Sentences with phrase «yield investors buy»

Personally, I find it amazing that high yield investors buy instruments that may not pay interest in cash, given the dismal credit experience of such structures.

Not exact matches

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.

While these companies are unsurprisingly out of favour with many investors — a lot simply won't buy these companies on moral grounds — they think the sector's high yields, low correlation with market cycles and steady earnings will make investors give them another look, and then stock prices will appreciate.

Yields are going to rise, says James Morrow, manager of Fidelity Investments» U.S. Dividend Fund, and income - seeking investors should buy in before the masses rush into these stocks.

So the decision to buy one stock or another comes down to comparing valuations and whether an investor is looking for yield.

With rates at near zero in the United States, and negative in Japan and Europe, the differential is a powerful lure for carry trades, in which investors borrow at ultra-low rates in currencies such as yen or sterling and buy high - yielding assets such as the kiwi.

The 10 - year U.S. Treasury yield hurdled 3 percent last week and remains close to that level, encouraging investors to buy the dollar.

Resnick said that «pension funds are conservative investors and the things they buy aren't kicking off yield» that would justify higher investment targets than the ones they are setting now.

Certainly, it offers an attractive level for longer - term investors such as pension and insurance funds to lock in a relatively decent yield, and will tempt some portfolio managers to buy bonds rather than equities.

Rates for home loans eased up slightly as investors bought more bonds, sending yields down a few basis points.

I will publish the entire list in a future column, and will begin tracking its progress (or lack thereof) in order to determine if the concept of buying dividend growers can bear fruit as the Fed raises rates, and investors have other, seemingly safer choices for yield.

The 10 - year yield retreated below 3 percent on buying from investors attracted to those yield levels.

Off course, there has been the rise in TIPS» break - even inflation rates (BEIR being the difference between the yield on a 10 - year note and its inflation - protected variety) and evidence of TIPs buying from the likes of retail investors, as evidenced by EPFR's flow insights.

In fact, investors seeking safety bought even more of the downgraded U.S. debt, pushing prices on 10 - year U.S. Treasuries to within a fraction of face value and yields to an all - time low of 2.13 %.

By creating that delusion, investors become prone to «carry trade» speculation — buying any risky security that offers a yield better than zero.

Investors often buy those stocks when bond yields are falling.

From 2012 to 2014, investors bought $ 7.0 billion of ETFs that held MLPs for the higher yields.

Reining In Rates O'Neil, one of the managers of the $ 26 billion Fidelity Total Bond Fund, said rising bond yields could be reined in by at least three forces: Federal Reserve Chair Janet Yellen's commitment to a very gradual program of rate hikes, the traditional aversion to budget deficits by the Republican - controlled Congress, and buying by overseas investors who may use the recent jump in rates to snap up more Treasuries.

Along with falling yields, investors who want to buy income - producing stocks these days are facing rich valuations.

With the Fed no longer buying bonds and investors expecting greater inflation, analysts say higher yields could make bonds more attractive than stocks.

This very low market volatility can lead investors to take on more risk, and in a period of still relatively low interest rates, to «reach for yield» — that is, buy riskier assets than one would otherwise, in order to achieve a desired profit or savings goal.

Yet the currency is likely to remain weak as zero - anchored Japanese 10 - year bond yields encourage local investors to buy higher - yielding foreign bonds.

That's made some investors think twice about whether Vanguard High Dividend Yield is really a good buy right now.

When investors buy stocks, they get a higher yield than in banks or Treasury bonds, and they essentially get the company for free!

Buying high yielding and selling low yielding stocks has been an attractive strategy since 2000 However, it has been a highly unattractive strategy over the last century Investors should resist the Siren call of high yielding stocks and focus on other factors INTRODUCTION The search for yield has

In the meantime, value investors can buy on the cheap and collect an over 4 % yield why they wait for better days.

High yield (HY) spreads — the difference between the yield of a high yield bond and a Treasury note of similar duration — are down 2 percentage points from their February peak, as investors buy high yield bonds.

This is a clear sign that while Treasury yields may raise, and volatility spike, the demand for USD credit remains very high and as soon as there are signs of weakness, investors buy the dip.

Former Fed Governor Stein highlighted that Federal Reserve's monetary policy transmission mechanism works through the «recruitment channel,» in such way that investors are «enlisted» to achieve central bank objectives by taking higher credit risks, or to rebalance portfolio by buying longer - term bonds (thus taking on higher duration risk) to seek higher yield when faced with diminished returns from safe assets.

