Sentences with phrase «yield bonds did»

On a risk adjusted basis, the high yield bonds did not add value to the portfolio.

He found that while the portfolios with high yield bonds did outperform by a narrow margin, between 0.2 and 0.5 percent per year over the long - term, they did so with significantly higher volatility than the portfolio containing only treasury bonds.

High - yield bonds did not sell off quite as much, as the shorter duration (4.97 years) index dropped by only -0.09 % for the day as measured by the S&P U.S. Issued High Yield Corporate Bond Index.

While credit risk might seem like a bad idea with the U.S. economy still weak and the rest of the world looking equally uncertain, high - yield bonds do offer bigger returns than government and investment - grade bonds.

High yield bonds do have some proponents.

Look at the R - squareds on the regressions versus Treasuries only, high yield bonds do not have any economically significant relation ship to Treasuries alone.

High yield bonds do care about the stock market.

And here's the rub: high yield bonds do not react to yields on Treasuries, except negatively, because when Treasuries rally hard, times are not good, and high yield bonds do poorly, with yields rising.

It doesn't matter where Treasury yields are, high yield bonds don't care.

Not exact matches

«Do you really want to take a 2.5 % annual return for 40 years, if you're thinking about current bond yields?

So, when an economist or bond fund manager makes an accurate forecast about Treasury yields, his or her clients are probably doing very well.

However, there does not appear to be much evidence that the demand for these investments is sufficient to create a yield gap between green and non-green bonds; tellingly, the province has not attempted to provide any information showing that a yield gap exists.

While I don't presume to read traders» (or trading computers») minds (see Barry ritholtz» note this morning about ex post facto rationalizations), generally speaking there is concern that the «taper» of long term bond purchases will cause bond yields (the percent of interest paid on them) to rise.

«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.

Since Draghi first hinted his intentions this summer — he famously said the ECB «is ready to do whatever it takes» — Italian and Spanish bond yields have fallen markedly.

While Fink is right to point out that low interest rates are putting a large burden on those of us trying to save retirement, he does not address the fact that central banks aren't primarily responsible for the fact that bonds of all types are yielding less today than we're used to.

«What we're doing is reducing exposure to more cyclical industrial corporate credit risk around the globe — high yield bonds, bank loans, investment - grade corporate bonds,» said Collins.

(«Do you know what a bond yield curve is?»

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.

Government bonds could help reduce default risk, but because of the length of maturity required to earn any meaningful yield, they do little to reduce duration risk - i.e. the overall sensitivity of a portfolio to interest rate rises.

«When the Fed was raising rates and bond yields were moving up, traditionally defensives don't do well, and more cyclical stocks tend to do better and financials do better,» he said.

To be sure, the new generation of savers faces a challenge in building a nest egg when investing choices are bleak: Do they go with risky stocks or super-low bond yields?

«We've been trying to tell you that for ages and all these guys come on your show and tell you for four, five years, bond yields are going up, they're going to heaven and they never do.

With bond yields so low, it doesn't cost companies much to borrow money to repurchase equity.

If at this point we found that using an interest rate of 6.8 % in our calculations did not yield the exact bond price, we would have to continue our trials and test interest rates increasing in 0.01 % increments.

Buffett lamented in 2010 that he didn't buy more corporate and municipal bonds during the credit crisis when yields made the securities «ridiculously cheap» compared with U.S. Treasuries.

The U.S. government does not issue high - yield bonds.

Bloomberg reported Thursday that after Draghi's bold words about protecting the euro last week, markets expect him to deliver some sort of drastic action to do so and to relieve pressure on bond yields, which have climbed steadily higher for Spain and Italy.

As long - term investments, many factors that roil the stock or even broader bond markets don't affect high yield, the panelists pointed out.

«We are hoping «mom and pop» can do a little bit better than the bond market at a time of historically low yields.»

«How do high - yield bonds fit into a diversified portfolios?

(Eco-groups will supplement with what tools of persuasion they have as well; just don't rely on them for wisdom on bond yields.)

Stocks slide on rising rates and yield curve inversion concerns, but a recession doesn't look likely, judging by other economic data and the high - yield bond...

Even with low yields and rising interest rates, bonds still tend to do their job by dampening volatility and minimizing losses for the overall portfolio.

A rise of 1 - 2 % isn't going to do much, and I don't think we'll rise by more than 1 - 2 % on the 10 - year bond yield anyway, so nobody needs to panic.

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.

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.

Higher risk bonds have had their prices bid up, and as a result they do not provide investors with as much yield as would be expected.

If this doesn't underscore that longer - term bond yields don't have to rise just because the Fed hikes rates, we're not sure what would.

For example, it does not include euro bonds («reverse Yankees») that are hot in Europe, where junk bond yields are at a ludicrously low 2.35 % on average, and the high - grade yield is just above zero.

The leveraged loan market just achieved something it hasn't been able to do since 2008 — moved within $ 100 billion of the U.S. high - yield bond...

Small stocks and many international stocks don't pay much income; income from high - yield and foreign bonds may be higher than for high - quality bonds, but also more variable.

Despite the flirtation of 3 percent yields on the 10 - year Treasury bond, many folks don't believe the multi-decade run of lower interest rates has ended.

If this doesn't underscore that longer - term bond yields don't have to rise when the Fed hikes rates, we're not sure what would.

As we've also mentioned before — and as this year's bond market behavior emphatically demonstrates — longer - term bond yields don't have to rise just because the Fed is hiking rates.

Credit Risk: Investors that are chasing yield in lower qualiity bonds are doing so by increasing their credit or default risk.

But long - term government bond yields fell to record lows for many euro area countries after a speech by ECB President Draghi on 21 November, which stressed that the ECB will do what is required to raise inflation and inflation expectation by adjusting the size, pace and composition of asset purchases, if the currently announced policies prove to be insufficient.

The 10 - year US bond yield breaking through the 3 per cent danger level worries India, as it does every emerging market.

The first thing they watch when doing so is how high or low interest rates on treasury bonds with different maturities are, which is also referred to as the yield curve.

Just because there is a rule stipulating that QE program purchases of sovereign bonds be in relation to GDP, the ECB has and will continue to do «whatever it takes» in order to prevent peripheral Eurozone bond yields from blowing out to near - reality levels.