To some extent, the low
yield environment of recent years probably contributed to some laziness on the part of investors.
Not exact matches
«And in this low - rate and low - growth
environment, you're getting a company with sizable
yield and incremental growth on top
of it.»
Southwest said on Wednesday that «while current trends suggest a stabilization
of close - in fares, the overall revenue
yield environment remains soft.»
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.
An
environment of rising rates impacts the relative attractiveness
of holding assets like gold because the metal provides no
yield.
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.
A flattening
yield curve is often a feature
of a rising rate
environment and can spur worries about an economic slowdown.
Instead
of yield at any price, investors wanted companies and assets that would do better in an
environment of stable or rising growth.
We assess the value
of dividends in various interest rate
environments over an 88 - year period and discuss how to avoid typical «
yield traps» in the design
of high - dividend strategies.
I've long noted that the analysis
of market action can help to overcome some
of this frustration, as stocks have often provided good returns despite rich valuations so long as market internals were strong, and the
environment was not yet characterized by a syndrome
of overvalued, overbought, overbullish, and rising
yield conditions.
But cash isn't such a bad thing in a rising rate
environment as the
yield pick up rather quickly on money market accounts or you can roll some
of that over into higher
yielding short - term bonds.
In this
environment, generating ample income will require more than a single asset type as well as a careful balance
of yield and 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.
Yet even many
of these stocks could generate positive returns in a gradually rising
yield environment.
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.
A flattening
yield curve is often a feature
of a rising rate
environment.
In rising rate
environments, credit spreads tend to move in the opposite direction to interest rates and can potentially generate income to help offset some
of the impact
of rising U.S. Treasury
yields.
Moreover, bond
yields didn't remain on their upward trajectory making it particularly difficult for financials to perform in this kind
of environment.
The bottom line: In an
environment of generally decent (albeit recently disappointing) growth and gently rising
yields, high
yield offers attractive potential in a
yield - starved world.
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.
The current low interest rate
environment globally has pushed the majority
of fixed income securities to record - low
yield levels across the board.
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.
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.
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.
platform and outsourced support services to
yield the efficiencies
of a large - scale
environment, enabling clients to reduce overall servicing costs, increase productivity and better manage their commercial mortgage assets.
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.
Though the US
yield curve remained some way from inversion — which historically is often cited as signaling an impending recession — investors were relatively sanguine about the significance
of its flattening, with many arguing that low long - term
yields were more reflective
of central - bank policies and the weak inflationary
environment than dimmer economic prospects.
Still, the continued benign monetary
environment and low bond
yields should mitigate the size
of any correction, and the systematic impact will likely be limited.
This obviously is quite straight forward as investors
yield chase in an
environment where interest rates are at the lowest
of the low.
On that occasion Australian bond
yields rose significantly more than those in the US, reflecting market concerns that Australia would not be able to maintain control over inflation in an
environment of strong global expansion.
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.
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.
The perception
of a potentially inflationary global
environment, combined with current interest rate policies, is
yielding a strong financial interest in oil.
Bond values fall in a rising interest rate
environment because investors sell bonds in favor
of higher interest
yielding bonds.
And naturally, when Thomism was applied to the ever changing, indeed metastasizing, social and political realm
of the twentieth century, it
yielded new and varied responses» but the variable was the
environment, while Thomism remained the constant.
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).
The celebration
of diverse perspectives that was supposed to
yield a secure
environment of inclusion, mutual respect, and happy diversity has instead given rise to an anxious, politically obsessed
environment in which civility is predicated on intellectual conformity.
The ideal algal strain flourishes in the simplest
of production
environments at the lowest possible cost without a necessary dependence on fossil fuels to maintain high
yields — an affordable approach that can be practiced most anywhere.
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.
Sharebroker Charlie Aitken is taking a more upbeat view on the major Australian banks, saying the sector's high dividends makes it a good bet in an
environment of record low
yields.
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.
We discuss future opportunities to improve wheat
yields in variable rainfed
environments in the light
of climate change.
With the worldwide growth
of processed food and beverages markets, the demands
of our customers regarding the quality and variety
of products are becoming increasingly stringent: lean, flowing processes, higher
yield of the input raw materials coupled with efficient use
of energy,
environment and resources.
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.
Apart from the adoption
of high -
yielding, uniform cultivars, a further possible threat to genetic diversity, and biodiversity in general, are the side - effects
of the release
of genetically engineered organisms into the
environment.
Although the specific adaptation approach confers
yield and production risk advantages at industry scale, even greater benefits should be achievable with better predictors
of environment - type likelihood than that conferred by location alone.
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.