Sentences with phrase «yielding assets when»

A traditional static indexing approach leaves an investor overweight the riskiest assets at the riskiest times and underweight those low risk higher yielding assets when their returns are likely to be highest.

Not exact matches

Yields have an inverse relationship to bond prices and fall when investors flock to a so - called safe haven asset.

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

At a time when demand for income generating assets is at an all - time high, the yields on income generating assets are at, or near, all - time lows.

Former Fed Governor Stein highlighted that Federal Reserve's monetary policy transmission mechanism works through the «recruitment channel,» in such way that investors are «enlisted» to achieve central bank objectives by taking higher credit risks, or to rebalance portfolio by buying longer - term bonds (thus taking on higher duration risk) to seek higher yield when faced with diminished returns from safe assets.

Although decades of history have conclusively proved it is more profitable to be an owner of corporate America (viz., stocks), rather than a lender to it (viz., bonds), there are times when equities are unattractive compared to other asset classes (think late - 1999 when stock prices had risen so high the earnings yields were almost non-existent) or they do not fit with the particular goals or needs of the portfolio owner.

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.

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.

When investors look for less yield and more total return (capital appreciation) in certain asset classes, the equity sensitivity also plays an increasing role in absolute risk.

«The role of active investors is to find value, but when all asset classes are overvalued, the only way to survive is by using financial engineering to short volatility in some form... In world of ultra-low interest rates shorting volatility has become an alternative to fixed income... The global demand for yield is now unmatched in human history.

An easy rule of thumb I use is to start asset allocating more into equities when the S&P 500 dividend yield is equal to or greater than the 10 - year yield.

Even when this bond drops to a 2 % yield, it may still have value in relation to other assets.

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.

That was highlighted last month, when investors redeemed about US$ 3.6 billion from BlackRock's high - yield ETF in six days as the pipeline for high - yield offerings grew, according to the asset manager.

Having said that, we find validity in WHT differential as a significant driver of performance when investing in high yielding assets.

Secondly, when investors begin to seek yield from two very different asset classes — fixed - income investments vs. equities — rising stock prices follow as investors bid down a yield to match alternatives.

When the Fed takes the punchbowl away, bond yields should rise and most risky assets — like stocks — should fall.

For instance, when asset prices are rising, yields are falling and future expected returns are declining, the efficient frontier may shift downward for assets across the board.

The All Asset and All Authority strategies have provided attractive cumulative returns since January 2016, when market conditions became more supportive of tactically elevated exposure to select «Third Pillar» assets (inflation - linked investments, high yield bonds, emerging market (EM) assets).

With bond yields trending higher, on days when market - moving economic data is released, bond investors react and the yield curve adjusts, helping to dampen the impact on risk - sensitive assets.

This is on top of the problem that when high - quality long interest rates are so low, it is typically a bad time to try to make money in financial assets, because returns on risky assets are typically only 0 - 2 % percent higher than the yield on long BBB / Baa debt over the long run.

Many other assets typically included in income portfolios have held up well, and some have actually performed better, when yields have been rising.

When somebody invests in consumer loans, in the first several months, they typically get the full rate of return based on the interest rate of the loans, but when the charge - offs come in, the yield on that asset comes dWhen somebody invests in consumer loans, in the first several months, they typically get the full rate of return based on the interest rate of the loans, but when the charge - offs come in, the yield on that asset comes dwhen the charge - offs come in, the yield on that asset comes down.

Although the price has held up and I could have been receiving the 6 - 7 % yield for the last 2 years, it was a much riskier asset than when I bought it (some shares were bought with a 25 % + / - yield) and no margin of safety.

This cycle will turn when the cash flow yield of assets reaches levels people can make money on in the worst environments; where equity funds new projects with no debt, and the profit is obvious.

The time to add to high risk assets is when no one wants to touch a high yield bond.

This yield was as low as 1.63 % at the beginning of May, increasing to a high of 2.99 % before the FOMC's September meeting when the markets thought the Fed might begin tapering its asset purchases.

In fact, when looking at the asset class yields of bonds, preferreds and common equity, one can see that preferreds offer the highest yields.

However, since mREITs earn the yield from their securities, when interest rates rise it can create opportunities to buy new assets at higher yields, and potentially improve future returns.

This raises the risk of a self - reinforcing move that will only end when unlevered and lightly levered buyers soak up the high yielding safe assets that couldn't find a home elsewhere.

And while some investors have gravitated to dividend - paying stocks for their relatively robust yields when compared with high - quality bonds, the two asset classes are not interchangeable.

When you see the Total Return in the examples in the article, I am referring to an aggregation of the cash flow yield plus the average annual capital appreciation of an investment asset.

You just enter five data points (asset name, dollar amount of it held, when it pays, and its annualized estimated yield - get it from the fund's prospectus, website, other source, or guess) into the green - shaded areas, and it automatically calculates all of the income generated in all of the different time frames (along with all of the totals).

Let us assume that you hold a significant proportion of your assets in a short - term T - bill ETF that currently yields 0 % in an environment when inflation is 2 %.

This suggests that NTRs may offer a better option for investors who are concerned about rich public REIT valuations that may overstate underlying asset value, especially now, when traded REIT prices are at historic highs and yields are near historic lows.

«Although prices of Class A assets in the U.S. are high and yields are lower, the promise of reliable returns leads to sustained interest in the sector overall, especially when compared to other global markets,» noted said Greg Williams, national sector leader for KPMG's Building, Construction & Real Estate division.

If you invested your $ 67,500 into a capital asset yielding 12 %, what would your investment be worth 30 years from now when your mortgage on the above property pays off?

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.