With interest rates at rock - bottom levels, safe yet high -
yielding assets remain scarce.
Not exact matches
The
asset class, represented by the Markit iBoxx USD Liquid High
Yield Index, has seen spreads relative to Treasuries widen sharply, despite the fact that defaults
remain well below historical levels.
High -
yield bonds are in the eighth year of an investment cycle that has seen
assets under management grow threefold, to $ 300 billion, so interest among investors
remains high.
The impact of central bank
asset purchases on the financial markets
remains wholly dependent on investor psychology, particularly the willingness of investors to chase
yield and to ignore any risk of capital loss.
Correlations between crude oil and other higher risk
assets, such as stocks, emerging market
assets and high
yield bonds,
remain elevated.
If the
yields on these
assets with near - guaranteed returns
remain low, then buying in precious metals should
remain fairly steady, if not strong.
«We expect in the current market that quality peri-urban
assets such as these with rezoning potential and multiples titles will
remain popular, particularly investment
assets with reliable tenants that generate 7 to 8 per cent
yields to investors,» Mr Forrest said.
Although recently rising prices for stocks, high -
yield bonds, commodities and other riskier
assets would suggest otherwise, investors
remain skittish over the still unresolved and quite concerning risks facing financial markets, such as the U.S. presidential election, the potentially prolonged post-Brexit renegotiations, Italian bank solvency and a slowing China.
The case for high
yield rests largely on the fact that it
remains one of the few
asset classes left that can offer a greater than 5 %
yield.
Correlations between crude oil and other higher risk
assets, such as stocks, emerging market
assets and high
yield bonds,
remain elevated.
ABCP will
remain but with safer classes of
asset - backed securities, wider spreads, and larger margins of safety, at least until the next lust for
yield comes upon us.
U.S. preferred stocks are perceived to be an attractive investment, as they have historically offered higher
yields than other
asset classes, especially when the global rates
remain low.
As for its
asset purchase program, the BOJ reaffirmed that, in keeping with its so - called «QQE With
Yield Curve Control» framework, the BOJ «will purchase Japanese government bonds (JGBs) so that 10 - year JGB
yields will
remain at around zero percent.»
So, its distribution
yield of ~ 6.6 % should
remain safe despite the
asset sales.
One has to wonder, if the U.S. Fed does eventually raise short - term rates, would the
yield curve
remain flat, or would global demand for longer
assets move the curve into an inverted state?
For the most part, it is a trying time for investors, especially for those retirees who live off of their investable
assets, with fairly flat to negative returns from global equity markets while bond and dividend
yields remain painfully dismal.
Though the technical specifics
remain unclear, the lawmaker touts that Turkcoin would aim to tokenize
asset - backed securities for the issuance, which he argued would
yield lower risks than existing cryptocurrencies.
According to the Boulder Group, net lease properties in the dollar store sector will
remain attractive to investors thanks to the higher
yields compared with other net lease
assets.
Yields on net lease
assets remain greater than what's on offer through other investment strategies.
CBRE is reporting that investors in Asia Pacific real estate in 2017
remain heavily focused on
yield spreads when seeking
assets as investment intentions, and are moving further away from capital appreciation strategies.
From what I see here in Asia, the interest in good
yields remains strong and the demand for safe quality
assets is high as well.
@Sam Van Horebeek, referencing «From what I see here in Asia, the interest in good
yields remains strong and the demand for safe quality
assets is high as well.