Sentences with phrase «yielding safe assets»

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.

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.

Not exact matches

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

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

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.

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

For the most part, investors cite the market's four - year climb off its 2009 lows and the Dow's record closing to the Federal Reserve's aggressive and unprecedented monetary stimulus measures, which have helped push equities higher by driving down yields in safe - haven assets.

They will also test the theory of whether reducing yields across safe haven assets like government bonds incentivize banks to lend more.

The Fed's accommodative monetary policy after the recession helped goose stock prices, in part by lowering yields on safer assets like Treasury bonds.

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.

We believe that equity exposure has become a key central - bank policy instrument to suppress currency - exchange rates and to grope for yield that they can not achieve in traditional safe assets.

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.

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.

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 in the last few episodes of sharp stock market drops, bonds went up (US government bonds are a safe haven asset and appreciate in crisis periods) so the only thing better than 3 months worth of expenses in a money market fund is having 3 + x months worth of expenses in the bond portfolio due to higher bond yields and negative correlation between bonds and stocks.

An asset class that once boasted a yield of 10 % now pays about 4 % — a huge move for a safe, low volatility investment.

This month's feature highlights my favorite place to find safe, oversized yields: «Forever Assets.»

He defines this ERP as the retrospective difference in 10 - year yield between the broad U.S. stock market and the 10 - year yield on safe assets such as U.S. Treasury bills or intermediate - term U.S. Treasury notes.

Less than one - third of pension - fund assets typically are parked in safer, lower - yielding government bonds and other fixed - income investments.

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.

As such, investors in the income arena are increasingly shifting funds from safer bets like Treasuries and Money Markets into higher risk assets that actually delivery meaningful yield.

They will also test the theory of whether reducing yields across safe haven assets like government bonds incentivize banks to lend more.

Once they started QE the Fed pushed the private sector to take risk because of a lack of safe assets with decent yield.

So a suddenly single individual may want to boost dramatically the percentage of his or her assets in safe, albeit low - yielding, accounts.

Low yields on perceived safe assets have led many to embrace more credit risk.

The yield on the two - year Treasury dropped 0.28 percentage points, the most since 2008, signalling investors were driving prices up as they rushed to buy the safe - haven asset (bond yields and prices move inverse to each other.

So, its distribution yield of ~ 6.6 % should remain safe despite the asset sales.

Sometimes, you want to purchase shares with a company that could result in significant yields if the company ends up being successful instead of going with the safer government bond (or other safe assets) route.

Why not replace it with equally safe and liquid assets that offered considerably more yield, like bonds backed by AAA - rated subprime or Alt - A mortgage collateral?

Commodities, Stocks Weaken as Traders Seek Safety Commodity and stock markets are trading lower overnight as risk aversion is driving investors toward safer, lower - yielding assets.

Stocks Feel Pressure as Demand for Risky Assets Falters U.S. equity markets closed lower on Tuesday as investors dumped higher yielding stocks in favor of safe - haven aAssets Falters U.S. equity markets closed lower on Tuesday as investors dumped higher yielding stocks in favor of safe - haven assetsassets.

Investors Seek Safety in U.S. Dollar after Weak Housing Report The U.S. Dollar is trading higher at the mid-session as weak U.S. housing data is encouraging investors to dump higher yielding assets and seek safety in the Greenback.This morning, stock market losses are clearly triggering the rapid return to the Dollar as a safe - haven investment.

This, coupled with indications that the ECB might increase its QE program in March, could be setting the stage for continued negative yields with positive performance in this «safe» asset class.

If your break - even rate was 16.67 % as in our example, and you diversify half of your portfolio into «safer» assets such as bonds yielding 2 %, that means the other half of your portfolio has to generate a crazy impossible return year after year in a compounding manner just to break even, not to build any wealth!

«A company with a high yield does not translate to a good company, nor a safe investment,» says Craig Jerusalim, portfolio manager of Canadian equities at CIBC Global Asset Management.

The fund also balances riskier REIT assets including office and retail exposure with high - yielding, safe REITs in specialized industries like health care and utilities.

We graded stocks based on yield (how much they pay out), reliability (how safe is the payout), and value (lots of assets at a low price).

Rather, I think people who live on fixed - income assets like CDs and bonds are shifting to the safest kind of equities (utilities) driving up the price and thus driving down the yield.

We see a similar willingness to pay excessively high valuations for «safe», income producing assets in the behavior of the 10 - year treasury yield with the yield falling from 5 % in 2007 to 3 % in 2013 to just 1.5 % today.

By and large, net lease properties are magnets for HNW investors because they're viewed as safe, recession - proof assets that preserve cash flow and yield.

With interest rates at rock - bottom levels, safe yet high - yielding assets remain scarce.

That yield is usually driven by several factors, including broader economic conditions and investor demand for safe assets such as Treasurys.

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.