, based in New York.

Over time, MFS has been a leading innovator in the asset management industry, including creating one of the first in - house research departments in the mutual fund industry in 1932, launching the first high - yield municipal bond fund and the first global balanced fund, and more recently creating «outcome - oriented» products, such as its line of target - risk, target - date, and other asset allocation strategies.

For each strategy, he runs 10,000 Monte Carlo simulations of a 40 - year retirement based on historical annual distributions of 10 - year bond yield, equity premium, home appreciation, short - term interest rate and inflation rate.

Michael Pento, the president and founder of Pento Portfolio Strategies and author of the book, «The Coming Bond Market Collapse», and the producer of weekly podcast, «The Mid-week Reality Check», wrote in his commentary on CNBC that «the yield curve will invert by the end of this year and an equity market plunge and a recession is sure to follow».

With fully two - thirds of its money invested in domestic and foreign stocks, private equity and «absolute return strategies» (i.e., hedge funds), the New York State pension fund has a risky asset allocation profile typical of its counterparts across the country — because chasing risk is its only hope of earning 7 percent a year in a market where the most secure long - term bonds yield barely 2 percent.

Schroders Short Term Municipal Bond investment strategy seeks to maximize after - tax yield and income by investing across the spectrum of investment grade municipal debt.

Short duration bond strategies tend to have lower yields than long duration bond strategies, but when interest rates rise, short duration strategies will experience a smaller price drop.

Unconstrained strategies for bonds are hot now with yields so low.

For that reason, many looking at carry trading strategies will have to go out over the risk curve and borrow in a cheap major currency in order to buy a higher - yielding emerging market (EM) currency in order to earn a yield beyond that of higher - duration US Treasury bonds (considered safe yield).

The first strategy is outlined in The Four Best Bond Funds to Own Now, which recommends minimizing the risk of rising bond yields (and their accompanying falling pricBond Funds to Own Now, which recommends minimizing the risk of rising bond yields (and their accompanying falling pricbond yields (and their accompanying falling prices).

In this part of my portfolio I use more risky fixed - income securities, as there is a defensive strategy to address the higher volatility of the high - yield and other more risky bond funds.

Morningstar insists on comparing it to its high yield bond group, with which it shares neither strategy nor portfolio.

The goal of the strategy is to balance offense and defense: the long - term bonds give you higher yield, while the short - term bonds protect you from rising interest rates.

Intermediate strategies are generally the core bond position offering a balance between higher yields in exchange for more interest rate risk.

In a passive strategy, the simplest approach to municipal bond investing, the goal would be to find a bond with an attractive yield, hold it, and collect the scheduled interest payments and the principal upon maturity.

On October 1, 2014, SunAmerica High Yield Bond Fund (SHNAX) becomes SunAmerica Flexible Credit Fund, and that simultaneously make «certain changes to their principal investment strategy and techniques.»

The growing popularity of this strategy began to bring the yield on longer - term muni bonds down, flattening the muni yield curve, Citigroup's Friedlander explained.

How you answer these questions could suggest different investment approaches ranging from a more aggressive strategy, using a greater percentage of equities and high - yield bonds, to a more conservative strategy, using a greater percentage of bonds than equities, or something in between.

The All Asset and All Authority strategies have provided attractive cumulative returns since January 2016, when market conditions became more supportive of tactically elevated exposure to select «Third Pillar» assets (inflation - linked investments, high yield bonds, emerging market (EM) assets).

Usually, yield is higher with these types of bond strategies than with short duration, while interest rate risk is lower than long duration.

Short duration bond strategies have historically had lower yields than long duration bond strategies, but when interest rates rise, short duration strategies may experience a smaller price drop.

Schroders» municipal bond strategy seeks principal preservation with a high level of after - tax yield and income.

Because the yields of high yield bonds are so high, this is not a time to abandon aggressive strategies.

Their main performance metric is 7 - factor hedge fund alpha, which corrects for seven risks proxied by: (1) S&P 500 Index excess return; (2) difference between Russell 2000 Index and S&P 500 Index returns; (3) 10 - year U.S. Treasury note (T - note) yield, adjusted for duration, minus 3 - month U.S. Treasury bill yield; (4) change in spread between Moody's BAA bond and T - note, adjusted for duration; and, (5 - 7) excess returns on straddle options portfolios for currencies, commodities and bonds constructed to replicate trend - following strategies in these asset classes.

A yield curve strategy would position a bond portfolio to profit the most from an expected change in the yield curve, based on an economic or market forecast.

These systematic global investment strategies may provide an attractive and diversifying alternative source of investment returns to the low yields and low returns offered by mainstream stocks and bonds.

Yield curve strategies are more sophisticated interest rate anticipation strategies that take into account the differences in interest rates for different terms of bonds, called the «term structure» of interest rates.

Consider your own investing strategy — if you can get a higher rate of return from the relative safety of bond yields, would you not expect a higher rate of return to take on the higher risk of stock investment?

An investment strategy whereby the investor may sell one bond and replace it with another, to capture some advantage such as yield improvement.

The enhanced dividend yield strategy was developed by Jim O'Shaughnessy to provide a fixed income strategy based on stocks instead of bonds.

In the past the dividend yields on stocks were typically higher than bonds, so a working strategy was to sell stocks whenever yields dropped below bonds and then buy them back again when yields were higher than bonds.

High - yield - bond funds (38 %) and multi-sector bond funds (29 %) are also favored strategies in a rising rate environment, the survey found.

Compare this strategy based on P / E10 to a strategy based on the yield of the corporate bonds rather than the yield of the market.

2) Can't you create a bond strategy that provides more yield on average, while still preserving capital?

They use a positive momentum strategy on three asset classes — domestic equities, international equities, and high yield bonds, and a buy - and - hold strategy on investment grade bonds.

Corporate bonds offer additional yield, and the iShares 1 - 5 Year Laddered Corporate Bond (CBO) uses a time - honoured strategy to smooth out interest rate risk: it holds one fifth of its portfolio in five different «rungs,» with maturities of one to five years.

In this blog, we explore allocating VIX futures to tail hedge a high yield bond portfolio, with back - tested results for the following two hedging strategies.

Gundlach: The biggest mistake I made was not buying high - yield bonds in my total - return fund in October of 2002, when I put maximum weighting in every other strategy I ran.

The most basic strategy for investing in municipal bonds is to purchase a bond with an attractive interest rate, or yield, and hold the bond until it matures.

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.

However, a junk bond can be a useful diversification tool if you are intimately familiar with the company and its operations, and investing a small part of your portfolio in a high - yield bond fund might be a good strategy.