You can make profits by borrowing in low - yielding currencies like the dollar and euro and investing in high -
yielding debt in emerging markets.
The chart below shows the volume of proceeds and number of new issues of global high
yield debt in recent quarters (source: Thomson Reuters).
High -
yield debt in both the US and international bond ETFs also got a boost after yield - seeking investors moved longer on the yield curve and into riskier debt securities to achieve better returns on their investment capital.
Not exact matches
The decision by the Reserve Bank of India came close on the heels of weak investor interest
in two recent auctions that led to a spike
in sovereign
debt yields.
The decision by the Reserve Bank of India, announced late on Friday, came close on the heels of weak investor interest
in two recent auctions that led to a spike
in sovereign
debt yields.
The bonds of iHeartMedia have long been
in the basket of «distressed
debt,» meaning their prices have fallen so far to where their
yields are at least 10 percentage points higher than equivalent Treasury
yields.
In the short - term, however, this increased leverage may actually be bullish for junk bonds, corporate bonds, emerging market
debt and mortgage - backed securities as it brings higher prices and lower
yields, he said.
The sell off
in the market for high
yield debt, or junk bonds, is now hitting a type of structured bond that is similar to the the type that blew up
in the financial crisis.
Although there may not be a bond bubble, with investors starved for
yield, Gundlach predicts a potential bubble could form
in credit risk as investors increase their leverage on riskier
debt securities like junk bonds and emerging market
debt.
Second, while it makes sense that an environment
in which investments, like government
debt, are
yielding a smaller return might cause people to spend less today
in order to make their retirement goals, there just isn't a lot of evidence that this happens
in the real world.
Energy companies have made up a good portion of
debt issued
in the high
yield market over the past few years.
Standard and Poor's estimates the federal government's partial paralysis cost $ 24 billion, and consultancy IHS Global Insights said on Wednesday that the spike
in short - term interest
yields witnessed
in the week of Oct. 14 alone will add $ 114 million to the federal
debt.
In other words, the combination of a reach for
yield, tax incentives, and the belief that default is impossible all contributed to a
debt crisis that is likely not going to end well.
The sharp jump
in debt yields in tandem was mirrored by a rally
in commodity prices, which suggests that investors are becoming less worried about the risks of deflation.
Citi analyst Paul Lejuez says the company will likely need to cut its dividend — it currently
yields 5.85 % —
in order to pare down that
debt.
That's also making Austrian bond
yields spike, ushering
in a new phase of the sovereign
debt crisis from the East.
In case of a serious default, one in which the U.S. postpones or suspends any debt payments, «Canadian yields could actually drop as a result of both the economic slowdown and safe - haven flows,» Shenfeld wrote in a recent research not
In case of a serious default, one
in which the U.S. postpones or suspends any debt payments, «Canadian yields could actually drop as a result of both the economic slowdown and safe - haven flows,» Shenfeld wrote in a recent research not
in which the U.S. postpones or suspends any
debt payments, «Canadian
yields could actually drop as a result of both the economic slowdown and safe - haven flows,» Shenfeld wrote
in a recent research not
in a recent research note.
Orange Capital makes investments
in value equity, high -
yield and distressed
debt, and secured loans, according to the fund's brochure document.
«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.
Lewis, fund's chief investment officer, spent nine years at Citigroup as a director of the bank's global special situations group, a $ 5 billion prop - trading group that specialized
in distressed
debt, high -
yield bonds, and value equity.
Perth - based mining contractor Barminco has refinanced its existing
debts through an issue of high -
yield notes
in the United States.
Previously, Erdoes worked at Bankers Trust
in corporate finance, merchant banking and high -
yield debt underwriting.
Yields in the $ 14 trillion market for U.S. government
debt touched record lows
in 2016, driven by years of aggressive central bank intervention
in the wake of the 2008 - 2009 financial crisis to keep interest rates low to stimulate the economy.
«And just one example might be 18 percent of the high -
yield debt issued
in the last year is energy.
Watsa,
in subsequent interviews, denied he couldn't find partners, saying Fairfax decided it wasn't wise to saddle BlackBerry with high -
yield debt after completing due diligence.
But cross-country differences
in equity returns declined to pre-crisis levels while the range of
yields on
debt securities issued by banks and by non-financial corporations also narrowed, suggesting that there is some integration at least
in prices of financial instruments.
