Sentences with phrase «yielding securities as»

Second, rising rates can actually work to the benefit of investors in individual bonds by allowing them to purchase higher - yielding securities as their current holdings mature.

Not exact matches

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.

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.

The longest portion of the offering, a 30 - year security, yields 1.95 percentage points above Treasuries, after initial talk of around 2.15 percentage points, according to people with knowledge of the matter, who asked not to be identified as the details are private.

In a sign of market interest, the longest portion of the offering, a 40 - year security may yield 1.45 percentage points above Treasuries, down from initial talk of 1.6 percentage points to 1.65 percentage points, said the person, who asked not to be identified as the deal is private.

«I've held the contention that as you see slower growth (the banks are) going to have to reposition your balance sheet into lower yield securities.

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.

The yield curve - the plot of all of the yields on Treasury securities of maturities from four weeks to 30 years - is used as a signal of economic health of the economy.

Fisher made its big withdrawal from the U.S. Deutsche Bank FI Enhanced Global High Yield ETN on Oct. 5 as Deutsche «faced a big penalty for allegedly misselling mortgage - backed securities in the U.S.,» the Journal says.

Many investors look to their bond portfolio as a source of income, and therefore favor higher yielding securities.

«The rollout of smart EMV cards is finally yielding positive results, as criminals are struggling to find workable solutions to bypass the implemented security controls.

Investing in high yield fixed income securities, otherwise known as «junk bonds», is considered speculative and involves greater risk of loss of principal and interest than investing in investment grade fixed income securities.

As yield - starved investors looked for relatively safe alternatives to low - yielding Treasury securities, they turned to mortgage securities, which had to - date never experienced major losses.

Wealth managers suggested reducing investment in government securities significantly, to 42.8 percent in November from 48.2 percent, while upgrading investment grade and high - yield allocations as they look for better returns.

The yield required for a low - risk bond such as a Treasury security will be lower than the yield required for a high - risk bond such as a junk bond.

It occurs gradually over time as funds» holdings mature and portfolio managers replace them with newer, higher - yielding securities.

As long as investors aren't too concerned about the risk of capital losses - that is, as long as investors are in a risk - seeking mood (Iron Law of Speculation), a mountain of zero - interest hot potatoes will also embolden investors to chase yield further out on the risk spectrum, for example, in junk debt, stocks and mortgage securitieAs long as investors aren't too concerned about the risk of capital losses - that is, as long as investors are in a risk - seeking mood (Iron Law of Speculation), a mountain of zero - interest hot potatoes will also embolden investors to chase yield further out on the risk spectrum, for example, in junk debt, stocks and mortgage securitieas investors aren't too concerned about the risk of capital losses - that is, as long as investors are in a risk - seeking mood (Iron Law of Speculation), a mountain of zero - interest hot potatoes will also embolden investors to chase yield further out on the risk spectrum, for example, in junk debt, stocks and mortgage securitieas long as investors are in a risk - seeking mood (Iron Law of Speculation), a mountain of zero - interest hot potatoes will also embolden investors to chase yield further out on the risk spectrum, for example, in junk debt, stocks and mortgage securitieas investors are in a risk - seeking mood (Iron Law of Speculation), a mountain of zero - interest hot potatoes will also embolden investors to chase yield further out on the risk spectrum, for example, in junk debt, stocks and mortgage securities.

In the second step, the model estimates the appropriate discount rate for the security, which in the case of RMBS is expressed as a trading margin — the difference between the yield on the RMBS and the Australian dollar swap rate for the tenor corresponding to the WAL of the RMBS.

Certainly, diversification may reduce some risk, but, if we learned anything from the mortgage crisis, we know that investing in lots of bad securities can yield the same results as investing in a few bad securities.

The Strategic Total Return Fund moved the bulk of its assets from short - term Treasury securities to Treasury inflation protected securities as real yields on these securities surged well over 3 %.

Securities are classified as high - yield if the middle rating of Moody's, Fitch, and S&P is Ba1 / BB + / BB = or below.

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.

Although inflation compensation, which has returned as an accurate measure of inflation expectations, plays a key role in the recent rise in longer - term rates, an earlier post illustrated that the primary reason for the longer decline in the 10 - Year Treasury note rate is the real, or inflation - adjusted, yield, as measured by the rate on 10 - Year Treasury Inflated Protected Securities.

If the ratio is at 100 %, it indicates that the yield on a AAA - rated municipal bond is the same as a Treasury security of the same maturity.

As we pointed out in our post last week, a withdrawal rate strategy should respond to market factors like equity valuations and bond yields as well as personal factors like age, retirement horizon, and expectations about pension and Social Security benefitAs we pointed out in our post last week, a withdrawal rate strategy should respond to market factors like equity valuations and bond yields as well as personal factors like age, retirement horizon, and expectations about pension and Social Security benefitas well as personal factors like age, retirement horizon, and expectations about pension and Social Security benefitas personal factors like age, retirement horizon, and expectations about pension and Social Security benefits.

