Bond
yields increase as ratings decrease.
Investment grade bonds contain «AAA» to «BBB - «(or Aaa to Baa3 for Moody's rating scale) ratings and will usually see bond
yields increase as ratings decrease.
Dividend
yields increase as prices fall.
Investment grade bonds contain «AAA» to «BBB - «(or Aaa to Baa3 for Moody's rating scale) ratings and will usually see bond
yields increase as ratings decrease.
The yield increases as the dividend does.
Crop
yield increased as more wild visitors came to farms.
Dividends can help combat volatility — that's because dividend
yield increases as the market price of a stock falls, making the stock more attractive
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.
In the long run most analysts expect demand for potash to
increase,
as a growing global population looks to maximize
yields from its shrinking pool of arable farmland.
More favourable growing conditions this season should lead to a sharp
increase in the number of red and white grapes crushed, while regions such
as Swan and Manjimup should continue to see increasingly larger
yields over the next five years.
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.
U.S.
yields have risen in recent weeks with
increased inflation expectations due to the proposed polices of President - elect Donald Trump,
as well
as the belief that the Federal Reserve will also raise interest rates again this month.
French bond
yields widened their gap against German bunds on Tuesday morning
as opinion polls showed
increased uncertainty regarding who will become the next president of France.
In particular, «agricultural commodities are supported by the dynamics of water shortages in Asia and the Western United States, the declining payback from the green revolution in terms of improving crop
yields and the
increasing demand from Asia for a diet based more on grains and meat
as the population becomes wealthier,» the group responded by e-mail.
In all of the above cases the entrepreneur who is susceptible to the confirmation bias will look for information and analyze it in a way that will
yield: 1) fewer competitors rather than more, because it
increases the viability of the start - up, 2) underestimation of the capabilities of the competition because stronger competitors will make life harder for the entrepreneur, 3) view of the company's product
as fully addressing the needs of the customer because otherwise the start - up is at a weaker position in the marketplace, and 4) need for less resources rather than more because it generally makes raising the money easier.
In this regard, our surveillance has been closely monitoring for any signs of liquidity strains associated with the recent
increases in spreads for high -
yield corporate bonds,
as well
as for idiosyncratic events affecting particular funds in this segment, such
as the events surrounding the abrupt closing of Third Avenue Management's Focused Credit Fund last December.
They have also
increased the cost of new fixed - rate mortgages
as yields on the bond market have moved higher.
This
increase in bond ownership can push prices up, and further depress long - term
yields, which fall
as prices rise.
U.S. Treasury
yields also faced upward pressure ahead of Wednesday's quarterly refunding announcement that is expected to show more supply
as the government seeks to fund its massive tax cut program and
increased fiscal spending.
Technical factors such
as increasing U.S. Treasury bill issuance - the result of a surging budget deficit - are adding to the factors pulling short - term
yields higher and making the short end look more attractive.
However, when considered
as an alternative to classic equity financing, token sales
yield a > 100X
increase in the available base of buyers and a > 1000X improvement in the time to liquidity over traditional methods for startup finance.
Treasury
yields rise on Tuesday
as traders position themselves ahead of the conclusion of a two - day Federal Reserve meeting commencing Tuesday, that is expected to reveal an upbeat outlook for the economy and culminate in the sixth interest - rate
increase since December 2015.
Treasury
yields rose on Tuesday
as investors wait for the Federal Reserve to begin its April policy meeting, where a rate
increase is not expected.
Treasuries extended declines from October, pushing 10 - year
yields to a five - week high,
as the probability of a Federal Reserve interest - rate
increase by year - end hovered near 50 percent.
The Total Return approach used in our Global Equity Strategies emphasises the importance of dividend
yield and dividend growth
as well
as price
increases.
Also, bills have typically traded below other money market rates during tightening cycles,
as they do now; periods where bills trade at or above other rates have been the exception and not the rule.36 Thus, the smaller
increase in bill
yields than in rates on other term instruments is not surprising, and I do not read it
as undermining the general conclusion that the policy rate
increase was effective in firming money market conditions.37
All told, we see another coupon - driven year for high
yield with total returns of about 6 % possible
as spreads tighten in line with anticipated modest
increases in interest rates.
«If rates go up — and I don't think they will — then the
increase in
yields would hurt metals and mining company prices
as money left these assets and moved into fixed income.»
While a relatively small
increase, I'll take it
as BP's high starting
yield helps make up for it.
Deregulation also has
increased the economy's exposure to external shocks, such
as the widespread rises in bond
yields in 1994.