The market grew rapidly and investors rushed to buy these high yielding instruments, in the end indiscriminately.

Central banks initiating «short volatility positions» via QE have dampened long - term sovereign bond yields, which crowded out private capital and induced investors to «find something else to do» by buying more esoteric assets

Given term premium suppression (via QE) reduced volatility and induced investors to buy risky assets to boost returns, a sustained rise in long - term interest rates would give investors more options to achieve yield targets, thus making risk assets appear less attractive and ultimately erode demands for yield and tighten financial conditions.

* Example of bond yield fluctuation: Say a company issued a $ 1,000 bond paying 5 % interest and an investor buys one.

He dominated Aetna's second - quarter conference call this week, discussing commercial fees, fee yields, pharmacy rates and many other details important to investor analysts who must recommend to clients whether to buy, sell or hold Aetna stock.

To me it looks like that in the short term and in the current yield starved environment, investors seem to prefer the dividend yield compared to the ecoenomically better share buy backs which I find very interesting.

Of course, seeing these major declines should whet anyone's long term buy outlook and being a dividend centric investor I'm excited to be buying into some great stocks that are sporting yields close to or well above 4 %.

This is not unlike the dilemma facing many retirees and other individual investors: holding ultra-safe interest - bearing investments is wise past a certain age; yet when yields are lower than the inflation rate, this strategy erodes buying power and undermines long - term financial security.

Generally, investors will sell off a low - yielding currency in order to buy a higher - yielding currency.

Though these days it can be tough to be a Canadian investor buying U.S. stocks, value and great yield still exist.

Investors demanded the most extra yield in almost a month to buy junk debt, according to a Bloomberg Barclays index fixed late Wednesday.

As a dividend investor this is what you have been waiting for, the opportunity to buy stocks with better yield at lower cost!

However, Graham's advice for bonds is extremely relevant today, he warns that when bond market yields are low, investors often look to steal an extra 1 - 2 % in yield buy purchasing low grade bonds.

The Yield To Maturity calculates the yield AS IF it was paying a coupon and an investor buys at the original issue discount (OID) and holds to matuYield To Maturity calculates the yield AS IF it was paying a coupon and an investor buys at the original issue discount (OID) and holds to matuyield AS IF it was paying a coupon and an investor buys at the original issue discount (OID) and holds to maturity.

So why would an investor focused on dividend income buy a stock that yields around 1 %?

Once an investor has determined the YTM of a bond he or she is considering buying, the investor can compare the YTM with the required yield to determine if the bond is a good buy.

«Any sort of backup in yields sees that kind of buying, highlighting that investor demand for return on ample savings is big,» said Aaron Kohli, a strategist at BMO Capital Markets.

I have already discussed in one of my article that how important it is for investors to buy stocks which are trading at high earning yields and has high return on capital (ROC).

The compression of interest rates across the developed world to virtually zero has wiped out the so - called «carry trade», where investors borrow a low - yielding currency and sell it to buy a higher - yielding one.

How do you argue that Treasuries, 10 Year Notes and longer, are about to undergo a secular decline in price and then go on to say that investors will be buying them in troves with the yield at only 3 %?

To what extent do you view your investing life as an extension of your personal life?By that I mean to what extent do the personal morals and ethical values of Tim the man govern the investing decisions of Tim the dividend growth investor?If you ask your typical dividend growth investor if they would be willing to invest in a lucrative but immoral venture, say selling child pornography or crack cocaine, the answer would probably be «absolutely not» regardless of the yield, valuation or growth prospects of the underlying venture.And yet, ask that same investor what their thoughts are about Phillip Morris and they would probably describe what a wonderful investment it is and go on about why you should own it.Do your personal morals ever come into play when buying companies, or do you compartmentalize your conscience, wall it off from the part of your brain that thinks about investments, and make your investing decisions based on the financial prospects of the company?The reason why I'm asking is that I keep identifying stocks of companies that I love from an investing perspective but despise on a human level.I can not in good conscience own any piece of Phillip Morris knowing the impact that smoking related illness has on the families of smokers.You might say that the smoker made his choice to smoke so you don't mind taking his money, but his children never made that choice and they are the ones who will suffer when he dies 20 years too soon.