Sentences with phrase «yield bonds which»

Here's my bias: at the first investment shop I worked in, the high yield manager told me that there is a nominal yield for high yield bonds which reflects the risk.

Not exact matches

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.
Bond yields, which move opposite price, fell on the day, with the Fed - sensitive 2 - year yield dipping to 2.49 percent.
«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 yield on the benchmark 10 - year Treasury notes, which moves inversely to price, was lower at around 2.43 percent, while the yield on the 30 - year Treasury bond was also lower at 3.046 percent.
Serge Pepin, the head of BMO Investments, says people should consider corporate or high - yield bonds — also known as junk bondswhich pay higher yields than federal issues.
Portugal has been profiting from lower bond yields, but as the ECB is expected to gradually lower its government bonds purchases, yields and spreads are expected to rise, which could hamper the improvement in government finances.
On Wednesday, bond yields in both the U.S. and Germany reached highs on the year, which likely helped trigger a selloff in equity markets Thursday.
The biggest losers were energy (XLE), consumer staples (XLP) and materials (XLB), all down more than 7 percent amid riding bond yieldswhich makes dividend stock yields less attractive and overrode other factors, like stronger oil prices and a weak dollar.
Those figures come in an atmosphere of low interest rates, which depress bond yields, and a relatively flat S&P 500 over the 12 months ending June.
The average BB rated bond, which is what Dell's current debt is rated, is trading at a yield of 5.8 %.
Poland's 10 - year government bond yield rose 7 basis points to 3.14 percent, its highest level in four weeks, rising more than U.S. and German yields which it often tracks.
The rise in bond yields, which investors fear could hurt equities, has been partly fuelled by the spike in crude oil prices, which on Tuesday crossed $ 75, boosting energy shares.
«Deflation fears have abated, which is good, but it has pushed up bond yields.
Normally, Canadian bond yields roughly trace U.S. bond yields, so you'd think an interest rate spike south of the border would provoke one here, which could hurt indebted Canadians and the housing market.
During a webcast presenting his 2017 outlook, Gundlach, the founder of DoubleLine Capital, said certain «second - tier» managers were focusing on 2.6 % as an important level for the 10 - year Treasury yield — a threshold beyond which the bull market in bonds would end.
The yield on Greece's three - year bond, which has surged from 4 % to 13.5 % since October, is now reflecting serious expectations that the country may end up outside of the Eurozone and unable to repay its euro - denominated debts.
The yield on the benchmark 10 - year Treasury notes, which moves inversely to price, was higher at around 2.314 percent, while the yield on the 30 - year Treasury bond was also higher at 2.877 percent.
Part of the problem is the BOJ maintaining its easy monetary policy, which erodes lending margins and yields from investments in government bonds.
However, in the spring of 2013, high - yielding stocks, which were basically trading as bond alternatives, got crushed.
The second is the nosedive in yields for the U.S. Treasury bonds, which could prove to be a big deal for the economy.
Bond yields set another round of multiyear highs — which could indicate inflation could emerge as a headwind.
The Armageddon default would also likely temporarily decouple trends in U.S. and Canadian bond yields, which historically tend to move closely.
The yield on the benchmark 10 - year Treasury notes, which moves inversely to price, was higher around 2.398 percent, while the yield on the 30 - year Treasury bond held near 3.002 percent.
For instance, here is Germany's 5 - year government bond yield which is clearly pricing in much more demand ahead.
Already, the bond yield curve, which measures the difference between short - term interest rates and long one, has been rising.
When Grogan has made shifts, which have usually involved purchasing real estate or bond investments, she has financed them either through new savings or by selling stocks that have already yielded high profits.
As a result, bonds, which rise in price when yields drop, had a very good year in 2014.
This increase in bond ownership can push prices up, and further depress long - term yields, which fall as prices rise.
BofA won bonds due in 2029 with a yield of 3.78 percent, which slightly increased the spread over the scale to 165 basis points from 163 basis points, according to MMD, a unit of Thomson Reuters.
On Monday, investors rushed into Treasuries as the S&P 500 and Dow Jones Industrial Average nosedived more than 4 percent - reversing a move on Friday when a spike in bond yields, which move inversely to prices, triggered an equity rout.
Yields on U.S. 30 - year bonds, which are more sensitive than shorter maturities to the outlook for inflation, have jumped almost 40 basis points since last Friday and a $ 15 billion auction of the tenor on Thursday showed waning appetite for the securities.
But a continuation of favorable economic growth and low default levels — which we expect — and measured Federal Reserve tightening — which we also expect — should support more narrow high - yield bond spreads for some time to come.
For example, you might pay $ 9,717 instead of $ 10,000 for your 30 - year bond, which would give you a yield of 2.89 percent instead of the stated coupon yield of 2.75 percent.
Let me remind you that monetary policy operates with a long lag and there are many transmission channels through which interest rate changes affect the economy, including longer - term bond yields and the exchange rate.
Invest in high - yield bonds and dividend - yielding stocks, says the BofA - Merrill team, which is overweight high - grade and high - yield corporate bonds, including financial sector names that are especially sensitive to the housing market.
We also like tax - exempt municipal bonds, which currently offer attractive yields.
«We're very happy with an 18 percent which is achieved in a less volatile, pretty conservative manner,» said Carlson, noting that the firm focuses on short - term, high - yield bonds.
He covers the whole yield curve, from one year out to the longest bond available (useful info in itself, which varies from under 20 up to 40 years).
The earnings yield on enormous blue - chip stocks such as Wal - Mart, which had little chance to grow at historical rates due to sheer size, was a paltry 2.54 % compared to the 5.49 % you could get holding long - term Treasury bonds.
A key factor that could turn the tide for sovereign debt yields is the Bank of Japan, which meets Tuesday and Wednesday, and may decide to stop buying longer - duration bonds, according to reports.
If long bond inflation concerns are indeed correct (which I believe they are), the Fed will have to ratchet short term rates at a faster pace which may re-invert the yield curve.
But the simmering civil war in Syria still holds the potential to create a much wider field of chaos that triggers a rush into safe havens bonds, which in turn keeps Treasury yields contained.
More interesting is the return on the BofA Merrill Lynch U.S. High Yield Energy Bond index, which has a whopping 18.26 % return YTD, but over the past year still has a negative 15.65 % return.
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.
Banks plunged as bond yields continued to fall, which will mean lower interest rates on loans.
The apparent one - to - one relationship between Treasury yields and equity yields during that span (which is the entire basis for the «Fed Model») is anything but a «fair value» relationship between stocks and bonds.
One important concept to understand is yield, which is the annual income on a bond, based on its market price; it's sometimes used interchangeably with «interest rates.»
And even if the indicator was valid (counterfactually), the article asks readers to accept as given that earnings are properly reported here, that they will grow by nearly 50 % over the coming year, and that investors are willing to key the long - term return they require from stocks to the yield on 10 - year bonds, which has been abnormally depressed in a flight to safety.
The Government of Canada 10 - year bond yield is currently 1.4 %, which offers a real yield of minus 0.6 % (1.4 % yield less 2 % inflation) over 10 years.
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