Not exact matches
It is not as if Ontario is having problem finding takers for its
debt and
yields on the province's bonds are competitive
with other provinces.
Although there may not be a bond bubble,
with investors starved for
yield, Gundlach predicts a potential bubble could form in credit risk as investors increase their leverage on riskier
debt securities like junk bonds and emerging market
debt.
Bond investors like mutual funds and pension funds hope to buy securities
with comparatively higher
yields than other asset - backed
debt that could also provide diversification benefits.
If mortgage interest rates were higher, paying down this
debt would make more sense, but
with rates at about 4 percent, investing that money could
yield a higher rate of return.
PeerStreet's view is that by performing its own due diligence on borrowers using a software - based underwriting engine, the company can match high - quality
debt with a growing crop of
yield - hungry investors.
The stocks that hedge funds have largely ignored tend to be much larger than the hotels, have less
debt, grow earnings more slowly but consistently, and pay bigger dividends (an average
yield of nearly 3 % for the S&P 500 constituents, compared
with 2 % for the index overall).
«Perversely, we've spent the last 20 years paying a premium for [the stocks of companies
with] high
yield debt,» she said.
Government
debt yields fell to multimonth lows,
with the 10 - year
yield slumping below 2.1 percent as stocks declined on global economic worries.
U.S. government
debt yields continued their upward climb Wednesday,
with the rate on the 10 - year Treasury note edging above the 3 percent benchmark it hit Tuesday for the first time since 2014.
Watsa, in subsequent interviews, denied he couldn't find partners, saying Fairfax decided it wasn't wise to saddle BlackBerry
with high -
yield debt after completing due diligence.
debt obligations of the U.S. government that are issued at various intervals and
with various maturities; revenue from these bonds is used to raise capital and / or refund outstanding
debt; since Treasury securities are backed by the full faith and credit of the U.S. government, they are generally considered to be free from credit risk and thus typically carry lower
yields than other securities; the interest paid by Treasuries is exempt from state and local tax, but is subject to federal taxes and may be subject to the federal Alternative Minimum Tax (AMT); U.S. Treasury securities include Treasury bills, Treasury notes, Treasury bonds, zero - coupon bonds, Treasury Inflation Protected Securities (TIPS), and Treasury Auctions
Howard Buffett, who runs a foundation
with money from his billionaire father Warren Buffett, said high -
yield debt is an inspiration for the right approach to philanthropy.
But even as the market adjusts to the next level of
yields, there will be more government
debt for the Treasury market to deal
with.
As the news service noted, «five - year notes of Spain,
with $ 935 billion of
debt and an 8.5 % deficit,
yield 5.5 %.
Although the bond market is also volatile, lower - quality
debt securities, including leveraged loans, generally offer higher
yields compared
with investment - grade securities, but also involve greater risk of default or price changes.
Our Global Market Strategies segment, established in 1999
with our first high
yield fund, advises a group of 46 active funds that pursue investment opportunities across various types of credit, equities and alternative instruments, including bank loans, high
yield debt, structured credit products, distressed
debt, corporate mezzanine, energy mezzanine opportunities and long / short high - grade and high -
yield credit instruments, emerging markets equities, and (
with regards to certain macroeconomic strategies) currencies, commodities and interest rate products and their derivatives.
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.
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
The
yields are generally double - digit; as a retail investor, I'd love to invest in clever
debt structuring products that can return 10 percent a year
with little volatility.
According to Bloomberg data, EM
debt is offering
yields of above 4 %, and despite a strong year - to - date performance (more than 13 %), we see potential for significant income
with lowered spread risk, given the diminished expectations of a near - term Fed move.
If you're looking to invest in short - term
debt with generous
yields (the
yields posted
with each deal are net the 1 % — 2 % fee), then PoL may be right for you.
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.
You can invest in higher
yielding properties at much lower valuations for $ 5,000 — $ 10,000 minimums versus coming up
with a $ 200,000 + downpayment and taking on $ 1,000,000 in mortgage
debt for the median SF or NYC home price.
