The concept has historically outperformed the global high
yield market in both absolute and risk - adjusted terms.
It also applies to investors deciding whether or how much to invest in the U.S. high
yield market in the first place, which similarly occupies a proportion of the overall U.S. bond market that is determined by the activities of active investors.
Dislocations in the high
yield market in 2015 made the asset class more attractive relative to equities.
And I'm stunned to note the US (neck & neck with Japan) is one of the lowest
yielding markets in the world.
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.
The prevalence of public pensions
in the U.K., which require ongoing cash streams to service their obligations, has helped to create a
market culture that values higher
yields.
The rise
in U.S. bond
yields has dented emerging
market currencies and bond
markets, including those
in Asia.
LONDON, April 23 - Hamstrung by a renewed slump
in volatility and lack of clear
market direction, FX and bond speculators are making historically big bets on a lower dollar and higher
yields.
CNBC's Mike Santoli breaks down the
market technicals
in a 3 %
yield environment.
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.
Ken Solow, author of Buy and Hold is Dead (Again), nsays people need to follow three steps to invest
in today's
market: nform an opinion on whether the
market is expanding or contracting, looknat whether the
market is overextended and pay attention to metrics suchnas price - earnings, price - to - sales and dividend
yields to find cheapnmarkets and companies.
In marketing (and, I suppose, in life), the smallest changes can yield big result
In marketing (and, I suppose,
in life), the smallest changes can yield big result
in life), the smallest changes can
yield big results.
In a client note on Thursday titled «Yanking down the
yields,» the interest - rates strategist projected that bond
yields would be much lower than the
markets expected because central banks including the Federal Reserve were reluctant to raise interest rates.
Bond
yields were mixed and credit spreads narrowed further: Weekly BAA commercial bond rates were not reported this week, presumably due to closures
in the financial
markets.
In addition to the aforementioned concerns, Golub noted fears about whether economic growth won't meet lofty expectations and signals being sent from the bond
market, where a narrower gap between government bond
yields is kindling fears that a recession is looming.
Since the bond
market's «flash crash» back
in October — when US 10 - year Treasury
yields fell 34 basis points, or 0.34 %
in one morning — concerns regarding liquidity and how resilient the bond
market might be to shocks have lingered around the
market.
«Why shouldn't we look at strong dividend players, levered to the economy,
in sound and important businesses that pay above
market rate
yields?»
More and more, brands are turning to big data to find
market insights,
in the hope that it will
yield more scientific and more granular views into consumer behaviour.
In a year marked by a significant milestone for rising interest rates (the 10 - year Treasury note yield topping 3 percent), an unusual winner has begun to emerge in the stock market: utility stock
In a year marked by a significant milestone for rising interest rates (the 10 - year Treasury note
yield topping 3 percent), an unusual winner has begun to emerge
in the stock market: utility stock
in the stock
market: utility stocks.
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.
In the bond
market, the 10 - year US Treasury
yield fell less than 1 basis point, to 2.79 %, near the key 3 % level that traders are closely watching.
So far, though, no one is reporting any unusual outflows
in the bond
market, but Hamilton - Keen cautions investors against chasing high -
yield products.
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.
This could potentially be a problem for Greece when trying to finance itself
in the
markets, as it could mean higher
yields and repayments.
The
marketing ploy, complete with puppy wakeup calls and breakfast
in bed,
yielded these hilarious photos.
The
yield on the U.S. 10 - year Treasury jumped to its highest level since 2014 on Friday morning, underlining a wider move
in bond
markets caused by central banks moving away from financial crisis policies.
The sell off
in the
market for high
yield debt, or junk bonds, is now hitting a type of structured bond that is similar to the the type that blew up
in the financial crisis.
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.
A spike
in bond
yields and a clear change of direction from central banks means there isn't a lot of value
in global bond
markets, a fund manager told CNBC on Tuesday.
In Japan, bond yields face a demand squeeze, Yasunari Ueno, chief market economist at Mizuho Securities, said in a note last wee
In Japan, bond
yields face a demand squeeze, Yasunari Ueno, chief
market economist at Mizuho Securities, said
in a note last wee
in a note last week.
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.
MARKETS: The dollar held near a four - month high against a basket of major currencies, buoyed by the outlook for a strong U.S. economy and rising
yields amid signs of slowdown elsewhere, especially
in Europe.
The
market has likely already factored
in Treasury
yields above 3 percent for the 10 - year, says Kieran Calder of Union Bancaire Privee.
On Wednesday, bond
yields in both the U.S. and Germany reached highs on the year, which likely helped trigger a selloff
in equity
markets Thursday.
(Repeats to additional subscribers) NEW YORK, April 24 (Reuters)- The U.S. benchmark 10 - year Treasury
yield topped 3 percent for the first time
in more than four years on Tuesday, a milestone that reflects the durability of the U.S. economic expansion and stokes the view the three - decade - old bull
market in bonds is numbered.
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.
We feel this provides the best trade - off
in terms of valuations, shareholder
yield, growth expectations and the potential to buffer some of the downside if
markets sell off.
Energy companies have made up a good portion of debt issued
in the high
yield market over the past few years.
«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.
For instance,
in the travel and hospitality industry, predictive analytics techniques have been used for acquiring customers
in a cost - effective manner, for fine - tuning
marketing offers that increase repeat - usage, and for increasing revenue through effective cross selling and better
yield management.
By mid-December it was clear that a late - quarter rout
in the high -
yield bond
market was likely to hit revenues.
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.
In fact, EIU also reported that 80 percent of respondents say diversity management can yield a competitive advantage in labor market
In fact, EIU also reported that 80 percent of respondents say diversity management can
yield a competitive advantage
in labor market
in labor
markets.
Experts recommend putting away three to six months worth of expenses
in a money
market account or high -
yield savings account.
By contrast,
in August, when the
market was still anticipating that the Fed might raise its key interest rate
in September, the two high -
yield funds lost a net $ 344 million.
While overall low inventory has led to competition
in some
markets — about a quarter of 2017 home sales
yielded sales prices higher than the asking price, according to Zillow — it's a different story for some sellers.
In the case of Lay's, its Do Us a Flavour contest has
yielded a more informed, granular picture of how people prefer to engage with the brand, particularly online, says Susan Irving, director of
marketing for PepsiCo Food Canada, which owns Frito Lay Canada.