Eventually, they'll have to turn to assets like stocks, commodities and higher -
yielding bond products that carry greater return — and greater risk.
Not exact matches
The iShares JPMorgan USD Emerging Markets
Bond fund, an index
product that tracks the sector, has a trailing 12 - month
yield of 4.33 percent.
So far, though, no one is reporting any unusual outflows in the
bond market, but Hamilton - Keen cautions investors against chasing high -
yield products.
While it's better to invest than keep money under a mattress, buying risk free securities, such as guaranteed income certificates or low -
yielding government
bonds, could actually be riskier than purchasing higher returning
products, says Ted Rechtshaffen, president and CEO of Toronto's TriDelta Financial Partners.
This leaves us roughly in the same position that we started the year, slightly overweight to spread
product, i.e., investment - grade and high -
yield corporate
bonds and emerging markets (more recently, we also went back to a slight overweight on commercial mortgage - backed securities).
Cumulative inflows into the iShares Short Maturity
Bond ETF (NEAR), Floating Rate
Bond ETF, SPDR Bloomberg Barclays Short Term High
Yield Bond ETF, PowerShares Senior Loan Portfolio, and the Vanguard Short - Term Corporate
Bond ETF topped $ 400 million in total for the first session of the week, the highest since the inception date of the most recent member of this
product group.
At Bear, Stearns & Co., Mr. Abbott served as a Vice President in Financial Analytics & Structured Transactions (F.A.S.T) where he structured and reverse engineered complex CDO transactions, secured by a wide range of debt
products, including high
yield bonds, senior secured leverage loans, trust preferred bank loans, RMBS as well as other esoteric receivables.
«Exchange - traded
products introduce self - reflexivity by creating a highly liquid security (listed stock) that tracks a potentially illiquid underlying instrument (e.g. high -
yield bonds, commodity futures)» (again, Cole's «Prisoner's Dilemma»).
For a number of years, concerns had been expressed about the underpricing of risk in a range of financial instruments and the associated search for
yield as investors sought higher returns in non-standard financial
products as the
yield on more standard
products such as government
bonds was deemed to be inadequate.
Yet low nominal gross domestic
product growth and aging populations argue for lower
bond yields than in the past — and sustained demand for high quality
bonds.
Over time, MFS has been a leading innovator in the asset management industry, including creating one of the first in - house research departments in the mutual fund industry in 1932, launching the first high -
yield municipal
bond fund and the first global balanced fund, and more recently creating «outcome - oriented»
products, such as its line of target - risk, target - date, and other asset allocation strategies.
However, breaking the carbon - carbon
bonds, in order to shorten the molecular chains, is harder; extreme temperatures are needed, and often
yield unwanted
products.
The average
yield of
bonds in the S&P 500 7 - 10 Year Investment Grade Corporate
Bond Index has fallen by 94bps since year end as the
yield thirsty market place has hunted
yield oriented
products.
The index series seeks track the entirety of Canada's fixed income market by providing performance measurement tools that range from Treasury bills, benchmark sovereigns (through core fixed income
products) to Canadian high -
yield and real - return
bonds.
the relationship between interest rates and time, determined by plotting the
yields of all or as many
bonds of similar credit quality (eg: Treasuries or AA - rated Corporates), against their maturities;
yield curves typically slope upward since longer maturities normally have higher
yields, although it can be flat or even inverted; the Fixed Income Search Results Scattergraph shows several smoothed
yield curves for different fixed - income
product types and credit qualities; these are based on
bonds that Fidelity recognizes and are not equal to the entire universe of
bonds, which is significantly larger than the number of
bonds offered by Fidelity on any given day
Two by -
products of the economy's strength also support the idea that we may be close to a bottom in
bond yields.
By contrast, there would be a reason to hold a low -
yield (non-zero)
bond rather than an alternative low -
yield product.
The RAFI ™
Bonds US Investment Grade Index and the RAFI
Bonds US High
Yield Index are not sponsored, endorsed, sold or promoted by ALM Research Solutions, LLC, and ALM Research Solutions, LLC makes no representation regarding the advisability of investing in such
product (s).
