Note that the Sears bond has a higher yield throughout the period, reflecting the fact a corporate bond trades at higher
yields than a government bond.
Corporate bonds usually offer higher
yields than government bonds or certificates of deposit, reflecting higher risk.
However, GICs have higher
yields than government bonds of the same maturity, with no additional risk.
Corporate bonds are popular income investing assets because they typically pay higher
yields than government securities, although they also carry correspondingly higher risk.
What's more, GICs pay higher
yields than government bonds: today you can build a five - year ladder with an average yield over 2 %, with no credit risk and no chance of a capital loss.
Not exact matches
U.S.
government debt
yields slipped after weak consumer spending data muted a better -
than - expected initial first - quarter read on economic growth.
Overseas, UK
government bond
yields spiked after higher -
than - expected inflation data.
The
yield on a 10 - year Canadian
government bond is just 1.7 %, compared to more
than 5 % a decade ago.
The British
government's attempt to crack down on offshore tax evasion is only
yielding # 349 million ($ 492 million) a year, rather
than the promised # 1 billion.
U.S.
government debt
yields slipped Friday after weak consumer spending data muted a better -
than - expected initial first - quarter read on economic growth.
Poland's 10 - year
government bond
yield rose 7 basis points to 3.14 percent, its highest level in four weeks, rising more
than U.S. and German
yields which it often tracks.
While credit risk might seem like a bad idea with the U.S. economy still weak and the rest of the world looking equally uncertain, high -
yield bonds do offer bigger returns
than government and investment - grade bonds.
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.
But the bank has taken more extreme measures, such as ramping up purchases to more
than 40 percent of the market overall and saying it would control the
yield curve by keeping the 10 - year
government bond
yield around 0 percent.
debt obligations of the U.S.
government that are issued at various intervals and with various maturities; revenue from these bonds is used to raise capital and / or refund outstanding debt; since Treasury securities are backed by the full faith and credit of the U.S.
government, they are generally considered to be free from credit risk and thus typically carry lower
yields than other securities; the interest paid by Treasuries is exempt from state and local tax, but is subject to federal taxes and may be subject to the federal Alternative Minimum Tax (AMT); U.S. Treasury securities include Treasury bills, Treasury notes, Treasury bonds, zero - coupon bonds, Treasury Inflation Protected Securities (TIPS), and Treasury Auctions
Treasury
yields retreat on Thursday by falling rates in European
government bonds after eurozone inflation data came in weaker
than expected.
European
government bond and U.S. 10 - year Treasury
yields are trading at their highest levels in more
than two months and the U.S. 30 - year Treasury bond
yield reached a high for the year on Tuesday.
The
yields and risks are generally higher
than those offered by
government and most municipal bonds, and the income is subject to state and federal taxes.
Typically, the market for high
yield bonds is less liquid
than the market for investment grade or
government bonds.
U.S. stocks plunged on Tuesday, with the Dow Jones Industrial Average sinking more
than 400 points as rising
government bond
yields drove investors into risk - off mode...
Treasury
yields fall after tepid eurozone inflation data spark German bund rally European
government bonds strengthened as inflation weakensTreasury
yields retreat on Thursday by falling rates in European
government bonds after eurozone inflation data came in weaker
than expected.
In recent months, the
yield on US corporate bonds, especially investment - grade securities, is a little more
than 100 basis points compared to the
yield on
government debt, dropping within striking distance of the lows seen post the 2008 financial crisis.
While spreads between
yields on highly - rated corporate bonds and
government bonds have remained above their historical averages, this continues to reflect strong demand for Commonwealth Government bonds rather than concerns about corporate credi
government bonds have remained above their historical averages, this continues to reflect strong demand for Commonwealth
Government bonds rather than concerns about corporate credi
Government bonds rather
than concerns about corporate credit quality.
5 year and 10 year
government bond
yields are lower
than my mortgage rate.
The cash
yield on the iShares CDN REIT Sector ETF (TSX: XRE) is approximately 5.45 %, a spread of less
than 2 % over the 10 - year
Government of Canada bond, which is currently
yielding 3.55 %.
