Sentences with phrase «yield market as»

Unlike Treasuries and investment grade corporates, the high yield market as measured by the S&P U.S. Issued High Yield Corporate Bond Index touch a low point for yield earlier in the month at a 5.87 % on October 6th.

Not exact matches

LONDON, April 30 - The 10 - year U.S. Treasury yield's rise above 3 percent last week for the first time in over four years may be cause for concern across wide swathes of financial markets, such as equities and emerging markets.

«If U.S. rates move too quickly, they will dislocate [high yielding] assets more broadly and the most liquid emerging markets will not be immune to a selloff,» he added, pointing to the 2013 taper tantrum as an illustration of this idea in action.

Higher U.S. yields can put pressure on the currencies of emerging market countries that run current account deficits such as Indonesia and India, said Satoshi Okagawa, senior global markets analyst for Sumitomo Mitsui Banking Corporation in Singapore.

For one thing, those 10 - year Canada bonds are yielding just 1.14 % and could lose value should interest rates rebound from their recent lows, as many market - watchers expect.

Markets around the globe have been keeping a close eye on the U.S. bond market as rising Treasury yields put investors on edge.

When we talk about bond market liquidity it's important to understand that there are lots of different «pools» out there such as high yield bonds, munis, government bonds, etc..

So, it is a very different market than it was 10 years ago, and you're going to see a lot of corporate bond issuance as these infrastructure projects go out there, and you can capture some pretty good yields and you know what you're buying because it's a corporate bond.

Stock markets were routed around the globe on Monday and bond yields rose as resurgent U.S. inflation raised the possibility central banks would tighten policy more aggressively than had been expected.

Also, as bond rates rise, some of the money that migrated over from the bond market in search of higher yields will return to the safety of fixed income.

The high - yield market has underperformed equities this year, often seen as a sign of trouble for stocks.

In the short - term, however, this increased leverage may actually be bullish for junk bonds, corporate bonds, emerging market debt and mortgage - backed securities as it brings higher prices and lower yields, he said.

Especially since the recent behavior of Japan's key financial market variables (stock indices, the yield curve and the yen's exchange rate) could be seen as a sign of support for reflationary policies.

This could potentially be a problem for Greece when trying to finance itself in the markets, as it could mean higher yields and repayments.

Although there may not be a bond bubble, with investors starved for yield, Gundlach predicts a potential bubble could form in credit risk as investors increase their leverage on riskier debt securities like junk bonds and emerging market debt.

Powell's comment was pointed to by bond market strategists as a reason for a sudden pop in bond yields.

Liew said that with the wide variations in credit quality across emerging markets, from non-investment grade countries such as Argentina and Venezuela, to single - A rated ones, such as Malaysia, GIC was looking for «idiosyncratic situations,» in emerging markets which were likely to converge with lower - yielding developed markets.

It's the total earnings - per - share the market generates as a percent of the market's total value — a measure similar to the yield on bonds, where the yield rises when bond prices fall, and vice versa.

As interest rates rise, the prices of existing bonds fall in order to make the yield of their fixed coupons competitive in the market.

In a sign of market interest, the longest portion of the offering, a 40 - year security may yield 1.45 percentage points above Treasuries, down from initial talk of 1.6 percentage points to 1.65 percentage points, said the person, who asked not to be identified as the deal is private.

«A bear market in bonds calls for more than a global cyclical upswing, as not all forces that dragged yields down over the past decades have suddenly vanished,» argued Peter van der Welle, a strategist at Robeco.

Exchange - traded funds that track high - yield bond indexes have been the beneficiaries of a cash surge in recent weeks as market participants figure the central bank probably won't raise rates in 2015, and it could be well into 2016 before anything happens.

During a webcast presenting his 2017 outlook, Gundlach, the founder of DoubleLine Capital, said certain «second - tier» managers were focusing on 2.6 % as an important level for the 10 - year Treasury yield — a threshold beyond which the bull market in bonds would end.

Meanwhile government bond yields, a reliable barometer of market fear, are falling to record low levels as investors engage in a panicked hunt for risk - free assets.

Also, Ablin added a large portion of the recent rally involved a rotation from bonds into stocks as low interest rates forced investors to seek yield in the stock market.

