Capital - intensive companies turn to the high -
yield market when they are not able to finance all their capital needs through earnings or bank borrowings.
Not exact matches
When bond
yields rise, the
market price to purchase or sell those bonds falls.
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..
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.
This could potentially be a problem for Greece
when trying to finance itself in the
markets, as it could mean higher
yields and repayments.
Looking at the forward earnings
yield for S&P 500 stocks, BAML finds dispersion is the highest since 2009,
when the
market was just starting to recover from the financial crisis.
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.
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.
«According to the higher interest rates and bond
yields projected by consensus, the
market has started to wonder
when the BOE would start raising rates again.
History shows
when the benchmark rate for everything in the economy from corporate bond
yields to mortgage rates moves by this much, this fast, the stock
market struggles in the following months.
That
yield was moving higher again Tuesday,
when the stock
market swung back to the positive.
EPRO's managers made a tactical move to cash in the fall
when they saw downward
market momentum, for example, while HYLD has strong
yield compared to peers, with a 30 - day SEC
yield of 11.52 percent.
When bonds
yield 1.75 % for investment - grade bonds, then it's difficult to turn that into a 5 % -10 % return going forward... If he wants to argue against that, and talk about Dow 5000 and bear and bull
markets, then he's welcome to, but he's pushing at windmills in my opinion, and he belongs back in his ivory tower.
The 35 year bull
market in bonds most likely ended on July 8, 2016
when the 10 year maturity U.S. Treasury Note
yield hit an all - time low of 1.36 %.
Is n`t — do n`t you think there will come a time
when the
yield on the 10 year will start to provide some competition from the
yields in the stock
market and that will have a problem for equity investors?
Weak internals in an overvalued
market signal trouble, particularly
when yield trends are hostile.
Among emerging
market stocks, results with rule - based screening were even higher —
when these screens were applied, the EM High Dividend
Yield Index outperformed its benchmark by 5.1 points in our simulation.
When the stock
market dividend
yield yields more than a 10 - year US treasury bond
yield, it's generally a good sign to invest in equities.
I still think there will be a flight to safety in sovereign bonds
when stocks have a bear
market but other areas such as high
yield and corporate debt could run into some problems.
$ 1.4 billion represents 5.6 % of the current
market cap, which provides investors a total
yield of 6.6 %
when combined with Southwest's 1 % dividend
yield.
At the same time, some 70 per cent of government - issued bonds are
yielding 1 per cent or less, and
when you combine the equity / bond value of the 15 largest global
markets they've never been more expensive.
Mr. Swaffield has described the «
yield hog» chasing strategy that we used to laugh at
when I was a junk bond
market professional.
When I was a junk bond trader in the 1990's, high
yield money would be pulled from the
market abruptly and quickly, usually about a week before the stock
market would undergo a big sell - off.
Liquidity risk High
yield bonds that may have been easy to buy or sell
when market conditions were calm can suddenly become very difficult to sell
when volatility increases.
Funds with
yields that are relatively high
when compared to other funds in the same investment category are likely to be engaging in
market timing by building a defensive cash position that in turn generates higher income.
However, the reaction of the bond
market is another story altogether, with
yields on 10 - year Treasuries recently returning to about where they were
when this year began.
Similarly,
when interest rates fall, the price will rise to reduce the
yield and once again make it
market competitive.
Market movements were particularly sharp during a 20 - minute window
when yields slipped and then rose by around 20 basis points (Graph 2, centre panel).
Those are what you want
when markets falter, but they have extremely low
yields today and typically are very sensitive to rising rates.
«
When I purchased long - term zero - coupon bonds in the early 1980's at
market yields in excess of 13 %, I welcomed the prospect of outsized volatility because I felt it would eventually work in my favour.»
«Stock
market valuations looked far less frothy
when compared with bond
yields.
When the
market is chasing
yield and chasing low quality, we're going to perform well, but less well than the
market.
@magneto i think that the point of gilts and cash is not necessarily to provide a positive inflation adjusted
yield but to «lose - you-less»
when in a bear
market and your portfolio takes a hit.
The repurchase of $ 10 billion a year would represent 5 % of the current
market cap and
when combined with Wal - Mart's 3 % dividend
yield equals an impressive
yield of 8 %.
For example,
when there is a lot of uncertainty in the
market investors tend to park their money in super safe US Treasuries, causing the
yield of US treasuries to drop.
However,
yields on longer - term securities could be trending down sometimes
when market interest rates are set to get lower for a foreseeable future to accommodate ongoing weak economic activities.
The
market «prices in» the tax - deductible feature on municipal coupon payments, so
when you aren't a beneficiary of said tax treatment, then I (at least) believe it makes more sense to get tax - free income on higher
yield corporate debt (of the same credit profile).
Now we see the real weakness of a high
yield portfolio; it all goes well
when the
market is up... but it goes horribly wrong
when the
market goes down.
Outside of the 1980 bond performance (
when yields dropped from nearly 14 percent to 9.5 percent), the two most recent equity bear
market performances by bonds really stand out.
But I am concerned that late - cycle entrants into risk assets like stocks and high -
yield bonds are taking a leap of faith at a time
when there is less room for
markets to move up and growing risks of them falling back.
If we extend this thought to the bond
market, we find an underlying truth
when it comes to junk and
yields.
(For example, a bond paying 4 % typically fetches less
when other, similarly situated bonds are paying 5 %; the
market is usually smart and fast enough to price that 4 % bond to
yield 5 %.)
By
market definition, a «normal
yield curve» is
when long rates are higher than short rates (line is above zero).
Certainly, Tesla's business is complete different from that of WeWork, but it remains a great example of how the
market is blind
when it comes to
yield.
And I said, «I wonder if you thought about framing in a different way, you know, whether it's dividend
yield or earnings
yield,
when the
market goes down 20 %, 40 %, 50 %.»
When 10 - yr Bund
yields fell to.05 pc, there was a ready rationalization in the form of European Central Financial institution dedication to flood the
market with $ 60bn (# 44bn) of clean liquidity each month.
Instead, they concentrate in periods
when the quality of
market action has already deteriorated on the basis of
yield trends, price action and so forth.
Stocks with high dividend
yields are attractive from the standpoint that they are providing meaningful income
when the broad
market is flat, they can buffer against a downturn due to the
yield they're throwing off, and best of all, during a
market upturn, they continue to provide
yield and capital appreciation simultaneously.
When the spread between the 90 - day and 10 - year Treasury yield is 121 basis points or more, the stock market does much better than when it's 120 basis points or l
When the spread between the 90 - day and 10 - year Treasury
yield is 121 basis points or more, the stock
market does much better than
when it's 120 basis points or l
when it's 120 basis points or less.
In contrast, between late - 2011 and mid-2014, T - bill
yields averaged less than 5 basis points, and the majority of the intervening
market gains overlapped the roughly one - third of that span
when our present, adapted measures would encourage a constructive outlook (largely on the basis of favorable
market internals).