As a Defined Maturity fund approaches its liquidation date, the fund's securities will mature and the fund may reinvest the proceeds in money market securities with lower yields than the securities previously held by the fund.

For example, in a world where short - term interest rates are zero, Wall Street acts as if a 2 % dividend yield on equities, or a 5 % junk bond yield is enough to make these securities appropriate even for investors with short horizons, not factoring in any compensation for risk or likely capital losses.

Inflation expectations, as measured by the difference between yields on 10 - year nominal Treasury notes and Treasury inflation protected securities (Tips), have risen to 2.25 per cent from a low of around 2.10 a month ago.

Short - term security yields in the money market moved down generally in line with the cash rate as policy was eased.

In February 2011, 5 year agency mortgage backed securities yielded around twice as much (around 4.0 %) than a 5 year US Treasury (around 2.0 %).

Preliminary meetings with investors have pitched the IPO as a bond - like security, paying a higher - than - average dividend yield.

While we support exposure to mortgage - backed securities (MBS) in portfolios today, some caution is warranted, as MBS may face some rising yields (and spreads) as the Fed reduces its balance sheet (along with term extension risk).

In addition, these funds must invest at least 50 % of their non-cash assets in income - generating securities such that the 3 - year weighted average yield on the equity component of the fund's portfolio is at least 1.5 times the average yield of the Canadian Equity Fund benchmark, defined as the S&P / TSX Equity Index.

We define intrinsic value as the amount that would accrue to the owners of a security if the underlying company were sold to a rational and well - informed buyer, or the company was liquidated with the proceeds distributed to security holders, or where the particular security sells at a price that would yield no better than a security considered ultra-safe, such as a US Treasury note or bond» Lou Simpson

Cristina Grandi, IFOAM Food Security Campaigner, presented a poster on the «Benefits of organic farming systems» examining environmental, economic and social aspects as well as data on soil health, water efficiency, biodiversity, energy efficiency, yields, profitability, nutrition and employment.

«While IRRI has historically helped India to meet its overall food security needs through the green revolution high - yielding rice varieties such as IR8, the challenge now is to deliver increased livelihoods for farmers through increasing the value of rice, and increasing the well - being of farmers and consumers through enhanced nutrition outcomes.

«Our investment in security yielded good dividends of peace and safety in February as security agencies, using the armoured personnel carriers our administration procured for them, foiled robbery attacks by armed bandits on banks in Ikirun.

«We know that the pressures of increasing food security will only get bigger as population and economic growth pressure the world's food system,» writes Foley, who is not involved in the work, «and understanding how and where yields can still improve is vital to improving food security.»

Synthetic biology may hold the key to increasing yields on currently farmed land — and hence helping address food security — by enhancing photosynthesis and reducing pre-harvest losses, as well as reducing post-harvest and post-consumer waste.

Think of it this way — if a bond is externally rated as BBB, and my firm's internal credit rating team deems it to be AA, then we are simultaneously purchasing the safety and security of a AA bond while also benefiting from the yield of a BBB bond.

High - yield bonds (also known as «junk bonds») may be subject to greater levels of interest rate, credit, and liquidity risk than investments in higher rated securities.

As a defined maturity fund approaches its liquidation date, the fund's securities will mature and the fund may reinvest the proceeds in money market securities with lower yields than the securities previously held by the fund.

The Sub-Advisor seeks to achieve the fund's investment objective by selecting a focused portfolio of high - yield debt securities (commonly referred to as junk bonds).

I think the reason I wrote it out 10 + years ago was my objection to interest only securities that received high ratings, despite the possibility of a negative book yield if prepayments accelerated, and they were rated AAA, and could be used as reserve assets with minimal capital charges.

One of the oldest tricks in the game is to offer a high current yield, where the yield can get curtailed through early prepayment (typically in low interest rate environments), or some negative event that forces the security to change its form, such as when a stock price falls with reverse convertibles.

By using risk - adjusted yield — computed as 12 - month trailing yield divided by the standard deviation of yield — the higher weight is placed on securities with more stable yields.

Julianne Bass, Assistant Vice President of Mutual Fund Portfolios, joined USAA in 1999 as a Senior Fixed Income Securities Analyst covering high - yield sSecurities Analyst covering high - yield securitiessecurities.

As the Federal Reserve is expected to «taper» its purchases of long - term Treasuries and mortgage - backed securities, and as economic growth picks up, long - term yields will gradually risAs the Federal Reserve is expected to «taper» its purchases of long - term Treasuries and mortgage - backed securities, and as economic growth picks up, long - term yields will gradually risas economic growth picks up, long - term yields will gradually rise.

Many people realize that rising interest rates affect yields and prices, but what others might not know is that if you stick closely to short - term, investment - grade debt securities - the very kind our Near - Term Tax Free Fund (NEARX) invests in - the impact of such a rate hike is not as dramatic as some investors might think.

«The risk is in securities that are hyper - sensitive to rising yields, such as most REITs and bonds.