Sentences with phrase «yield debt because»

Edelman says that many investors have piled into long - term bonds and high yield debt because they come with higher yields.

Not exact matches

Many people have bought into this space because it's one of the only places to get decent yield, but she points out that a number of companies only offer corporate debt because of market demand.

This is especially true on the downside because high yield investors typically are «privy» to bank credit information — trust me, this is true, as our high yield desk was next to the bank debt trading desk and we were very friendly with each other — and can see when corporate numbers are deteriorating well in advance of equity analysts and investors.

Higher yielding fixed income offers those higher yields because the issuers of the bonds have a better chance of defaulting on their debt.

Find out why negative interest rate policies are failing because bond buyers do not want a negative yield and saturated borrowers want to pay off debts.

«The seeds and the fertilizers are too expensive for poor farmers like us, that we become buried in too much debt while our yields began to decline because of the failure of the HYVs,» said Nazareno.

The advice on avoiding high - yield debt needs more explanation, because bonds with high payouts are not especially sensitive to interest rate movements.

At present, the relationship between earnings and bond yields seems tighter because of the large substitution of debt for equity going on, but that's not a normal thing in the long run.

Let's call it a Treasury Bond Bubble, because other classes of intermediate term debt have significant yield spreads over Treasuries because of the current economic volatility.

Because U.S. debt is not considered as «safe» as it used to be, investors could demand higher yields.

I'm sorry, but with an overindebted economy, we can have a structural, not cyclical recession, where the shape of the yield curve doesn't matter much because of all the debt.

This is on top of the problem that when high - quality long interest rates are so low, it is typically a bad time to try to make money in financial assets, because returns on risky assets are typically only 0 - 2 % percent higher than the yield on long BBB / Baa debt over the long run.

Schwab Intelligent Portfolios excelled largely because of its fixed income allocation, which included high - yield bonds and international debt, according to the Robo Report.

However, high yielding stocks are a VERY crowded trade because the Central Banks have kept interest rates low, probably in large part to facilitate servicing of the national debts and to allow the investment banks to recapitalize and at least partially recoup their bad leveraged bets.

If company ABC (Rating: AAA) wanted to issue bonds at 5.00 % their competitor XYZ (Rating: AA) would have to pay a higher yield to attract the equivalent investment because of the perceived lesser quality of their debt.

But make it a priority to kill off credit card debt before any other, because it's ridiculous to pay 15 % interest when your savings account yields 0.01 %.

Interest rate risk is an important consideration for investors of debt because of the impact interest rates have on the yields and price of the debt held.

I decided to write this article this night because I decided to run my bond momentum model — low and behold, it yelled at me that everyone is grabbing for yield through credit risk, predominantly corporate and emerging markets, with a special love for bank debt closed end funds.

The boom happened because of loose monetary policy, which led many people to adjust their risk posture up, whether in commodity speculation, or in high yield debts.

They see companies issue debt below their dividend yields and don't understand why there's a market ther, because they are thinking «retail» and not «institutional.»

Because of the increasing level of cash flows necessary to service the debt relative to the economic yield on the assets, it doesn't take much fluctuation to make the most marginal borrowers question whether they can hold onto the assets.

Maybe you could also shed some light on this quote by Colm O'Shea «A lot of people say there is apparently no inflationary threat from the growing U.S. debt because bond yields are low».

Our research on the Fundamental Index ® concept, as applied to bonds, underscores the widely held view in the bond community that we should not choose to own more of any security just because there's more of it available to us.10 Figure 9 plots four different Fundamental Index portfolios (weighted on sales, profits, assets and dividends) in investment - grade bonds (green), high - yield bonds (blue) and emerging markets sovereign debt (yellow).11 Most of these have lower volatility and higher return than the cap - weighted benchmark (marked with a red dot).

For the borrower, that's enticing because blending the rates of the conventional mortgage and mezzanine debt yields an «all - in» rate of only 6.5 %, he says.

Lately we've invested a lot of cash with some debt (about 50 - 60 % LTV in most cases) because we've found deals in our market with good yields.