Sentences with phrase «yield debt which»

Money is now flowing out of high yield debt which has been priced as if defaults will remain very low.

Not exact matches

Second, while it makes sense that an environment in which investments, like government debt, are yielding a smaller return might cause people to spend less today in order to make their retirement goals, there just isn't a lot of evidence that this happens in the real world.
The average BB rated bond, which is what Dell's current debt is rated, is trading at a yield of 5.8 %.
The sharp jump in debt yields in tandem was mirrored by a rally in commodity prices, which suggests that investors are becoming less worried about the risks of deflation.
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.
In case of a serious default, one in which the U.S. postpones or suspends any debt payments, «Canadian yields could actually drop as a result of both the economic slowdown and safe - haven flows,» Shenfeld wrote in a recent research note.
Given Osiris's strong five - year record of growth and profitability, Bowers was able to help make Miller's wishes come true: he structured a deal that raised $ 13 million from a large local pension fund — the Pennsylvania Public School Employees Retirement System (see «What Pension Funds Want,» [Article link]-RRB--- by selling a package of subordinated debt and convertible preferred stock, which included a fixed interest rate and dividend yield.
In the Doug Purvis Memorial Lecture, Governor Stephen S. Poloz shows how changing the mix of monetary and fiscal policies can yield the same outcomes for growth and inflation, but lead to different results for public sector and private sector debt levels, which can impact financial stability.
To fund those programs, the U.S. would need to issue more debt which could also send yields higher.
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.
Constant Maturity - The constant maturity takes place when there is a quoted return, or yield, on a financial instrument, that is fixed and it involves comparing the instrument in question with other financial instruments that are also fixed, but that have different maturities, which is the given date the debt become due for payment.
Investing in higher - yielding, lower - rated, floating - rate loans and debt securities involves greater risk of default, which could result in loss of principal — a risk that may be heightened in a slowing economy.
I screened for Aristocrats which had a sustainable payout ratio, a reasonable dividend yield, relatively low debt / equity ratio, and positive projected earnings.
Indeed, by the end of October, yields on two - year debt stood below zero for almost every member of the eurozone, which means investors were effectively paying to own it.
The company cut their dividend -32.3 % to $ 0.40 / share (10.3 % annualized yield), which will enable SunCoke to replenish cash and reduce debt so they can achieve their 3.5 x target leverage ratio.
In December, PK repaid $ 55 million in maturing high - yield bonds, which carried a 7.5 % coupon, leaving the company with a forward debt maturity schedule that is well - balanced and very manageable with no major maturities until 2021.
Privately held debt of the U.S. government as a share of GDP increased this cycle to 74 % from 39 % in 2008, prompting concern that the U.S. is doomed to a debt trap in which high debt and low yields result in more debt.
An inverted yield curve is an interest rate environment in which long - term debt instruments have a lower yield than short - term debt instruments of the same credit quality.
This may surprise some given the recent default announcement of Puerto Rican debt, which is a vivid reminder of why it's important for investors to be completely aware of what they own and the risk they take in search of yield.
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.
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.
The Oakmark Equity and Income Fund invests in medium - and lower - quality debt securities that have higher yield potential but present greater investment and credit risk than higher - quality securities, which may result in greater share price volatility.
Still, we've observed diminishing returns from the Fed's interventions, there is no political tolerance for the Fed to intervene in securities involving any credit risk that would be borne by U.S. citizens (purchasing European sovereign debt, for example), and the yield on the 10 - year Treasury bond is already down to 1.7 %, which is far below where it stood when prior interventions were initiated.
As noted in the Fund's June 30, 2016 Semi-Annual Report, the Fund held approximately $ 30 million market value of TXU Energy's first lien debt which was yielding approximately 15 % at the time it was converted into equity in the new TCEH Corp..
Essentially, the new rental income generated by the properties bought with new debt or issued shares isn't high enough (due to low cash yields on new properties) to offset the greater share count, which raises the cost of the dividend.
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.
Declan Fallon looks at three stocks which paid a dividend yield of at least 5 %, had no long term debt and had a market cap over $ 100m.
As of August 1, yields on some prime funds, which primarily invest in riskier corporate debt and may pay higher yields, were as high as 1.2 % for a minimum initial investment $ 2,500 to $ 1 million or more, with an industry average 0.64 %.
«We've also seen the compression of spreads on high - yield debt, which certainly looks like a reach for yield type of...
