In a recent note to clients, Eric Sprott, the head of Sprott Asset Management, raised questions on «how well the financial system can cope in a relentless low - to - no -
yield environment for bonds.»
High - dividend - yielding stocks also are appealing in the low -
yield environment for money market funds, CDs, etc..
It doesn't mean that we won't experience inflation or higher bond yields at times, but we're likely to live in a low -
yield environment for a very long while.
It's a low -
yielding environment for capital almost everywhere.
Not exact matches
«Animals that are raised in
environments with reduced confinement and stress
yield a better raw material
for us to work with,» he says.
Trump's plans to increase fiscal spending has boosted bond
yields — a change that would support higher revenue
for banks currently languishing in a low - interest rate
environment.
«In the current
environment, although inflation appears to be increasing, it's still not likely to cause 10 - year
yields to rise to levels that would be problematic
for equities.
While it is better to buy a low - P / E company over a high one, in today's low - return
environment paying a little more
for a high -
yielding investment can make sense.
The
environment of continuing monetary accommodation — necessary to support activity and boost inflation — may lead to a continued search
for yield where there is too much money chasing too few
yielding assets, pushing investors beyond their traditional habitats.
It's not easy
for income - seeking investors to find attractive
yield in today's slow growth economic
environment.
Also, here's a good one on the potential
for lower bond returns using a historical period
for the lower
yield environment you talked about:
Russ Koesterich discusses where to look
for yield in today's «low -
for - long» interest rate
environment.
Baby boomers seem more likely to have fallen prey to these behavioral factors than other generations, driven in part by their desire
for an enhanced retirement income stream in the historically low
yield environment.
But in one key area investors face a familiar dilemma, which they've endured
for the last nine years: finding income in a still low
yield environment without taking on too much risk.
Typically, a higher - rate
environment will increase spreads
for banks / insurers, but you're absolutely right that the 10 - year
yield could stay flat, especially when the
yields for government bonds of other countries are so low.
In the meantime, the sluggish global
environment is impacting markets and has several implications
for portfolios, as I write in my new weekly commentary, «
Yield: One Commodity That's Still Hot.»
We have viewed a 10 - year Treasury
yield range of 3.50 - 4.00 % as a more challenging level
for equity headwinds than a market
environment with 3.00 % 10 - year Treasury
yields.
While these observations suggest that liquidity conditions may have deteriorated relative to those in 2005 - 06, most observers agree that bid - ask spreads at the time had been unduly narrow owing to market participants» search
for yield in the run - up to the crisis (BIS (2005)-RRB-- an
environment bearing some similarities with current conditions (BIS (2014)-RRB-.
Fundamentals drive a sector like high -
yield, and we see a positive
environment for high -
yield with valuations fairly valued to even slightly cheap.
However, they remain close to the low level prevailing before the Asian crisis, reflecting the generally benign
environment for most emerging markets as well as investor appetite
for higher
yields than currently prevail in industrial countries.
Moreover, bond
yields didn't remain on their upward trajectory making it particularly difficult
for financials to perform in this kind of
environment.
Part of the reason why elevated valuation multiples have not
yielded to gravity may be that they are inadequate metrics
for today's
environment.
This low interest rate
environment and the growing pool of institutional funds have encouraged investors to search
for investment options that offer a higher
yield.
-- Income more difficult to provide clients, in a zero rate
environment many will suggest high
yield corporate bonds and leveraged loans to supplement traditional fixed income but many clients are not willing to sacrifice quality
for a higher
yield.
While reaching
for yield has been successful in the past, we suggest increasing credit quality, increasing liquidity and reducing risk in an
environment where the Fed's policy changes introduce a very different forward - looking outlook.
These should signal rising
yields — but history may not be a great guide
for us in this
environment.
The «search
for yield» and the general underpricing of risk that was prevalent up until last August provided an
environment which facilitated the rapid growth of sub-prime lending.
As many fixed income investors have discovered in the low interest rate
environment of the past several years, opportunities to achieve better levels of income exist, but thoughtful consideration of the potentially higher risks associated with the hunt
for better
yield is essential.
