The «discount» in a discount bond doesn't necessarily mean that investors get a better
yield than the market is offering, just a price below par.
Maple - Brown's investments in general had lower price — earnings ratios, lower valuations of book value, stronger balance sheets, and a higher dividend
yield than the market.
«Obviously, the details of every deal are different, but buying in at 7.25 percent, the buyer is getting a better initial
yield than the market on average,» Costello said.
Not exact matches
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.
So, it is a very different
market than it was 10 years ago, and you're going to see a lot of corporate bond issuance as these infrastructure projects go out there, and you can capture some pretty good
yields and you know what you're buying because it's a corporate bond.
Stock
markets were routed around the globe on Monday and bond
yields rose as resurgent U.S. inflation raised the possibility central banks would tighten policy more aggressively
than had been expected.
The benchmark 10 - year
yield hit a high of 2.626 % on March 13, briefly ticking above the 2.60 % threshold that the bond -
market veteran Bill Gross had said was «much more important
than Dow 20,000.»
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.
(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.
«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.
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.
On average, private business loans from relatives and friends have interest rates 2 to 3 percent lower
than market rates and 1 to 2 percent higher
than high -
yield savings rates.
Estimates of what companies would be hypothetically worth if they were broken up often
yield higher figures
than what a company currently trades for in the real
market.
But the bank has taken more extreme measures, such as ramping up purchases to more
than 40 percent of the
market overall and saying it would control the
yield curve by keeping the 10 - year government bond
yield around 0 percent.
More
than a dozen financial institutions listed by Bankrate have savings and money
market accounts with annual percentage
yields of 1 percent or more.
As discussed below, the Department believes the approach adopted in this final rule likely
yields the most desirable outcomes including avoidance of costly
market disruptions, more compliance cost savings
than other alternatives, and reduced investor losses.
Also, bills have typically traded below other money
market rates during tightening cycles, as they do now; periods where bills trade at or above other rates have been the exception and not the rule.36 Thus, the smaller increase in bill
yields than in rates on other term instruments is not surprising, and I do not read it as undermining the general conclusion that the policy rate increase was effective in firming money
market conditions.37
In a zero - interest rate world (Figure 7), these provide
yields that are much higher
than those found in more conventional investments like U.S. Treasury bonds or money
market accounts.
The Senate version is more onerous: It would affect a small portion of the investment - grade
market, but would have a much greater impact
than the House version on the high -
yield market.
If you want to earn interest on your money at a higher rate
than what the
Yield Pledge ® Checking account offers after the intro offer expires, you might find a money
market account to be useful.
For example, while high
yield spreads are considerably lower
than they were at the January
market bottom, they are approximately 200 basis points (2 percent) wider
than they were two years ago, as Bloomberg data shows.
«We are hoping «mom and pop» can do a little bit better
than the bond
market at a time of historically low
yields.»
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.
-LSB-...]
than lament the low
yields, why not look for undervalued bonds during a
market correction?
But yes, to my Target Withdrawal rate # 2, if you withdrawal no more
than the
market dividend
yield, then one should be able to create a perpetual income machine.
The methodology provides a well - screened group of stocks that also delivers
yields greater
than the
market (S&P 500
yields ~ 2 % while the stocks in our portfolio have an average
yield of 6.5 %), safety in the sustainability of the
yield because of strong free cash flow, and the potential for capital gains as each stock is currently undervalued.
Sands» forward
yield of 4 %, which is much higher
than Wynn's 1 %
yield and MGM's 1.4 %
yield, should also protect the stock during
market downturns.
The quality portfolio may have higher risk - adjusted returns
than the broad
market, but it will also likely have lower overall returns due to the lower
yield.
Oil prices have fallen more
than 15 percent since March 4 to a six - year low of $ 42.3, wiping out $ 7 billion of
market value of high -
yield debt issued by energy companies.
Yield quotations more closely reflect the current earnings of money
market funds
than the total return quotations.
However, these higher
yielding bonds are often the most risky, resulting in a lower risk - adjusted return
than the broad
market.
Yields and
market values will fluctuate, and if sold prior to maturity, bonds may be worth more or less
than the original investment.
To some extent, stock
market action also implies expectations for slower economic growth, though interest rate signals, such as a flat
yield curve, are more suggestive of slow growth
than stock
market action is, and we've yet to see a substantial widening of credit spreads that would suggest imminent recession.
Yields are too rich, and the
market is beginning to wake up to the fact that you need to be compensated by more
than 500 basis points.
An unusually high
yield relative to similar bonds is often an indication that the
market is anticipating a downgrade or perceives that bond to have more risk
than the others and therefore has traded the bond's price down (thereby increasing its
yield).
We have viewed a 10 - year Treasury
yield range of 3.50 - 4.00 % as a more challenging level for equity headwinds
than a
market environment with 3.00 % 10 - year Treasury
yields.
On the short - side of the
yield curve, the consensus seems to interpret the Federal Open
Market Committee's recent use of the word «gradual» as an indication that it will allow inflation to run higher
than 2 % in order to make up for the last 20 years of below - target growth.
Typically, the
market for high
yield bonds is less liquid
than the
market for investment grade or government bonds.
This very low
market volatility can lead investors to take on more risk, and in a period of still relatively low interest rates, to «reach for
yield» — that is, buy riskier assets
than one would otherwise, in order to achieve a desired profit or savings goal.
In bonds, the
Market Climate remains characterized by unfavorable valuations and unfavorable
yield pressures, holding the Strategic Total Return Fund to a duration of less
than 1 year.
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.
Our own measures of
market internals remain unfavorable, and trading volume has been persistently weak, suggesting that the rebound may be more reflective of short - covering
than a resumption of the insistent
yield - seeking speculation observed prior to mid-2014.
Secondary real estate cities outside of core gateway cities such as New York, London, Tokyo, Los Angeles, San Francisco, Paris, Hong Kong, Sydney, Seoul, and Shanghai continue to provide opportunities for
yields in
markets and asset types that fall farther along the risk curve
than those available in gateway
markets that are saturated.
Why business reality — dividend
yields and earnings growth — is more important
than market expectations
For example, the research shows that in the 12 months before a
market peak, U.S. 10 - year Treasury
yields have on average widened by more
than 100 basis points.
For example, as of this writing, the TD Canadian Money
Market Fund sports an
yield of 0.41 percent which is much less
than the typical 1.0 percent paid by discount broker HISAs.
While Treasury
yields may seem unappetizing to U.S. investors, they are much higher
than in some other developed
markets — like Germany.
The one - day loss for many funds, including Vanguard Total Bond
Market, iShares Core U.S. Aggregate Bond, Pimco Total Return and Metropolitan West Total Return, while less
than a half a percentage point, still amounted to more
than 10 percent of their current
yield.
From Bigger
Yields To Better
Yields: Lively competition from strong and agile smaller banks is driving big trade - finance providers to focus on profitability rather
than market share.
However, they remain close to the low level prevailing before the Asian crisis, reflecting the generally benign environment for most emerging
markets as well as investor appetite for higher
yields than currently prevail in industrial countries.