Not exact matches
He says that if you can get only a 2 % return on
bonds — rates we're seeing
today — and 5.5 %
yields on blue - chip stocks like BCE, it makes sense to overweight stocks, no matter what your age.
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.
We believe that long - term tax - free municipal
bonds that offer near - 4 %
yields (a 6.62 % taxable equivalent at
today's top rate and 6.15 % even at the new proposed top rate of 35 %) still offer superior value.
Brian Belski, BMO Capital Markets» chief investment strategist, says
bonds are still the main place for investors to stash money, even with
today's low
yields.
In order to understand the impact of longer duration and low
yields, let's use a real - life example of one of the largest
bond funds
today and look back at its history.
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
An article in
today's Wall Street Journal warns of the liquidity risk inherent in high -
yield bond ETFs.
Whatever happens to rates from here it makes sense to reign in your expectations as a
bond investor based on
today's low starting
yields.
Today, those
bonds yield just over 3 %; the 10 - year Treasury currently generates about 2.3 % (source: Bloomberg, as of 10/19/2017).
-LSB-...] happens to rates from here it makes sense to reign in your expectations as a
bond investor based on
today's low starting
yields.
The U.S. 10 - year
bond jumped, sending its
yield briefly below 2 percent
today.
Also, the
yield on the 10 - year Treasury note was over 6 % 15 years ago versus roughly 2 %
today, making the risk premium of stocks versus
bonds much higher
today than it was then.
RBC Global Asset Management Inc.
today announced that effective January 25, 2016, the name of RBC Monthly Income High
Yield Bond Fund will change to RBC Strategic Income
Bond Fund...
2016.03.21 RBC Global Asset Management Inc. re-opens PH&N High
Yield Bond Fund to new investors RBC Global Asset Management Inc.
today announced that PH&N High
Yield Bond Fund will re-open to new investors on March 28, 2016...
2015.12.10 RBC Global Asset Management Inc. announces fund name change RBC Global Asset Management Inc.
today announced that effective January 25, 2016, the name of RBC Monthly Income High
Yield Bond Fund will change to RBC Strategic Income
Bond Fund...
2016.04.05 RBC Global Asset Management Inc. closes PH&N High
Yield Bond Fund to New Investors RBC Global Asset Management Inc.
today announced that as of April 7, 2016, PH&N High
Yield Bond Fund («the Fund») will be closed to new investors...
2014.11.13 RBC Global Asset Management Inc. closes PH&N High
Yield Bond Fund to new investors RBC Global Asset Management Inc.
today announced the following change to the PH&N High
Yield Bond Fund...
Australia's central bank signaled
today it may resume cutting interest rates as soon as next month if weaker - than - forecast growth slows inflation, sending the local currency and
bond yields lower.
The 30 - year U.S. Treasury
Bond today yields about 2.7 %.
Another statistic courtesy of Mike Goldstein is that utility stocks, a high -
yield group I call the most
bond - like of all stocks,
today sell for almost the same P / E multiple as the S&P 500.
Michael Hasenstab: As we look toward the end of the year, we have to question whether the type of US government
bond yields we have
today make sense given rising inflation and the resiliency we've seen in the US economy.
I suspect FWIW that it's very likely
bond prices will be lower and
yields higher in five years
today.
The iShares High
Yield Corporate
Bond ETF has bounced from the low 60s five years ago to 94
today, a gain of over 30 percent.
Because of
yield - seeking speculation, stock and
bond prices
today are already where they are likely to be many years from
today.
Today, thirty year
bond yields are 1.11 % higher (111 basis points) than those on five year
bonds.
Even during the 1940's when
bond yields were low, stocks were much better values than
today, boosting long - term expected returns to about 6 percent.
It's also interesting to examine the changing significance and dynamics of the European
bond market in general, which has almost doubled in size since 2005 to more than $ 10 trillion
today, including government, investment - grade corporate debt and high
yield.
As Mr Draghi said in his press conference
today, the bank will be buying
bonds with a negative
yield of no more than -0.2 pc (which is the ECB's current deposit rate).
Low returns have followed characteristics that are more similar to
today — a CAPE ratio in the mid-20's, where dividend
yields,
bond yields, and inflation were below average.
Today the
yield on the 10 - Year Treasury
bond hit 3 percent.
A 10 - year government
bond today sports a
yield to maturity of around 1 %.
The SEC
yield reflects the average market
yield (
today) of the
bonds.
Even so, with the market's valuations
today being cheaper than the two previous times that the S&P 500 traded at these levels — and with the
yields on the two primary alternatives,
bonds and cash, being very low by comparison — this could be a great time to own companies by investing in th stock market.
Bond futures fell
today with
yields rising by 15 bps.
And that 2:1 ratio of
today's earnings
yield versus a triple - B
bond rate adjusted for taxes is such a compelling argument that people have a hard time with the rationality of it.
More than 70 % of the
bonds in developed - market government
bond indexes
today have
yields of 1 % or lower, as the chart below shows.
And I look around
today, the world and maybe think that U.S. stocks are expensive and
bonds are only
yielding 2 % or 3 %.
The question for any investor given
today's high stock multiples AND low
bond yields globally is how much this matters not only over an intermediate time frame, but over a period potentially
There is good rationale as to why the
bond markets are in the position they are
today; compressed spreads are the result of low rates coupled with strong demand out pacing supply for
yield assets.
Yet, as the Financial Times reported
today, the demand for MUNI
BONDS isn't there post Meredith Whitney as the
yields are insufficient to overcome the fear of default.
At
today's
yields, I believe
bonds are a risky investment.
Compared to
bonds, stocks have a higher current
yield, and unlike
bonds are likely to be worth more in a decade than they are
today.
Bond investors
today are faced with low
yields.
``... if those [people] are holders of government
bonds based upon a benign outlook for inflation, they had better cash some of them in, especially at
today's 4.0 percent
yield for 10 - year Treasurys.»
However, Graham's advice for
bonds is extremely relevant
today, he warns that when
bond market
yields are low, investors often look to steal an extra 1 - 2 % in
yield buy purchasing low grade
bonds.
We favor a more even
yield - curve exposure
today (with positions across maturities) and a more defensive (higher - quality) credit profile — as volatility and heightened credit concerns could lead to significantly wider spreads in the high -
yield -
bond market.
Today three Deutsche Bank ETFs — the Deutsche X-trackers Emerging Markets
Bond Interest Rate Hedged ETF (EMIH), the Deutsche X-trackers Investment Grade
Bond Interest Rate Hedged ETF (IGIH) and the Deutsche X-trackers High
Yield Corporate
Bond - Interest Rate Hedged ETF (HYIH)-- delisted from the NYSE Arca exchange and listed on Bats» BZX Exchange.
The
yield is the calculated real interest rate of the
bond, if it is bought at
today's bid price and kept until maturity.
Bond markets
today present investors with multiple challenges, including lower
yields and more risk than in the past.
Today, with the average
yield below 3 %, that 1 % increase would create a negative return of -3.41 % on a typical core
bond fund.