Indeed, in the event of a near - term expectation of debt default, we would probably see 1 - year Greek yields spiking above 40 %, and 3 - month yields well above 100 % annualized (which would be associated with 3 - month bills trading well below 85 % of face).
This meant that municipal bonds, which typically yield less than Treasuries before tax, began to offer yields higher or comparable to federal government debt on a pre-tax basis.
But rather than go back to the same well one more time with a QE3, the Fed decided in September 2011 to implement Operation Twist, which is an effort to change the shape of the Treasury yield curve by purchasing longer term debt and selling short term paper.
The company issued junk debt earlier this year at 5.35 %, issues which still yield more than 300 basis points more than comparable U.S. Treasuries.
Among other things, the fund's value strategy results in an attractive portfolio of emerging markets companies characterized by relatively low debt, low default rates and attractive yields, which are some of the main factors behind the fund's success.
Under J.R.'s management, S&P Dow Jones Indices has launched a global suite of fixed income indices, which includes a focus on transparency for municipal, corporate, and high - yield bonds, senior loans, and sovereign debt.
Right now we're still working on getting out of debt, which will yield a higher return than investing, but soon we'll need to consider our options to let our money grow passively.
My previous picks include CQS New City High Yield, which holds bonds, shares and preference shares; Gravis Clean Energy, which invests in renewables; infrastructure - debt fund Sequoia Economic Infrastructure; medical - facilities fund MedicX; and HICL, which backs public - sector infrastructure.
Still, we've observed diminishing returns from the Fed's interventions, there is no political tolerance for the Fed to intervene in securities involving any credit risk that would be borne by U.S. citizens (purchasing European sovereign debt, for example), and the yield on the 10 - year Treasury bond is already down to 1.7 %, which is far below where it stood when prior interventions were initiated.
Schwab Intelligent Portfolios excelled largely because of its fixed income allocation, which included high - yield bonds and international debt, according to the Robo Report.
At the end of November, the index is trading at a yield of 6.8 % compared to developed market debt, proxied by the Barclays Capital Global Aggregate Bond Index, which is offering a scant 1.6 %, also as of the end of November.
An inverted yield curve is an interest rate environment in which long - term debt instruments have a lower yield than short - term debt instruments of the same credit quality.
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.
We can see this dynamic at play in the figure below, which looks at the correlation between the amount of money flowing into risky assets (emerging markets, high yield debt) and the balance sheets of the four largest central banks.
High - yield bonds are represented by the Bloomberg Barclays US Corporate High Yield Index, which is an unmanaged, broad - based market - value - weighted index that tracks the total return performance of non-investment grade, fixed - rate, publicly placed, dollar - denominated and nonconvertible debt registered with the Securities and Exchange Commisyield bonds are represented by the Bloomberg Barclays US Corporate High Yield Index, which is an unmanaged, broad - based market - value - weighted index that tracks the total return performance of non-investment grade, fixed - rate, publicly placed, dollar - denominated and nonconvertible debt registered with the Securities and Exchange CommisYield Index, which is an unmanaged, broad - based market - value - weighted index that tracks the total return performance of non-investment grade, fixed - rate, publicly placed, dollar - denominated and nonconvertible debt registered with the Securities and Exchange Commission.
After all, the public frequently issues bonds to fund transportation and energy infrastructure which may yield substantial benefits that make the debt worthwhile.
An inverted yield curve is the interest rate environment in which long - term debt instruments have a lower yield than short - term...
High - yield isn't doing badly, but emerging markets debt is taking off — note $ EMB which has recently broken its 200 - day moving average.
Many borrowers today are seeking to avoid yield maintenance, which require the borrower to compensate for the yield lost by the debt holder should the loan be paid before maturity.
Dividend Yield > 4 % Average Volume > 50k, to filter out illiquid companies PEG ratio < 1, which can be used as a «growth at a reasonable price» indication Forward PE > 0, to make sure the company is projected to be profitable going forward Debt / Equity <.4, to make sure the company's balance sheet is relatively healthy on a debt basis Price > 200 Day SMA, to make sure the company is in a positive trend (something I've written about numerous tiDebt / Equity <.4, to make sure the company's balance sheet is relatively healthy on a debt basis Price > 200 Day SMA, to make sure the company is in a positive trend (something I've written about numerous tidebt basis Price > 200 Day SMA, to make sure the company is in a positive trend (something I've written about numerous times)
GLAD's yield is 7.45 %, however, dividends for a closed - end investment company can be very volatile / inconsistent and much of their return is dependent on the overall health of the economy and the debt or equity of the businesses in which they invest.
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