Sentences with phrase «yields than government bonds»

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.

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.

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.

Not exact matches

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.

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 credigovernment bonds have remained above their historical averages, this continues to reflect strong demand for Commonwealth Government bonds rather than concerns about corporate crediGovernment 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 %.

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...

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.

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).

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

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.

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.

The last time I checked, they were more than a full 2 % over Government of Canada bond yields.

If one has bought a bond with few years left for maturity and if the yield to maturity (YTM) when the bond was bought was greater than risk free rate (government deposit rates), would it be ideal to...

Since the late 1990s, 10 - year Government of Canada bonds have yielded about 1 % more than five - year GICs on average.

I remember the early 1980s, when 10 - year government bonds yielded more than 16 %.

This meant that municipal bonds, which typically yield less than Treasuries before tax, began to offer yields higher or comparable to federal government debt on a pre-tax basis.

Income investors will appreciate that many such stocks generate higher yields than 10 - year government bonds, the reverse of historical norms.

Since high - yield bonds have far more credit risk than government bonds of the same maturity, investors should naturally expect higher returns.

As an example, Lamont points out that, early this year, five - year bonds issued by the big Canadian banks were yielding more than 6 % — more than four percentage points above Government of Canada bonds of equivalent term.

Corporate bonds are popular income investing assets because they typically pay higher yields than government securities, although they also carry correspondingly higher risk.

This is quite a different result than earlier this year, when European bond market bonds sold off in fear that a Fed rate hike would lead to a shift away from European government bond markets to the higher yields and high quality of the US government bond market.

The $ 102,000 investment in a four - year college yields a rate of return of 15.2 percent per year — more than double the average return over the last 60 years experienced in the stock market (6.8 percent), and more than five times the return to investments in corporate bonds (2.9 percent), gold (2.3 percent), long - term government bonds (2.2 percent), or housing (0.4 percent).

We have high yield dividend equities — this is unique to Rebalance IRA — that we use a proxy for a bond fund because interest rates are artificially manipulated by the government and kept artificially lower than they normally would have been if the market had set those rates by its own market forces.

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 %.