Sentences with phrase «yield bonds tend»

In general, high - yield bonds tend to produce attractive total returns when the economy is growing and interest rates are stable or declining.

In addition, high yield bonds tend to have higher interest rate risk and liquidity risk, particularly in volatile market conditions, which makes it more difficult to sell the bonds.

In addition, high - yield bonds tend to have higher interest rate risk and liquidity risk, particularly in volatile market conditions, which makes it more difficult to sell them.

Stocks and high yield bonds tend to do well after the first day of the new year.

Spread curves of high yield bonds tend to invert when the Treasury yield curve is steeply sloped.

High yield bonds tend to move more closely with the stock market.

Both equities and high yield bonds tend to zig and zag, together.

Because investors are being asked to assume this risk, high yield bonds tend to come with higher coupon rates, which can generate additional investment income.

Not exact matches

(Bond yields move inversely with bond prices, and rising yields tend to signal expectations of higher growth and inflation ahead and, therefore, higher interest ratBond yields move inversely with bond prices, and rising yields tend to signal expectations of higher growth and inflation ahead and, therefore, higher interest ratbond prices, and rising yields tend to signal expectations of higher growth and inflation ahead and, therefore, higher interest rates.)

Because the central bank's purchases represent increased demand, it tends to push up government bond prices, thus lowering yields.

The Armageddon default would also likely temporarily decouple trends in U.S. and Canadian bond yields, which historically tend to move closely.

For instance, Morningstar found that passively managed target - date funds tend to have fewer holdings in high - yield bonds and Treasury inflation - protected securities than their actively managed counterparts.

«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.

Most investors shy away from bonds because they yield (or return) less than equities and tend to be more complex in nature.

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.

This convergence of yields has implications for the behaviour of investors: with bond yields in different countries tending to move together, investors have found it more difficult not only to diversify their portfolios but to find trading opportunities.

However, given that many bond yields are well below 4 % — and retirees tend to invest heavily in bonds — the appropriateness of this rule has been called into question.

High - dividend stocks such as utilities and phone companies fell; those stocks are often compared to bonds and they tend to fall when bond yields rise, as higher bond yields make the stocks less appealing to investors seeking income.

When the cost of living has eaten away at government bond yields, investors have tended to seek more attractive stores of value, including gold.

Slow but steady economic improvements tend to favor high - yield bonds.

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.

In Canada, fixed - rate mortgage rates tend to follow the trajectory of long - term Canadian bond yields, which, in turn, track U.S. bonds.

Stocks with a history of consistently growing their dividends have historically tended to perform well and exhibit less volatility in a rising rate environment, while high yielding dividends, often considered «bond - like proxies,» have tended to be more vulnerable (due to their high debt levels) and have historically followed bond performance when rates rise.

The risk taker, for example, tends to make risky investments such as real estate investment trusts, options, currency trading, and high yield bonds.

We prefer value stocks, those that look relatively cheap on metrics such as book value and tend to perform well when bond yields rise.

In the short run, rising equity values would tend to drive bond prices lower and bond yields higher than they otherwise might have been.

He also discussed the large - scale asset purchases of the Fed's quantitative easing program, casting doubt on much of the literature of the day — which tended to find positive, but limited effects of such purchases on reducing bond yields.

Short - term bonds tend to be less vulnerable to rising rates than longer - term bonds, while typically providing a higher yield than cash.

Fixed - rate mortgages tend to move in sync with government bond yields of a similar term, reflecting the change in borrowing costs.

Higher risk (higher yield) bonds tend to be closely correlated with equities which means that such bonds do not really dampen volatility or smooth out returns over time when combined with equities in a portfolio.

Hosansky added that companies that issue investment - grade bonds will tend to benefit much more than those that issue high - yield bonds.

They often include instruments such as high yield, emerging market debt and other more esoteric instruments that tend to be missing from traditional bond funds.

As a result, its yield will tend to move toward prevailing money market rates, and may be lower than the yields of the bonds previously held by the Fund and lower than prevailing yields in the bond market.

Bonds tend to be more conservative but yield less than stocks.

Historically, stocks do tend to trade at higher valuations when bond yields are lower.

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.

The S&P 500 High Yield Corporate Bond Index tracks the junk bonds of issuers of the S&P 500 and as the yields indicate, on average, they tend to be better quality than the bonds in the broader index.

In the short run, rising equity values would tend to drive bond prices lower and bond yields higher than they otherwise might have been.

The U.S. interest rate hike signals that the Fed is feeling optimistic about the economy and tends to cause bond yields on both sides of the border to move higher, said Rob McLister, founder of RateSpy.com.

Thus, preferreds tend to be a reliable stream of income that yields more than bonds, but it can also be used as a diversifier since the correlation of returns between bonds and preferreds is low.

For example, high - yield bonds have historically tended to fare well during periods of rising rates.

Call Risk Appears Limited for Preferreds Both preferreds and high yield bonds share call risk, though preferreds tend to have more callable issues.

Not surprisingly, both charts show that when inflation is climbing both bond yields and earnings yields tend to be pressured higher.

High - yield bond funds tend to invest in riskier bonds.

That's because bond yields and stock valuations tend to track each more closely at higher levels of inflation.

Short - term bonds tend to be less vulnerable to rising rates than longer - term bonds, while typically providing a higher yield than cash.

For a large part of the historical data, bond yields and earnings yields tended to move more closely together.

And the relative changes in yield levels - for both bonds and stocks - tend to be commensurate with the change in the level of inflation during the same period.

If you held the bond fund for a similar ten - year period (as the duration of a single bond), the funds annual total returns tend to approximate the starting yield.

Vertical factor: spread of Baa bond yields over Aaa bond yields — Hypothesis: When spreads are high, stock valuations tend to be low.