In the Doug Purvis Memorial Lecture, Governor Stephen S. Poloz shows how changing the mix of monetary and fiscal policies can
yield the same outcomes for growth and inflation, but lead to different results for public sector and private sector
debt levels, which can impact financial stability.
A rapid rise
in short - term
yields in U.S. government
debt is restoring their appeal.
yields will hit the highs on close end of the day... equity markets setting up to be slammed tomorrow maybe but today they have run over weak shorts
in the face of rates... the federal reserve see's this and again will wonder if they are behind on hikes, strong data, major expansion
in credit, lack of wage growth rising bond
yields and ballooning
debt... rates will go much higher and equities will have revelations as to what that means for valuations
Treasury prices rise, pushing
yields lower, on Monday after solid appetite for two batches of government
debt auctions see strong bidding, ahead of what's set to be a deluge of sales of government
debt in 2018.
And
in fact, the Fed could theoretically control the entire
yield curve of US government
debt if it merely targeted a rate.
MF Global's stock price declined two - thirds
in the final week of October 2011 and its credit rating was reduced making its
debt high -
yield debt following huge quarterly losses.
«Taking small steps, such as making sure savings are
in high -
yield accounts, renegotiating monthly bills and using a cash - back credit card can free up cash that can be put toward
debt payments until they are paid off
in full,» she says.
Roughly $ 10 trillion worth of global government
debt,
in fact, now carry low to subzero
yields.
Authors Linda Goldberg and Deborah Leonard examine how the news contained
in economic announcements — the unanticipated information that can move markets — influences sovereign
debt yields.
Yields on U.S. government bonds are already some of the highest
in the sovereign
debt markets and are attractive to non-U.S. buyers on an absolute and relative basis.
While at Credit Lyonnais, Mr. Fink helped develop the institution's High
Yield Department and specialized in investing in high yield subordinate
Yield Department and specialized
in investing
in high
yield subordinate
yield subordinate
debt.
Our Real Estate professionals are seasoned experts
in sourcing, analyzing, structuring and monetizing real estate investments
in distressed
debt, high -
yielding senior loans, direct equity and hybrid investments, among others.
The Bank of Spain estimated the gross return on Spanish residential investment at 4.2 percent
in 2017, almost triple the cumulative
yield on 10 - year government
debt.
Emerging - market companies have piled on
debt in recent years, allured by low interest rates from
yield - starved investors.
Based on BlackRock's long - term assumptions, some of the better return - to - risk ratios are
in high
yield bonds, EM dollar - denominated
debt and bank loans.
At some point, if these policies are inflationary, then the vigilantes or those that hold dollar reserves, such as China and Brazil and Mexico, they will be
in the driver's seat
in terms of longer - term Treasury
debt, 10 years and 30 years Treasury
debt in terms of their
yield.
Against this environment, our strategists remain bullish on equities and continue to favor emerging market currencies and,
in the fixed income space, prefer local markets over external
debt and maintain their higher -
yielding yet better - quality bias.
In fact, investors seeking safety bought even more of the downgraded U.S.
debt, pushing prices on 10 - year U.S. Treasuries to within a fraction of face value and
yields to an all - time low of 2.13 %.
This leads to a frightening conclusion: that both lower quality and lower
yields of such «previously sacrosanct
debt represent a potential breaking point
in our now 40 - year - old global monetary system.»
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.
The fund invests primarily
in investment grade
debt securities, but may invest up to 10 % of its total assets
in high
yield securities rated B or higher by Moody's.
Our Global Market Strategies segment, established
in 1999 with our first high
yield fund, advises a group of 46 active funds that pursue investment opportunities across various types of credit, equities and alternative instruments, including bank loans, high
yield debt, structured credit products, distressed
debt, corporate mezzanine, energy mezzanine opportunities and long / short high - grade and high -
yield credit instruments, emerging markets equities, and (with regards to certain macroeconomic strategies) currencies, commodities and interest rate products and their derivatives.
We invest
in countries around the world at all levels of the capital structure — from
debt (first lien bank
debt, second lien loans and high
yield bonds) to undervalued equity.
And
in the face of record valuations and record
debt, we're seeing rising interest rates (the
yield on the 10 - year Treasury hit 3 % last week for the first time since 2014) and other signs of inflation like rising oil and copper prices.