Sentences with phrase «yield premium over»

Good direct CDs seem to be the best ticket for that, considering that my average yield premium over Treasuries of same maturity is over 1 percentage point (e.g., CD at 3 % if Treasury yield at 2 %) for CDs bought over the last 6.5 years.

For this reason, GSE debt obligations often carry a yield premium over Treasury securities with comparable maturities.

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.

Not exact matches

For, with long - term taxable bonds yielding 5 percent and long - term tax - exempt bonds 3 percent, a business operation that could utilize equity capital at 10 percent clearly was worth some premium to investors over the equity capital employed.

(This rate is the difference between the yield on bonds that include an inflation risk premium and those on inflation protected bonds; once you «net out» the latter, what's left over is inflation expectations.)

The share price is depressed a small amount but options premiums and the underlying yield of 12.7 % have kept me in the black for over a year.

Also, the yield on the 10 - year Treasury note was over 6 % 15 years ago versus roughly 2 % today, making the risk premium of stocks versus bonds much higher today than it was then.

Despite their high real yields, the premiums over face value would erode in the event of deflation (though the securities do not mature at less than par in any event).

If you wanted a little more call premium you could sell the 28 strike instead of the 27 strike, and get 7.3 % annualized yield from the call premium, plus the 8.4 % dividend for a total yield over 15 %.

In developed markets, the right to a certain return of capital is actually costing anywhere from — 1.5 % to — 0.5 % per year in real purchasing power.1 On the other hand, real yields in many of the larger emerging market economies reside solidly in positive territory — returning anywhere from about a 1 % premium over inflation in Mexico and Russia to more than 6 % in the case of Brazil.

The stock has surged nearly 30 % over the last six months and trades at a premium multiple and dividend yield relative to its history.

Corporate debt yields include a corporate risk premium over treasury yields.

The options yield over 10 % / year in call premium income.

Also, the yield on the 10 - year Treasury note was over 6 % 15 years ago versus roughly 2 % today, making the risk premium of stocks versus bonds much higher today than it was then.

Seemingly, this behavior might be construed as not leading to outperformance over time, because every spike in option - adjusted spread (OAS), a standard measure of the yield premium required by high - yield bondholders, would tend to eventually retract, and gains could easily be wiped out by symmetrical losses on the other side.

Also, like the Fortune column points out, the thesis that interest rates will inevitably rise, so bonds are a bad idea but stocks are now undervalued because of wide premiums over bonds is seriously flawed because if bond yields rise, it will be bad for bonds but the equity premium will drop as well, so it may not be necessarily good for stocks.

It's obvious that CDs have done and will do better than Treasuries of the same maturity if held to maturity, since the yield premiums have been very rich most of the time over the last 6.5 years, and currently are quite good.

Discounts and premiums on securities purchased are amortized over the life of the respective securities using the effective yield method.

With no opportunity to reinvest distributions, an investment at a 20 % premium will yield an average expected return of 8.3 % over the long term.

The average junk bond risk premium is 4.55 percentage points over comparable Treasury yields, and this has helped buffer high yields somewhat from rising Treasury rates.

Given that those bonds yield a 1.5 percentage point premium over government bonds (which have a default risk close to zero), a corporate bond investor is likely to be left with a one percentage point advantage over government bonds after accounting for the risk of loss.

If a less specific group of bonds can be delivered to create a new unit, i.e., the bonds must satisfy certain constraints on issuer percentages, issue sizes, duration [interest rate sensitivity], convexity [sensitivity to interest rate sensitivity], sector percentages, option - adjusted spread / yield, etc., then arbitrage can proceed more rapidly, and premiums over NAV should be smaller.

I re-ran the analysis that Michael and I did in our initial article, but I switched to the new capital market assumptions I use which allow for increasing bond yields over time while keeping a fixed average equity premium over bonds.

Thus, while TIPS yields are at historically low levels, TIPS continue to look like a clear choice over nominal Treasuries in relative terms, because investors aren't paying a premium for unexpected inflation.

You can even find better prices when you book in advance as once the resorts reach a certain occupancy level they then put in place «yield management» and the prices begin to increase as the occupancy increases over the busy peak periods and they then charge what is called a «rack rate» or premium rate

Invested over those same two decades, the difference in premiums could yield more than $ 130,000 in savings.

For anti-inflammatory and non-narcotic medications, these are less severe and will yield lower premiums; the same can be said for any medication bought over the counter such as ibuprofen.

Your statement regarding the disclosure of «Yield Spread Premiums» by Mortgage Brokers is far over due.