Yields are up across fixed income
products as seen by the
Bond Yield Summary Chart.
In this period, debt
products like fixed deposit and
bonds would have
yielded much better returns.
This added
bond holding could help the fund boost
yield and since it is such short term the
product could see very little in terms of defaults.
Depending on your comfort level, the idea of choosing fixed income other than government
bonds / GICs / cash has some appeal (especially with historically low gov» t
bond yields) but just be sure you understand the
products you are buying, the inherent risks, the embedded options, the liquidity, the seniority of the debt.
In the construction of the S&P U.S. High
Yield Low Volatility Corporate
Bond Index, an individual bond's credit risk in a portfolio context is measured by its marginal contribution to risk (MCR), calculated as the product of its spread duration and the difference between the bond's option adjusted spread (OAS) and the spread - duration - adjusted portfolio average OAS (see Equation
Bond Index, an individual
bond's credit risk in a portfolio context is measured by its marginal contribution to risk (MCR), calculated as the product of its spread duration and the difference between the bond's option adjusted spread (OAS) and the spread - duration - adjusted portfolio average OAS (see Equation
bond's credit risk in a portfolio context is measured by its marginal contribution to risk (MCR), calculated as the
product of its spread duration and the difference between the
bond's option adjusted spread (OAS) and the spread - duration - adjusted portfolio average OAS (see Equation
bond's option adjusted spread (OAS) and the spread - duration - adjusted portfolio average OAS (see Equation 1).
While the High
Yield US Corporate
Bond ETF appears to be a slightly interesting unique
product for an investor looking into junk
bonds, it is hard to get excited about the rest of BMO's new ETFs — iShares CDN Short
Bond Index ETF (XSB) already provides exposure to short - term
bonds and Claymore has the sector ETFs covered.
Bonds and other fixed income
products tend to be classified by their maturity dates, as it is the most important variable in the
yield calculations.
A review of high -
yield debt investments should cover: (1) analysis of the industry, including growth rates, special risks and leading companies; (2) analysis of the
bond issuer, including the company's position in its industry; new
products; management stability; the outlook for growth in revenues and cash flow as captured in Earnings Before Interest, Taxes, Depreciation and Amortization, also called EBITDA; value of corporate assets and the debt maturity schedule; and (3) analysis of the issue, including special provisions in the «
bond indenture,» covenants protecting the bondholder, use of the money raised in
bond offerings, debt seniority, secondary market liquidity and call provisions.
As the
bonds on the ladder mature, reinvest into dividend ETFs and / or other income
products IF their
yields are sufficient.
In a recent blog, Pat Chiefalo, our head of iShares Canadian
Product, said this growing appeal for dividend stocks is the result of two trends: An aging population that is in greater need of generating income from their investments; and the persistence of historically low government
bond yields.
Mees also advises both issuers and underwriters on structured
products such as securitisations, covered
bonds and bespoke derivatives, with a particular focus on the insolvency aspects of these
products, as well as on high
yield and unsecured
bond issues.
It can also be the perfect fit for those looking maximize their ability to invest in other high -
yield, long term
products like stocks,
bonds, and real estate.
The panel has suggested to «lower the mandatory proportion of G - Secs» in the Life Fund and the Pension and General Annuity Funds and allow for higher exposure in alternative higher -
yielding assets (like equity or property) or high rated corporate
bonds» to help insurers generate a high gross return on investments so that insurance savings
products can compare favourably in the financial savings space.
Tags for this Online Resume: Consumer
Products, Income Statement, Securities,
Bonds, Mutual Funds, Automotive, Due Diligence, Balance, fixed income, credit, high
yield, investment grade, convertibles
Additionally, analysts expect
bond buyers of commercial real estate collateralized debt obligations (CDOs) to demand higher
yields for subordinated loan
products, which also will increase the cost of mezz.
As Salomon's Wheeler explains, even with some relative value investors jumping ship from CMBS to higher
yielding corporate
bonds, many of the tried and true CMBS investors are still flocking to the
product.
At the same time, the prospect of continued low interest rates means less favorable
yield on government
bonds and fixed income
products, making higher
yielding investments backed by commercial real estate all the more attractive.