NEW YORK, Feb 5 - The dollar rose against a basket of currencies on Monday as the U.S. bond market selloff levelled off after the 10 - year yield hit a four - year peak on worries that the Federal Reserve might raise interest rates faster to counter signs of wage pressure.

NEW YORK, Nov 28 - The Federal Reserve faces the challenge of standing by as financial markets «correct» as the central bank trims its asset holdings, U.S. hedge fund manager David Tepper said on Tuesday, adding he was surprised the bond - yield curve was so flat.

«Shorter duration hedge fund assets have grown at a rapid pace even as market liquidity has deteriorated, particularly in the high yield and distressed debt markets.

However, the softness in economic data, particularly as it relates to inflation, coupled with market expectations that the first Fed rate hike won't happen until well into 2016 have inspired at least a momentary burst in high - yield confidence.

Although it is fair to say that the recent uptick in volatility has in part reduced earlier concerns about prolonged low volatility and associated reach - for - yield behavior, it has placed added focus on the resilience of liquidity, particularly in markets, such as the market for corporate bonds, that may be prone to gapping between liquidity demand and supply in stressed conditions.

Finally, look at metrics such as price - to - earnings, price - to - sales and dividend yields to see if markets are cheap or expensive.

While that might suggest the «smart money» is signaling a swift correction, don't necessarily buy it: Lipper research found that «following the most recent periods of four or more consecutive weeks of net outflows from the Lipper High Yield ETF segment, the market — as measured by the BofA Merrill Lynch U.S. High Yield Master II Index — performed relatively well in the calendar month that immediately followed.

Persistence will remain a key feature of markets going forward, as will the reach for yield, we believe.

They have also increased the cost of new fixed - rate mortgages as yields on the bond market have moved higher.

NEW YORK, March 5 - Treasuries yields rose on Monday afternoon as the U.S. stock market recovered and fears of a trade war eased after senior Republicans urged President Donald Trump to reconsider his threat to impose tariffs on imported steel and aluminum.

But the bank has taken more extreme measures, such as ramping up purchases to more than 40 percent of the market overall and saying it would control the yield curve by keeping the 10 - year government bond yield around 0 percent.

All told, the jump in Treasury yields has yet to make its way into the broader economy in the form of higher borrowing costs, yet it will likely start to dampen the housing and auto markets as consumer loans become more expensive, said Gary Cloud, a portfolio manager of the Hennessy Equity and Income Fund.

This high - yield, or junk, bond market has been getting a lot of attention lately as credit spreads have blown out.

While many analysts were predicting bond yields to rise this year as global economies improve, the suddenness of the move was a large factor in the recent stock market selloff.

LONDON, April 30 (Reuters)- The 10 - year U.S. Treasury yield's rise above 3 percent last week for the first time in over four years may be cause for concern across wide swathes of financial markets, such as equities and emerging markets.

As in developed markets, if the yield is too high, or if the payout ratio doesn't leave room for reinvestment, there is a risk the dividend could get cut.

Treasury yields resume a steady climb higher on Wednesday as fretting about the threat of an economically disruptive trade war between the U.S. and China subsided, and takes a back seat to the concerns about rising interest rates and coming labor - market data, which could inform the Federal Reserve's policy agenda.

Treasury prices rose on Monday, paring the earlier climb in yields, as a steep fall in the stock market sirs up haven - related buying in U.S. government paper

As the search for yield intensifies, vulnerabilities are shifting to the nonbank sector and market risks are rising.

yields will hit the highs on close end of the day... equity markets setting up to be slammed tomorrow maybe but today they have run over weak shorts in the face of rates... the federal reserve see's this and again will wonder if they are behind on hikes, strong data, major expansion in credit, lack of wage growth rising bond yields and ballooning debt... rates will go much higher and equities will have revelations as to what that means for valuations

In fact, credit spreads in many markets are trading at the lowest levels as a percentage of their overall yield in a decade (see chart below).

They could then reinvest that cash into higher yielding assets such as, say, emerging market debt.

the percentage of return an investor receives based on the amount invested or on the current market value of holdings; it is expressed as an annual percentage rate; yield stated is the yield to worst — the yield if the worst possible bond repayment takes place, reflecting the lower of the yield to maturity or the yield to call based on the previous close

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.

That was one of the all - time classic bear markets, characterized by high inflation, high unemployment, high Treasury yields and rising inflation — as well as strong rallies followed by sharp selloffs.