Western allies press Trump to maintain nuclear deal with Iran: Reuters US intelligence monitors Iranian cargo shipments into Syria: CNN A trade war is a major risk for China's debt - ridden economy: CNBC Federal judge orders gov» t must accept new DACA immigration applications: WaPo Unification of Koreas still unlikely
as leaders prepare to meet: Reuters US Consumer Confidence Index rebounded in April after March decline: CB New home sales in US
increased to 4 - month high in March: MarketWatch Richmond Fed Mfg Index turns negative for first time since 2016: Bond Buyer S&P Case - Shiller Home Price Index surged in Feb, up 6.3 % y - o - y: CNBC Federal Housing Finance Agency: US house prices continued to rise in Feb: HW Corp bonds with lowest investment - grade rating look vulnerable: Bloomberg 10 - year Treasury
yield reaches 3.0 % for first time since 2014: CNN Money
Precious and Industrial Metals Inflation concerns, geopolitical tensions and interest - rate levels, especially real
yields, contributed to a 1.7 % rise in the spot price of gold (to US$ 1,325 per troy ounce),
as did swings in the US dollar.1 Gold prices traded within the US$ 1,305 — 1,360 range throughout the period, reached 18 - month highs in March and capped their third straight quarterly gain, a feat not seen since 2011.1 Haven demand was a key support
as exchange - traded gold holdings of 2,269 metric tons (mt) neared a five - year high.1 The Fed is widely expected to boost borrowing costs, and investors have been carefully watching the central bank's statements to see whether it targets more rate
increases in 2018 than previously projected.
As you can see in the chart above, December's purchases resulted in a total
increase of $ 8.27 to my forward 12 - month dividends and carried an overall average
yield on cost of 2.18 %.
Shorter - term
yields in Canada are also forecast to
increase in 2014
as a strengthening in economic growth, tightening labour market conditions and accelerating wage growth fuel a steady, albeit slow,
increase in inflation.
Capital appreciation potential Companies issuing high
yield bonds have the potential to turn around their financial standing, creating the opportunity for investors to realize capital gains
as bond values
increase, due to improving business conditions or improved credit ratings.
Rates for home loans spiked along with a surge in Treasury
yields as Federal Reserve officials guided market expectations toward an interest rate
increase next week, mortgage provider Freddie Mac said Thursday.
Credit risk High
yield bonds are subject to credit risk, which
increases as the creditworthiness of the issuer falls.
What this means in practice is that we have kept maturities of our investments very short, particularly for low - risk issuers such
as governments and agencies, while we seek out opportunities to
increase portfolio
yield with what we think is well - priced corporate debt.
In addition, Prudential has regularly
increased its dividend over the past decade, and its current
yield of just over 3.4 % has been achieved despite paying out less than 20 % of its earnings
as dividends.
As its dividend keeps
increasing, IVZ
yield is relatively stable.
While insurance sector M&A has cooled off after a bumper 2015 due to what many players see
as over-inflated valuations, soft insurance markets,
increasing competition, higher claims and weak investment
yields are putting profitability under pressure, meaning that M&A remains a possible source of growth according to Credit Suisse.
In contrast to previous tightening episodes in the US, long - term
yields have remained stable and even declined
as the short - term rate has been
increased (Graph 19).
An
increase in rates will still decrease the price of high -
yield bonds but not
as much
as with other bonds because high -
yield bonds follow the economy more closely.
This is evident in a number of developments, including:
increased demand for higher - risk assets; the
increase in «carry trades» — a form of gearing where funds are borrowed short - term at low interest rates and invested in higher -
yielding assets, often in other countries; growth in alternative investment vehicles such
as hedge funds; and growth in alternative investment strategies such
as selling embedded options (see Box A).
BXMT's short - term floating rate assets benefit from rising short - term interest rates,
as their current
yields increase with these rates.
«Property demand is
increasing as new jobs are created and Philadelphia's population
increases, resulting in both capital growth and
increased rental
yields.»
Treasury
yields fell Wednesday afternoon after the most recent update on monetary policy from the Federal Reserve showed few signs that the central bank would ratchet up its pace of rate
increases, even
as the Fed conceded that the outlook for inflation had strengthened.
Privately held debt of the U.S. government
as a share of GDP
increased this cycle to 74 % from 39 % in 2008, prompting concern that the U.S. is doomed to a debt trap in which high debt and low
yields result in more debt.
In contrast, Treasury
yield volatility has recently headed lower — even
as five - year Treasury
yields have risen along with expectations of a March rate
increase.
Oil prices and the US
Yields to dictate the pace this week While geopolitical tensions remain bubbling under the surface, rising oil prices and higher US yields suggest investors are likely to deal with increased volatility as a broad range of political,... Rea
Yields to dictate the pace this week While geopolitical tensions remain bubbling under the surface, rising oil prices and higher US
yields suggest investors are likely to deal with increased volatility as a broad range of political,... Rea
yields suggest investors are likely to deal with
increased volatility
as a broad range of political,... Read more