What this means in practice is that we have kept maturities of our investments very short, particularly for low - risk issuers such as governments and agencies, while we seek out opportunities to increase portfolio
yield with what we think is well - priced corporate
debt.
December was another solid month for European high -
yield debt,
with Barclays's benchmark cash index tightening by 40 basis points, ending the year at a new post-crisis low.
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.
Just last month the company spent $ 160 million for more acreage in the Permian, financing the purchase
with $ 125 million of high -
yield debt and borrowings under its credit facility.
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.
Valentum's investment policy favours companies
with low -
debt levels, high FCF
yields and high quality management teams.
The continuing low level of government bond
yields has supported the search for
yield that has been evident over the past couple of years,
with the spread between
yields on US government
debt and
yields on both corporate and emerging market
debt remaining around historical lows over the past three months (Box B).
With interest rates on low - risk investments falling to low levels in many countries, investors have sought to maintain
yields by moving into higher - risk assets such as corporate
debt and emerging market
debt.
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.
This means that Governments around the world will be competing
with their own Central Banks to sell
debt, and the result could be much higher bond
yields going forward.
The new issue
yields 4.65 % versus some recently issued corporate
debt with a 3.1 %
yield.
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.
Leveraging our leading institutional distribution platform, our goal is to provide our clients
with solutions across all banking products, including initial public offerings, follow - on offerings, wall - crossed offerings, bought deals, private placements, ATMs, convertible offerings, leveraged loans, investment grade and high -
yield debt offerings and all forms of advisory services.
Edelman says that many investors have piled into long - term bonds and high
yield debt because they come
with higher
yields.
This was called the «conundrum 2.0 ″ as it referred to an earlier period (2004) where Fed tightening was met
with huge global demand for Treasury
debt that led to smaller increases in longer maturity
yields than expected.
With corporate
debt markets priced for another Great Depression, High
Yield Bonds are in a unique position to outperform equities given recent runups off the lows while providing a high yield income stream for years to
Yield Bonds are in a unique position to outperform equities given recent runups off the lows while providing a high
yield income stream for years to
yield income stream for years to come.
Floating rate bank loans are loans issued by below investment grade companies for short term funding purposes
with higher
yield than short - term
debt and involve risk.
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.
On the subject of junk
debt, in the first two quarters of 2014, European high
yield bond issuance outstripped U.S. issuance for the first time in history,
with 77 % of the total represented by Greece, Ireland, Italy, Portugal, and Spain.
A diversified bond fund that invests at least 70 % of its assets in investment - grade
debt with tactical investments in high -
yield and non-U.S. dollar bonds.
Fox Business: — Be careful
with high -
yield debt.
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.
So you have $ WFC - L preferreds, rated BBB, offering a
yield of 6.15 %, and then you have $ KSU - preferreds,
with no rating, issued by a company whose senior
debt is rated BBB -, offering a
yield of 3.45 %, 260 bps lower — in the same market, on the same exchange.
A couple of small examples would be Greiffenberger, a German auto parts maker that trades at a 9 % FCF
yield and has a massive
debt load, and Ambra, a Polish wine importer
with a much smaller
debt load, but also trading at a 9 % FCF
yield.
They understandably wanted
yields higher than the Treasury was paying, as the Fed was flooding the economy
with credit to keep asset prices afloat to save the banks from having to take loan write - downs and admit that
debt creation was not really the same thing as Alan Greenspan euphemized in calling it «wealth creation.»
European
yields have generally taken their lead from developments in the US over recent months,
with yields on German 10 - year government
debt also falling toward 4 per cent in mid January, before increasing to 4.2 per cent after the Fed's late January monetary policy announcement.
Just as well, since more than a quarter of JPMorgan's Global Government Bond Index, or $ 6.4 trillion worth of
debt, was trading
with a negative
yield last week.