The same is true of short bets against energy high -
yield bonds in late 2015, the euro in late 2011 and Greek banks before that.
Bank loans are often similar to high
yield bonds in that they can carry a high level of credit risk.
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.
If you do choose to include high
yield bonds in your portfolio, they should only make up a small portion of your fixed income holdings.
However, including high
yield bonds in portfolios has been less exciting.
I do not recommend high
yield bonds in the portfolios that I oversee.
Many North American energy companies have borrowed significantly in the public debt markets to finance their operations, and many of the high -
yield bonds in this space have lost value in recent months.
We thought they would widen, so we allocated down from high -
yield bonds in June.
Historically, the default rate for high -
yield bonds in the U.S. has been under 4 per cent over the past 30 years.
The conditions have fueled a rally in Portugal's sovereign bonds so far this year, although they remain the second - highest
yielding bonds in the eurozone, behind those of Greece.
Whether or not kids result (sterility, old age, same se.x relationship), se.x
yields a bond in the same way.
Even more strange was their (failed) attempt to issue a high
yield bond in June.
In this scenario, a very steady return is generated each year, and the return will be very close to the highest -
yielding bond in the portfolio.
Year to date the higher
yielding bonds in the S&P Municipal Bond Insured Index have contributed to outperformance verses the rest of the investment grade market place.
For those who want higher -
yielding bonds in rising rate environments, using short - term high - yield bonds could fulfill that purpose.
Of course we still have some better
yielding bonds in our portfolio, but they will expire in 2018 and 2019.
Not exact matches
LONDON, May 1 (Reuters)- The dollar broke into positive territory for the year and
bond yields were creeping higher again on Tuesday, as the recent rise
in oil prices fuelled bets that the U.S. Federal Reserve will flag more interest rate hikes this week.
It was nudging up at 2.96 percent on Tuesday, which also left the gap between U.S. and German 10 - year benchmark
bond yields just off its widest level
in nearly three decades.
LONDON, May 1 - The dollar broke into positive territory for the year and
bond yields were creeping higher again on Tuesday, as the recent rise
in oil prices fuelled bets that the U.S. May Day holidays across Asia and Europe meant trading was thinner than usual, though there was more than enough news flow to keep those...
The rise
in U.S.
bond yields has dented emerging market currencies and
bond markets, including those
in Asia.
LONDON, April 23 - Hamstrung by a renewed slump
in volatility and lack of clear market direction, FX and
bond speculators are making historically big bets on a lower dollar and higher
yields.
The dollar has rallied through much of the past week as concerns over the U.S. - China trade dispute receded, and as the U.S. 10 - year
bond yield shot past 3 percent for the first time
in four years.
NEW YORK, May 1 - The dollar broke into positive territory for the year and U.S.
bond yields inched higher again on Tuesday as the recent rise
in oil prices fueled expectations the Federal Reserve could flag more interest rate hikes at its policy meeting this week.
The
bond purchases, the third round of quantitative easing embarked upon by the Fed
in the wake of the 2008 financial collapse and subsequent recession, have kept interest rates and
bond yields low.
In a client note on Thursday titled «Yanking down the
yields,» the interest - rates strategist projected that
bond yields would be much lower than the markets expected because central banks including the Federal Reserve were reluctant to raise interest rates.
Bond yields were mixed and credit spreads narrowed further: Weekly BAA commercial bond rates were not reported this week, presumably due to closures in the financial mark
Bond yields were mixed and credit spreads narrowed further: Weekly BAA commercial
bond rates were not reported this week, presumably due to closures in the financial mark
bond rates were not reported this week, presumably due to closures
in the financial markets.
Much of the shift lower
in our
yield forecasts derives from the view that the ECB [European Central Bank] will continue to buy
bonds in its QE [Quantitative Easing] program.
That's exactly what has happened over the last month, as shown
in this graph of the
yield on the 10 year US treasury
bond for the last year (keep
in mind that
yields going up means prices going down):
In addition to the aforementioned concerns, Golub noted fears about whether economic growth won't meet lofty expectations and signals being sent from the
bond market, where a narrower gap between government
bond yields is kindling fears that a recession is looming.
The lack of proper and transparent interactions between algorithms poses a security risk
in case unintended interactions between algorithms create incidents — like the U.S. Treasury
Bonds «flash crash» of October 2014 that saw
bond yields drastically drop briefly before the algorithms corrected themselves.
«The credit quality, this move up
in interest rates, this loss of a four - decade uptrend
in bonds, downtrend
in yields, that's the source of the volatility which I think far surpasses these amazing developments technology has come across
in the last couple of decades,» said Gordon.
The
bonds of iHeartMedia have long been
in the basket of «distressed debt,» meaning their prices have fallen so far to where their
yields are at least 10 percentage points higher than equivalent Treasury
yields.
REITs have long been popular with income - seeking investors
in this era of miniscule government
bond yields.
Since the
bond market's «flash crash» back
in October — when US 10 - year Treasury
yields fell 34 basis points, or 0.34 %
in one morning — concerns regarding liquidity and how resilient the
bond market might be to shocks have lingered around the market.
Beata Caranci, chief economist at TD Bank, doubts another rate hike
in the U.S. would have much of an impact on
bond yields in Canada.
Two - year Treasury
bond yields rose above the average S&P 500 stock dividend
in January for the first time since 2008.
Sure enough, the
yield on a Canadian 10 - year
bond has risen
in tandem with its U.S. counterpart since the start of the year, even as Poloz has signaled caution ahead.
Also, as
bond rates rise, some of the money that migrated over from the
bond market
in search of higher
yields will return to the safety of fixed income.
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.
Exchange - traded funds that track high -
yield bond indexes have been the beneficiaries of a cash surge
in recent weeks.
In January, Miller said a rise in the 10 - year Treasury yield above 3 percent «will propel stocks significantly higher, as money exits bond funds for only the second year in the past 10.&raqu
In January, Miller said a rise
in the 10 - year Treasury yield above 3 percent «will propel stocks significantly higher, as money exits bond funds for only the second year in the past 10.&raqu
in the 10 - year Treasury
yield above 3 percent «will propel stocks significantly higher, as money exits
bond funds for only the second year
in the past 10.&raqu
in the past 10.»
In the
bond market, the 10 - year US Treasury
yield fell less than 1 basis point, to 2.79 %, near the key 3 % level that traders are closely watching.
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.
He started
in high -
yield bonds and went on during the internet boom to turn a million dollars
in patent acquisitions into a portfolio of software intellectual property worth $ 150 million.
In the short - term, however, this increased leverage may actually be bullish for junk
bonds, corporate
bonds, emerging market debt and mortgage - backed securities as it brings higher prices and lower
yields, he said.
Gundlach predicts that both high -
yield bonds and a portfolio of mortgage - backed securities could return about 6 percent
in 2013.
The
yield on the U.S. 10 - year Treasury jumped to its highest level since 2014 on Friday morning, underlining a wider move
in bond markets caused by central banks moving away from financial crisis policies.
The sell off
in the market for high
yield debt, or junk
bonds, is now hitting a type of structured
bond that is similar to the the type that blew up
in the financial crisis.
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.