Have costs of holding high
yield debt risen?
Not exact matches
U.S. government
debt yields rose Monday amid growing optimism over tax reform from Washington and strong economic data.
Businesses exposed to countries where sovereign
debt yields are
rising will find it more expensive to refinance their credit.
Until the wayward states knuckle under, the ECB will hide behind EU rules against monetizing sovereign
debt and let
rising bond
yields keep the pressure on politicians.
The 10 - year U.S. Treasury
yield rose 5.2 basis points to 3.035 percent on Wednesday, driven by worries about the growing supply of government
debt and inflationary pressures from
rising oil prices.
A rapid
rise in short - term
yields in U.S. government
debt is restoring their appeal.
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
Treasury prices
rise, pushing
yields lower, on Monday after solid appetite for two batches of government
debt auctions see strong bidding, ahead of what's set to be a deluge of sales of government
debt in 2018.
Little
debt, lots of profit... it's no wonder dividend
yields have
risen to 2.5 % and are expected to
rise further.
Investors should monitor current events, as well as the ratio of national
debt to gross domestic product, Treasury
yields, credit ratings, and the weaknesses of the dollar for signs that default risk may be
rising.
And in the face of record valuations and record
debt, we're seeing
rising interest rates (the
yield on the 10 - year Treasury hit 3 % last week for the first time since 2014) and other signs of inflation like
rising oil and copper prices.
Western allies press Trump to maintain nuclear deal with Iran: Reuters US intelligence monitors Iranian cargo shipments into Syria: CNN A trade war is a major risk for China's
debt - ridden economy: CNBC Federal judge orders gov» t must accept new DACA immigration applications: WaPo Unification of Koreas still unlikely as leaders prepare to meet: Reuters US Consumer Confidence Index rebounded in April after March decline: CB New home sales in US increased to 4 - month high in March: MarketWatch Richmond Fed Mfg Index turns negative for first time since 2016: Bond Buyer S&P Case - Shiller Home Price Index surged in Feb, up 6.3 % y - o - y: CNBC Federal Housing Finance Agency: US house prices continued to
rise in Feb: HW Corp bonds with lowest investment - grade rating look vulnerable: Bloomberg 10 - year Treasury
yield reaches 3.0 % for first time since 2014: CNN Money
As
yields on preferred shares
rose over the past year and a half, many corporate issuers turned to
debt markets as a cheaper source of financing for their funding needs.
As that option is politically rejected, bond
yields on Italian and Spanish
debt will once again
rise to thresholds their governments simply can't afford to pay.
Moreover, the
yield on industrial bonds in the Dow Jones Bond Average continues to
rise, further widening the risk premium on corporate
debt.
U.S. government
debt yields rose Friday, as investors received their first sign that inflation may be on the
rise in the latest jobs report.
Thus, even as longer treasury
yields quit
rising, the market rate on corporate
debt starts soaring, often quite dramatically.
The volume of global high -
yield corporate
debt rose 19 % to $ 462 billion in 2013, the strongest volume since record keeping began in 1980, according to Thomson Reuters.
The cost of financing those
debts is
rising fast, with the recent sell - off in Portuguese sovereign bonds pushing
yields to levels not seen since October 2014.
One would expect that an upward movement in Treasury
yields would cause volatility in the fixed income space, provoking the
yield of USD - denominated
debt worldwide to
rise faster than Treasuries.
With the
rising interest rate and Treasuries»
yields, the question of servicing the mounting
debt could become a problem for the US economy, the analyst warns.
At the same time that
yields on Treasuries are declining,
yields on riskier
debt are
rising.
This saw
yields on Japanese government
debt rise steadily in March and April to around 1.5 per cent, 30 basis points above their mid-February low.
Rising yields in the United States could make it harder for Beijing to keep managing its tremendous
debt problem.
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.
