Sentences with phrase «yield market over»

Energy companies have made up a good portion of debt issued in the high yield market over the past few years.

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.

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.

Their declining currencies against the dollar (8 - 9 percent over the past 12 months), falling stock market values since the beginning of the year and high (India) and rising (Brazil) bond yields are reflecting their funding difficulties.

Instead the market environment over the past 24 hours has mimicked last week's pattern, with yields rising and stocks falling.

«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.

Bonds due in 2018 and won by BofA were «aggressively» priced with a 1.64 percent yield that narrowed Illinois» spread over Municipal Market Data's benchmark triple - A yield curve to 70 basis points from 100 basis points ahead of the sale, Greg Saulnier, a MMD analyst, said.

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.

Normally this would put remarkable pressure on the price of gold — higher yields raise the opportunity cost of buying gold — but over the same period, the U.S. dollar has steadily weakened and is now officially in a bear market.

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

There are a multitude of reasons as to why this occurs but it's a powerful enough force that many investors have done quite well for themselves over an investing lifetime by focusing on dividend stocks, specifically one of two strategies - dividend growth, which focuses on acquiring a diversified portfolio of companies that have raised their dividends at rates considerably above average and high dividend yield, which focuses on stocks that offer significantly above - average dividend yields as measured by the dividend rate compared to the stock market price.

Against this environment, our strategists remain bullish on equities and continue to favor emerging market currencies and, in the fixed income space, prefer local markets over external debt and maintain their higher - yielding yet better - quality bias.

To the extent that lower Treasury yields are even weakly associated with higher equity valuations, recognize that this effect is also expressed over time as lower subsequent stock market returns.

Depressed interest rates were typically associated with weak market outcomes over the following decade, largely because investors reacted to depressed interest rates with yield - seeking speculation - driving valuations up and driving subsequent prospective returns down.

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While the most extreme overvalued, overbought, overbullish, rising - yield syndrome we define has generally appeared only at the most wicked market peaks in history, investors have ignored those conditions over the past year.

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.

Positions that have recently come undone include betting on steepening yield curves and inflation expectations (inflation - linked over nominal bonds)-- and in equity markets, picking value over growth shares.

As yields on preferred shares rose over the past year and a half, many corporate issuers turned to debt markets as a cheaper source of financing for their funding needs.

Anyone looking for income from certificates of deposit, money market funds or savings accounts over the past few years has been disappointed in their minuscule yields.

A 3 % return is a good conservative dividend yield at market prices but over time, if you are carefully choosing your dividend investments, you can grow that dividends.

In order to drive the long - term return on stocks even 1 % higher, the market would have to plunge over 40 % (this would drive the yield on stocks from the current 1.4 % to 2.4 %).

To learn our disciplined trading strategy and market timing model that has yielded consistent profits over the past 10 years, and to receive our best daily stock picks and ETFs, subscribe to The Wagner Daily ETF and stock newsletter.

The average investment - grade (high - yield) bond trades on less than 32 % (36 %) of days over the prior six months — liquidity in corporate bonds was considerably lower than in traditional listed equity markets.

We believe this positioning buildup led to an April break in the usual positive correlation between the USD and the U.S. yield premium over other developed markets.

How does the U.S. stock market earnings yield (inverse of price - to - earnings ratio, or E / P) interact with the U.S. inflation rate over the long run?

«Yield spreads over developed market bonds are reasonable, and the opportunities for adding value are more extensive, although emerging market currencies may need to weaken further in the short term.»

This is the difference between the 5 - year nominal treasury yield and the 5 - year TIPs yield and is suppose to reflect treasury market's forecast for the average annual inflation rate over the next five years.

In contrast, medium - term inflation expectations implied by financial market prices, which are calculated as the difference between nominal and indexed bond yields, have been broadly stable at around 2.6 per cent over the past nine months.

-LSB-...] The Most Interesting Asset Class Over the Next Decade «Vanguard highlighted high - yield bonds to show how they typically perform worse than other types of bonds during a stock market drop.»

A yield well over 6 %, management guidance for double - digit dividend growth, and the possibility that shares are 59 % undervalued means this could be the single greatest opportunity in the market for long - term dividend growth investors.

The continuing low level of government bond yields has supported the search for yield that has been evident over the past couple of years, with the spread between yields on US government debt and yields on both corporate and emerging market debt remaining around historical lows over the past three months (Box B).

Though organic marketing can certainly yield measurable results over time, ads can really augment your marketing efforts.

Interest rates on new fixed - rate loans have fallen over recent months, reflecting falls in yields in capital markets in which these loans are funded (Graph 34).

Studies show that companies with the highest dividend yields tend to outperform the broader market over time.

We adhere to a conservative, value - oriented investment approach that has yielded attractive results over a variety of market cycles.

The strong outperformance of credit - related securities and progressive trend in interest rates has emboldened many investors to bulk up on high yield funds over the course of this bull market.

This puts it slightly over the 0.61 % rate on EverBank Yield Pledge Money Market, although you won't find any introductory bonus like EverBank's 12 - month 1.11 % rate.

This is to both avoid over stimulating the housing market (a mistake they now admit occurred during the last cycle) and to avoid the negative signal of inverting the yield curve.

Also, if the future prospects of D are just as good then, the market should not offer much more than a 4 % yield, which means a price appreciation of 47 % (1.08 ^ 5) over 5 years is not unreasonable.

The changes occurring in today's high - yield markets, however, indicate that history may not be a perfect guide for investors over the next credit cycle.

Apart from the virtues of an ETF like TBT that can be godsend in a bond market sell - off, it's worth pulling back and looking at Treasury yields over the longer term.

An alternative, and perhaps more likely, interpretation is that the market expects that the target cash rate will remain below its average over recent years for some time, and this expectation is reflected in bond yields.

We look for the cost of bank funding to rise faster than the yield on earning assets over the next two years, a situation that is likely to put an effective cap on bank earnings and public market valuations.

BMO Capital Markets strategists on Thursday pondered a formation known as a «double top» for the 10 - year yield at around 3.033 per cent, the approximate intraday high over the past two sessions.

The decline in bond yields was more than unwound over the second half of June and July, again reflecting US market developments.

The Dow and S&P indexes suffered some of their worst losses of the year last week, and a shocking price move in the bond market sent the benchmark 10 - year Treasury yield below 2 percent, the lowest level in over a year.

In effect, market gains (over and above T - bill yields) from P / E multiples over 18 - 19 have historically been purely temporary.

Yield spreads between emerging market sovereign debt and US Treasuries have remained relatively low over the past three months in most markets (Graph 12).

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.