Are gold and silver purchases more sensible
than investing in overpriced paper debts that guarantee a negative
yield in a devaluing currency issued by a dodgy
government or central bank?
The recent fall in corporate
yields has been a little less
than that in
government yields.
If you think about it, if you are long
government bonds that
yield less
than 1 % (or negative), you are massively short optionality.
It's also interesting to examine the changing significance and dynamics of the European bond market in general, which has almost doubled in size since 2005 to more
than $ 10 trillion today, including
government, investment - grade corporate debt and high
yield.
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.
More
than 70 % of the bonds in developed - market
government bond indexes today have
yields of 1 % or lower, as the chart below shows.
The alternative is a bunch of
government bonds that
yield nothing (or less
than nothing) and that will probably never be repaid.
Dividend stocks currently
yield more
than government bonds in major markets such as Canada and may remain a valuable source of income even as interest rates slowly begin to rise south of the border.
For more
than a week, the US dollar has risen sharply as US
government bond
yields have surged — with the benchmark 10 - Year Treasury
yield briefly...
With its leaning toward
government - backed issues, BND's
yield of 4.4 % is just slightly greater
than the 3.6 % being paid by the iShares Lehman 7 - 10 Year Treasury Index (NYSE: IEF).
This makes sense, since often times, high net worth individuals seek the safety and
yield of munis, and the market infers a slight spread above Treasuries since a municipality is more likely to default on a loan
than the US
government, which can always just print more money under the US Fiat currency model.
Just as well, since more
than a quarter of JPMorgan's Global
Government Bond Index, or $ 6.4 trillion worth of debt, was trading with a negative
yield last week.
The past several years have featured little more
than a gigantic asset swap, the short description being that massive volumes of
government debt have been swapped by central banks for massive volumes of idle bank reserves, while massive volumes of low -
yielding, covenant - lite debt have been issued into the hands of
yield - seeking investors, in order to retire massive volumes of corporate equities at elevated valuations through buybacks.
Indeed, with the US Federal Reserve finally beginning to hike interest rates and half of all European
government bonds of less
than five - year maturity paying negative
yields, it would appear to us that the rate cycle is bottoming.
That's in large part because dividend
yields have been considerably higher
than government bonds in most developed markets including Canada over this time.
This second trend borne from ultra-loose monetary policy has forced many investors to seek out higher -
yielding alternatives including dividend stocks, which, on average,
yield more
than 10 - year
government bonds in most major developed markets, including Canada (see chart below).
A High Nutritional
Yield: A study performed by the National Measurement Institute with the Australian
Government suggests that a juice extractor may retain more potassium, vitamin C and vitamin A
than a blender.
Vietnamese rice exports could soon increase as higher
than expected
yields allow the
government to lift its export restriction, according to an Asia Pulse report.
Less
than one - third of pension - fund assets typically are parked in safer, lower -
yielding government bonds and other fixed - income investments.
And reforms to the work and study tiers of the Points - Based System have been estimated by
government impact assessments to
yield reductions in net migration smaller
than required if they are to bear a proportionate share of a reduction in net migration large enough to meet the numerical goal.
However at 10.75 %, the
yield on the bond is still much higher
than government's initial target of 8.5 % and also higher
than the previous one which had coupon rates of 8 % and 8.5 % percent for its $ 2 billion bond issued.
An international community of conservationists, scientists and sociologists needs to join the concerned citizens and researchers of Nicaragua in demanding two things: first, independent assessments of the repercussions of this mega-project; and second, that the Nicaraguan
government halt the project should the assessments confirm fears that this canal will
yield more losses
than gains for the region's natural resources, indigenous communities and biodiversity.
Dividend stocks currently
yield more
than government bonds in major markets such as Canada and may remain a valuable source of income even as interest rates slowly begin to rise south of the border.
Partly because the starting point is very low, with bund
yields (German
government bonds) still less
than 1 %.
That's in large part because dividend
yields have been considerably higher
than government bonds in most developed markets including Canada over this time.