And when Fed funds are
rising, the opposite happens — funding rates for those clipping interest spreads
rise, and the expectation of further
rises gets built in, leading some to exit their trades into longer and riskier
debts, which makes those
yields rise as well, with uncertain timing, but eventually it happens.
-LRB-...) The strength of demand for eurozone «periphery»
debt reflected increased investor appetite for higher -
yielding government bonds as well as
rising confidence in the creditworthiness of eurozone economies.
Now that over $ 5 trillion of sovereign
debt (with credit risk
rising, not falling) trades with a negative
yield, we can fairly overlook bonds as an investible asset class.
The
rise in
yields as prices fall makes more German
debt eligible for ECB purchases, under its own arcane rules.
While the high (and
rising) U.S.
debt / GDP ratio does lead to some concern, there is little convincing evidence that this alone will cause U.S.
yields to
rise.
The economy shrank by 2.3 % last year, the cost of two - year government
debt tripled in a week, and 10 - year
yields rose above 6 %.
The cost of
debt to Asian borrowers, as measured by sovereign bond
yields, has not
risen much at all.
Moreover, even under a very stressed scenario — in which Spain is forced to finance the $ 200 - 220 billion it needs from today until early 2014 at
yields of 8 - 9 per cent — the effect on the average interest rate of the total outstanding
debt would be limited,
rising from the current 4.1 per cent to about 5 per cent.
Earlier this week the
yield on Italian ten - year
debt rose to a record seven per cent before falling back by around 0.5 percentage points.
Many people realize that
rising interest rates affect
yields and prices, but what others might not know is that if you stick closely to short - term, investment - grade
debt securities - the very kind our Near - Term Tax Free Fund (NEARX) invests in - the impact of such a rate hike is not as dramatic as some investors might think.
The dollar is weak, and default swaps on US government
debt are
rising in
yield.
Rising rates could, over time, help restore the attractiveness of lower - risk government and shorter - duration
debt — at the expense of more richly valued credit sectors that have benefited from the hunt for
yield in recent years.
With that said I will venture that
yield of XOM will continue to
rise for at least another year as the stock price slowly deteriorates to match the companies underlying fundamentals of increased
debt and reduction in FCF.
As interest rates tends to
rise in anticipation of stronger economic growth, assets which are more sensitive to economic growth (such as high
yield debt) can still perform well.
Recently though, the 10 - year note
yield for many of these countries has
risen above their historical average cost of issuing
debt.
A decision not to raise the
debt ceiling south of the border could see interest rates there
rise while Canadian
yields could drop, Erica Alini cited CIBC economist Avery Shenfeld as saying.
The secondary screens require at least a moderate dividend
yield, a history of
rising dividends, low levels of
debt and a low payout ratio.
The S&P 500 ® Investment Grade Corporate Bond Index, which is designed to measure the performance of U.S. corporate
debt issued by constituents in the S&P 500 with an investment - grade rating,
yielded 3.85 % as of April 25, 2018 —
rising 74 bps year - over-year.
Issuance plummets as
yields rise and prices fall for risky
debt.
I will moon walk down the m50 dressed in a Barney the dinosaur outfit if an EM asset manager with $ 300mn AUM pays out a dividend with a
rising $ and US 10 year
yield given external $ EM
debt.
And when Fed funds are
rising, the opposite happens — funding rates for those clipping interest spreads
rise, and the expectation of further
rises gets built in, leading some to exit their trades into longer and riskier
debts, which makes those
yields rise as well, with uncertain timing, but eventually it happens.
They screen for companies with at least a moderate dividend
yield, a history of
rising dividends, low levels of
debt and a low payout ratio.
Majority of the rate sensitive stocks came under pressure due to the
rising bond
yield, and I decided to go little deep into
debt and accumulate some assets.
Immediately after the 2016 election, investors sold government
debt en masse, causing the 10 - year
yield to
rise from 1.88 percent on November 8 to 2.60 percent five weeks later.
Deutsche Bank is seeking to take advantage of
rising real estate values and investor appetite for higher -
yielding debt.