Sentences with phrase «yield market when»

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 lWhen 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 lwhen 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).
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