«Much like the laws of physics change from the world of Newtonian large objects to the world of quantum Einsteinian dynamics, so too might low interest rates at the zero - bound reorient previously held models that justified the stimulative effects of lower and lower
yields on asset prices and the real economy.»
Not exact matches
Treasury
prices cut earlier losses
on Monday, pushing
yields slightly lower, after stocks fell sharply, pushing investors into haven
assets like government bonds.
Mark Vaselkiv, portfolio manager at T. Rowe
Price, noted that «Einstein said there were three great forces of nature: gravity, electro magnetism, and compounded interest... high
yield is an
asset class that ultimately capitalizes
on the latter.
Efficient
pricing in fixed - interest markets depends, to a large extent,
on the existence of a well - defined
yield curve for an
asset of undoubted credit worthiness.
Korean leaders to meet at North - South border
on Friday: BBC Chinese geologists say N. Korea's main nuclear test site has likely collapsed: WaPo China air force intimidates Taiwan with military flights around island: Reuters Conservative Supreme Court justices appear to back Trump's travel ban: The Hill French president expects Trump will withdraw from Iranian nuclear deal: BBC Rising interest rates keep Wall Street
on edge: CBS Investors will focus
on various inflation numbers in days ahead: Bloomberg A closer look at the 10 - year Treasury
yield's rise to 3 %: Calafia Beach Pundit T. Rowe
Price's
assets under mgt top $ 1 trillion — a sign of active mgt growth: P&I World trade volume slumped 0.4 % in Feb, first monthly loss since Oct: CPB
The Fed's accommodative monetary policy after the recession helped goose stock
prices, in part by lowering
yields on safer
assets like Treasury bonds.
The index tracked by CEFL specifically targets those funds trading at a discount, with the idea that a cheaper market
price boosts
yield relative to the
yield on the fair value of
assets.
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.
One factor supporting the Australian dollar over the past couple of years has been that interest rates right across the
yield curve in Australia, and perceived returns
on other
assets, have been higher than those in a number of other countries, particularly those which experienced a recession and a collapse of share
prices in the early part of this decade.
Steve Johnson appears
on Sky Business discussing US 10 year bond
yields, that have risen above 3 % and the potential impact of this
on the economy and
asset prices.
Investing in commodities indices that are constructed using long or short positions in futures
on physical commodities whose value is determined based
on the
price of the underlying physical commodity plus
yield and that trade
on public markets that provide adequate liquidity and transparency, with negligible costs and no storage deterioration risk, offer a practical method to gaining commodities exposure and can provide a means for market participants to access the five components of the returns of the
asset class.
Strategic Total Return continues to carry a duration of about 3 years (meaning that a 100 basis point move in bond
yields would be expected to impact the Fund by about 3 %
on the basis of bond
price fluctuations), with about 10 % of
assets in precious metals shares, and a few percent of
assets in utility shares.
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.
Large index ETFs, which have real - time net
asset values (NAVs), have not helped this
pricing problem in fixed income but, in parts of the fixed income market where there is less liquidity (such as high
yield bonds), sourcing issues can be more difficult — particularly in a market sell - off where buyers may not be readily available with sufficient capacity to take
on bond inventory.
Steve Johnson appears
on Sky Business discussing US 10 year bond
yields, that have risen above 3 % and the potential impact of this
on the economy and
asset prices.
As such it is not surprising that bond
prices have fallen, which results in higher bond
yields, lifting returns for bond purchasers
on this very low risk
asset class.
Simply valuing the management fee stream from these
assets at a 15
price - to - earnings multiple, in line with other money managers, and placing a lower multiple
on its capital - markets unit,
yields $ 3.25 or so per share in value, fully taxed.
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.