Those investors usually increase their bond holdings to reduce risk in their portfolios, but doing so in the current low -
yield environment means risking not having enough income in retirement along with reduced prospects for capital appreciation.
Not exact matches
Valuations on high -
yielding stocks may have become overstretched in the historically low -
yield environment, potentially making them vulnerable if the markets experience a
mean reversion shift.
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.
This also
means that triple net lease REITs, which are often used by
yield - hungry investors in a low interest rate
environment as bond alternatives, can be thought of as very long - term duration bond proxies.
This
means less herbicides are needed and greater
yields can be produced benefitting the farmers, consumers and the
environment!
This
means the 52bp pick up in
yield that one gets today would result in a lower total return later, as bond prices would decrease in a rising interest rate
environment.
As we had seen following the BoJ announcement on September 24, the movement away from signaling ever increasing amounts of QE and negative interest rate policy (NIRP)
means a better
environment for bank stocks, as steeper
yield curves imply better margins and higher profits for banks.
In a weird
environment like this, it
means an earnings
yield that is more than 9 % over the long bond is a good purchase.
In today's low -
yield environment, investors with fixed income mandates can improve performance with strategies designed to pick up incremental returns from
mean reversion and that limit overexposure to both lower - quality creditors and large issuers.
I this
environment, it
means principal preservation is preferred to stretching for
yield.
When Treasury Bonds Perform Poorly An
environment in which interest rates are rising will decrease the price of a Treasury security, though that
means that their
yield will increase at the same time.
These tools provide the
means to sharpen assessment and management capacities required to: compare the result of several water allocations plans; improve soil - moisture control - practices under rainfed conditions; optimize irrigation scheduling; sustainably intensify crop production; close the
yield and water - productivity gaps; quantify the impact of climate variability and change on cropping systems; enhance strategies for increased water productivity and water savings; minimize the negative impact on the
environment caused by agriculture.