Sentences with phrase «yielding assets as»

Fear drives investors away from higher - yielding assets as they flock towards safer assets, such as gold.

Not exact matches

«If U.S. rates move too quickly, they will dislocate [high yielding] assets more broadly and the most liquid emerging markets will not be immune to a selloff,» he added, pointing to the 2013 taper tantrum as an illustration of this idea in action.

Other than real estate, which has higher yields and can act as a diversifier, Turnbull won't hold any sector or alternative - asset ETFs.

Meanwhile government bond yields, a reliable barometer of market fear, are falling to record low levels as investors engage in a panicked hunt for risk - free assets.

NEW YORK, Nov 28 - The Federal Reserve faces the challenge of standing by as financial markets «correct» as the central bank trims its asset holdings, U.S. hedge fund manager David Tepper said on Tuesday, adding he was surprised the bond - yield curve was so flat.

«Shorter duration hedge fund assets have grown at a rapid pace even as market liquidity has deteriorated, particularly in the high yield and distressed debt markets.

TIAA - CREF, which has $ 542 billion under management, began investing in cropland in 2007 as part of an effort to diversify and, well, grow its assets and achieve good yields.

With rates at near zero in the United States, and negative in Japan and Europe, the differential is a powerful lure for carry trades, in which investors borrow at ultra-low rates in currencies such as yen or sterling and buy high - yielding assets such as the kiwi.

Bonds yields have fallen as safe assets attract more interest, while U.S. crude oil futures have also fallen further below $ 39 a barrel.

As bond yields rise the spread between the two narrows, prompting asset allocation changes between equities and fixed income.

QE could be described as a tax on the private sector since it removes high yielding safe assets from the private sector and swaps them with low yielding less safe assets.

They could then reinvest that cash into higher yielding assets such as, say, emerging market debt.

Treasury yields inched higher Tuesday as a global rally for assets perceived as risky suggested that fears over a trade conflict between China and the U.S. were easing following a speech by China's President Xi Jinping.

Treasury yields are little changed, as traders focus on upbeat corporate earnings, momentarily shaking off some of the geopolitical worries that had underpinned appetite for assets perceived as havens.

Various considerations offer caution about getting too short, including the potential resurgence of risk asset volatility as market yields rise and / or as Washington events evolve — ranging from the Mueller investigation to trade tariffs.

The two largest funds in the segment — the $ 15 billion iShares iBoxx $ High Yield Corporate Bond ETF (HYG) and the $ 9 billion SPDR Bloomberg Barclays High Yield Bond ETF (JNK)-- have faced sizable asset outflows as investors fret over high valuations and rising interest rates.

There is no doubt that, based on pure, cold, logical data, stocks are the single best long - term performing asset class for disciplined investors who are not swayed by emotion, focus on earnings and dividends, and never pay too much for a stock, often as measured on a conservative beginning earnings yield relative to the Treasury bond yield basis.

Appetite for riskier assets such as stocks and high - yield bonds has been suppressed by a number of factors that have come up around the same time, but the headwinds may be transitory, according to the New York - based investment bank.

Should the Fed be more hawkish and raise rates in the next couple of meetings, both gold and the miners will likely underperform as investors position towards higher yielding assets.

The Carlyle Group («Carlyle») is one of the world's largest global alternative asset management firms that originates, structures and acts as lead equity investor in management - led buyouts, strategic minority equity investments, equity private placements, consolidations and buildups, growth capital financings, real estate opportunities, bank loans, high - yield debt, distressed assets, mezzanine debt and other investment opportunities.

Our bottom line: Persistent risk aversion not only suppresses rates across the yield curve but raises the premium on assets seen as the most safe and liquid.

Monetary easing only provokes yield - seeking speculation when low - interest money is viewed as an inferior asset.

In this environment, generating ample income will require more than a single asset type as well as a careful balance of yield and risk.

And reserve and other foreign asset holdings have grown so large that EM investment preferences have come to be seen as an important factor influencing global yields and valuations.

lets say jgbs yield -1 % and the boj pays the banks plus 5 %, if this policy is credible in anyway it will only be so to the extent that banks are willing to hold an unlimited quantity of this asset as a store of value.

«If rates go up — and I don't think they will — then the increase in yields would hurt metals and mining company prices as money left these assets and moved into fixed income.»

Higher - yielding risk assets such as local emerging market (EM) bonds look relatively attractive.