I do think there is merit in looking at general rates (we likely won't return to the rate
environment of the early 1980's
for example), but I wouldn't be getting excited about stock prices at these levels
for the sole reason that bond
yields are really low.
As of last week, tax - exempt government bonds hit a four year high, with many investors believing that the recent tax reform and an expected rising interest
environment will push bond pricing even higher, offering a very attractive economic option
for yield starved investors — many of which in recent years have had to increase risk capital allocations to generate reasonable outcomes.
First, you need to account
for relocation to the
environments in which they speciated to
yield the present day # s (including those getting to far away places in the absence of particular dietary needs).
We use new approaches
for increasing
yield potential, such as marker - assisted breeding to develop the next generation of rice varieties suited
for irrigated
environments in Asia.
Further promoted advantages and promises by the industry include that RR crops create more
yield than conventional crops, decrease farmers input costs by reducing the amount of herbicides sprayed and are safe
for humans, animals and the
environment.
Detailed inputs including materials, labour and growth conditions, fruit
yields, incidence of weeds and pests were recorded
for both systems so as to compare the economic viability, energy flow and soil
environments of the two systems.
I was thrilled that years of hard work by food advocates around the country, maybe even including my own small efforts here on The Lunch Tray, had finally
yielded strong federal competitive food rules to create a healthier school
environment for my child and his fellow students.
As
for changing schools, we have found that sometimes a new
environment can
yield a different response since there is no history of not talking there.
In their study, which has been published in Science of the Total
Environment (2015), scientists from the Technical University Munich (TUM) evaluated the crop
yield statistics
for EU countries compiled by the Food and Agriculture Organization of the United Nations (FAO) since the 1960s.
In 2004, Paul Epstein of Harvard Medical School's Centre
for Health and the Global
Environment, and James McCarthy of Harvard University, claimed: «We are already observing signs of instability within the climate system -LSB-...] there is no assurance that the rate of greenhouse gas build up will not force the system to oscillate erratically and
yield significant and punishing surprises.»
Williams says a number of crops have been studied
for yield stability, a cultivar's ability to produce consistent
yields across inconsistent
environments.
Professor Martin A. J. Parry of the Lancaster
Environment Centre (LEC) said: «Improving the efficiency of photosynthesis — the way crops turn carbon dioxide in our atmosphere into everything we can eat — may seem ambitious but
for us it offers the best opportunity
for producing the scale of change in crop
yield that we need to feed a growing global population in a changing world climate.»
By intensively breeding
for high
yield, say, in Wisconsin, those plants might lose the flexibility to respond to
environments that are very different from Wisconsin growing conditions.
The timing of the switch to flowering is critical
for a plant's adaptation to the
environment and its resulting
yield.
Their review of hundreds of published studies provides evidence that organic farming can produce sufficient
yields, be profitable
for farmers, protect and improve the
environment and be safer
for farm workers.
Technology such as high -
yielding wheat varieties that tolerate drought and high temperatures, as well as resisting new or modified strains of deadly crop diseases spawned in rapidly warming
environments, are the outputs from WHEAT research that lead to positive outcomes
for farmers and consumers.
According to one recent study, «These changes in stress tolerance are likely the by - product of plant breeders selecting
for yield at high plant populations and over a wide range of growing
environments.»
This may not have been the best
environment for Picasso, but it'll
yield much better results than trying to paint a portrait with a power drill and a lawnmower.
At this initial stage, the research hasn't produced data to suggest which settings
yield higher - quality experiences, but the early findings highlight the importance of understanding what makes
for a stimulating learning
environment in the informal, home - based settings where younger children spend more of their time.
When we support all teachers to improve their practice... we are creating outstanding learning
environments for students that
yield success.
In order
for professional development to work, leaders must address high -
yield instructional strategies aligned to the specific needs of their staff in a positive, supportive and collaborative
environment.
As long as nuclear engineering can strive
for new innovations and learn from its history of accidents and mistakes, the benefits that nuclear power can
yield for our economy, society, and yes,
environment, will come.