Sentences with phrase «yield investors believed»

In late October, the «spread» in interest rates between high - yield bonds and Treasury bonds neared the lowest level in a decade, meaning that investors were getting less of a premium for assuming higher risk.2 A November survey found that 60 % of high - yield investors believed the bonds were overvalued.3

Not exact matches

We've identified eight burgeoning sectors that analysts, investors, and other experts believe are poised to yield huge returns.

«We're not there at that point in the economic cycle so we believe high yield at this point does have a place in investors» portfolios that are diversified.»

As discussed below, the Department believes the approach adopted in this final rule likely yields the most desirable outcomes including avoidance of costly market disruptions, more compliance cost savings than other alternatives, and reduced investor losses.

With U.S. economic readings coming out on the soft side and many investors believing the Fed to be in no rush to raise rates, U.S. yields have pulled back in recent weeks.

He also believes higher - yielding emerging - market bonds are attractive to institutional investors, given very low bond yields in developed markets.

While much of the outflows so far have been a result of investors switching out of high yield into safer money - market and government bond funds, Gutteridge believes we have seen the bulk of the selling.

Yet we believe another milestone is of far greater significance to investors: Yields on short - term U.S. investment grade (IG) corporate bonds also hit 3 % — an eight - year high.

Investors seem to believe that those yields are relatively safe, unlike yields from oil and gas partnerships, some of which are in the stratosphere due to the plunge in share prices.

Finally, although volatility may increase over the short term, as we look ahead we believe investors with a long - term horizon may ultimately benefit from the new challenges facing high - yield investors.

Indeed, because all of this yield seeking has driven a persistent uptrend in speculative assets in recent years, investors seem to believe that «QE just makes prices go up» in a way that ensures a permanent future of diagonally escalating prices.

Long - term yields and the sterling have been climbing recently, moving in the opposite direction the BoE had hoped and raising questions about whether investors believe the bank will change its mind and hike rates sooner than it promised.

Investors» willingness to believe that eurozone bond yields are a a single - way bet has been located out in the way that new paradigm pondering about markets always is, eventually.

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.

But by overweighting highly cyclical companies with the global yield curve already so flat, investors must believe that the yield curve has lost all of its ability to signal slower growth ahead.

And if you look at a common gauge of future inflation expectations — the difference between the yield on long - term Treasury bonds and that of Treasury Inflation - Protected Securities, now about 1.8 to two percentage points — investors apparently believe inflation will continue to mosey along at a relatively sluggish rate well into the future.

On Tuesday, in response to evidence of accelerating yield pressures, as well the recognition that QE2 was much further along than investors widely seem to believe, we substantially cut our bond duration to about 1.5 years in Strategic Total Return.

Naturally, she believes ETFs that hold high - yield corporate bonds, emerging market sovereign debt or dividend - paying stocks are all better choices for long - term investors.

In fact, when looking at the earnings yield relative to real bond yields — the equity risk premium (ERP)-- investors are still being well compensated for risk in many corners, we believe.

Investors seek more risk in equities as bond yields get low... And higher equity valuations make bond investors believe it's just as safe as it was before when both debt and equity valuations were lower (and objectively lesInvestors seek more risk in equities as bond yields get low... And higher equity valuations make bond investors believe it's just as safe as it was before when both debt and equity valuations were lower (and objectively lesinvestors believe it's just as safe as it was before when both debt and equity valuations were lower (and objectively less risky).

I believe any investor at one time, at least in the beginning, is guilty of «chasing HIGH yield» until they understand quality is paramount.

Market indicators suggest that investors believe the relative risk of insuring the underlying credits in nearly every sector has dropped, or that these underlying credits are willing to take on more risk at a lower yield.

Yet we believe another milestone is of far greater significance to investors: Yields on short - term U.S. investment grade (IG) corporate bonds also hit 3 % — an eight - year high.

Given the rising interest rate environment as a result of stronger economic growth, they believe that, in the current market, positioning the fund along the intermediate portion of the yield curve provides investors less interest rate sensitivity than longer duration portfolios.

Park Street Partners believes that Mobile Home Park investments offer investors some of the most attractive risk - adjusted cash yields available in the current real estate market.

Because they are compared some investors are led to believe that the equity owners» expected return can be estimated as the sum of the earnings yield plus earnings growth.

On the other hand, dividend investors raise strong points: — less fees: even though ETF fees are much smaller than mutual funds, they do charge more than holding those stocks directly — more control: being able to select your type of portfolio, holding stocks that you believe in and going for the stocks that you know and targeting the yield that matches you — more fun?

The LIBOR is frequently the basis of investments including interest swap agreements (two parties agree to pay each other's interest based on an imaginary amount of money, or principal), bonds with a variable interest yield, and forward contracts (investors use these to hedge risk based on what they believe interest rates will be at a specific time in the future).

I believe that a careful investor can easily get a combination of 3 % to 4 % initial dividend yield and 5 % per year NOMINAL dividend growth.

The fact that the Federal Reserve is raising its overnight lending rate and seeing little reaction from the yields of intermediate and longer - term bonds is an indication that bond investors do not believe in the strength of the economic outlook going forward.

If investors believe the economy will do better in the next decade, they will require a higher yield on their medium - to long - term investments.

«For investors who believe that high yield bonds are ripe for a pullback, SJB can be used to help hedge against or to seek to benefit from potential declines.»

The reason why an inverted yield curve is predictive of economic weakness is that long - term bond investors will settle for lower yields if they start to believe the economy will slow or decline in the future.

We believe bond investors may have a hard time doing better than their current coupon yield over the next decade.

For those investors most interested in income, I believe that a 3 % or better yield represents a sweet spot in today's market.

In general, corporate credit remains solid and corporate earnings remain strong.7 The bull market is old, but many analysts believe it still has legs.8 The greatest danger of the high - yield sell - off may be psychological — the potential for investors to overreact to a small sign of market weakness.

a. Preamble — The individual investor has been reaching for yield, unwisely using past performance as a guide to future success, and therefore believing that bonds are the best investment for 2013.

This week famed value investor Jim Grant announced to a group of ETF insiders that he was short the bond market, making an explicit call that he believed that rates would rise faster than yields could reward investors.

As for her investments, Gray believes Sarah is doing fine as a DIY - investor, noting her buy and hold strategy is currently yielding above - average returns.

His research suggested that by selecting the 10 highest dividend - yielding DJIA stocks, he believed, that an investor could potentially outperform the overall market, as measured by the DJIA.

And that's why I don't believe in a naïve strategy of just buying high dividend yielding stocks and certainly don't recommend that investors do that on their own without all the homework that someone like yourself does.

«While the 10.4 % (second - quarter) dividend yield is tempting, we believe that is all Crown American investors may receive over the next 12 - 18 months,» states Salomon Smith Barney analyst Jonathan Litt in a written report on the company's earnings.

«These investors are not expecting a high yield, they just believe, especially the foreign investors, that the U.S. office market is very stable.

Owning high - yielding property in the UK is much more affordable than you think, not quite the high net worth investor playground many believe it to be.

They believe the actual reason for investors» increased attraction is that REITs» can offer both growth and yield, which are both desirable benefits in the current investing environment.

We believe that achieving high yields for our investor clients starts with identifying and acquiring single - family and multi-family homes located in prime locations throughout the Milwaukee market.