Correlations between crude oil and other higher risk assets, such as stocks, emerging market assets and high yield...

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.

2016.04.05 RBC Global Asset Management Inc. closes PH&N High Yield Bond Fund to New Investors RBC Global Asset Management Inc. today announced that as of April 7, 2016, PH&N High Yield Bond Fund («the Fund») will be closed to new investors...

As odd as it sounds, you lost $ 2,313 in net earnings, or 4.6 % of what you had been indirectly generating each year, despite buying an asset with a higher look - through yielAs odd as it sounds, you lost $ 2,313 in net earnings, or 4.6 % of what you had been indirectly generating each year, despite buying an asset with a higher look - through yielas it sounds, you lost $ 2,313 in net earnings, or 4.6 % of what you had been indirectly generating each year, despite buying an asset with a higher look - through yield.

In addition, sovereign wealth funds — which generally diversify their portfolios to include a small portion of alternate assets such as gold, private equity and real estate — are likely to raise their allocations following the low yield in government bonds over the last couple of years.

Using monthly T - bill yield and monthly dividend - adjusted closing prices for the above assets during January 1993 (as limited by SPY) through Mar 2018, we find that: Keep Reading

In a day and age in which regular asset classes that commercial portfolio managers normally consider have become overwhelmingly bloated in price as a consequence of the persistent and extended cheap money policy of global Central Bankers, an investment strategy of concentration in few select still undervalued assets versus diversification is likely the only strategy that will work moving forward in returning significant yields.

Higher oil prices would reinforce current market trends based on reflation: rising long - term bond yields and a shift out of perceived safer assets — bond proxies and low - volatility stocks — and into cyclical assets such as EM.

Investor demand for emerging market (EM) debt has been strong lately, as the near - term risk of trade wars has faded and income seekers have flocked to the asset class» higher yields.

With interest rates on low - risk investments falling to low levels in many countries, investors have sought to maintain yields by moving into higher - risk assets such as corporate debt and emerging market debt.

This is evident in a number of developments, including: increased demand for higher - risk assets; the increase in «carry trades» — a form of gearing where funds are borrowed short - term at low interest rates and invested in higher - yielding assets, often in other countries; growth in alternative investment vehicles such as hedge funds; and growth in alternative investment strategies such as selling embedded options (see Box A).

BXMT's short - term floating rate assets benefit from rising short - term interest rates, as their current yields increase with these rates.

The prevailing overvalued, overbought, and overbullish combination of conditions has historically been associated with subsequent market returns below Treasury bill yields, so while we hold about 1 % of assets in call options as a modest speculative exposure to market fluctuations, a larger exposure closer to 2 % continues to await a short - term pullback sufficient to «clear» that overbought condition.

The Strategic Total Return Fund moved the bulk of its assets from short - term Treasury securities to Treasury inflation protected securities as real yields on these securities surged well over 3 %.

Yields were already climbing this week amid expectations the improving global economy will boost inflation pressures round the world, just as major central banks scale back their asset purchases.

This skepticism about the future — even with asset prices rising — has created a negative feedback loop, driving investors to safe harbors such as cash, bonds, gold and yield - generating securities thereby reducing demand, inflation and growth in an ongoing vicious cycle.

As we noted in the last issue of The IRA, the yield on earning assets for all US banks has been falling since 2008 thanks to the social engineering of Janet Yellen and her colleagues on the Federal Open Market Committee.

The problem comes because of the scarcity of assets, one reason why high - yield credit spreads have been tightening even as short term funding rates have risen.

But when inflation is strong, as it is now, it can push the Treasury yield into subzero territory, prompting many investors to move into other so - called safe haven assets, including gold.

As they do so their incoming money bids up the price of assets and pulls down yields.

Banks» willingness to accumulate reserves depends, as I've already noted, on the cost of holding reserves, which itself depends on the interest yield of reserves compared to that of other assets banks might hold instead.

Non-asset holders were punished — their bank deposits now generate little or no income, and they were forced to move into riskier assets, such as stocks, bonds, real estate, or «anything that offers some yield and is not bolted down to the floor» (please see my answer to What kind of market distortions does the Fed loaning out money at 0 % cause?).

Central bank intervention in global bond markets has «crowded out» many traditional fixed income investors, driving them to seek yield and income from non-traditional and riskier asset classes such as high yield, emerging markets debt, leveraged loans and private credit.