The realized yield of a bond should be calculated if an investor plans to hold a bond only for a certain period of time, rather than to maturity.
And an earnings yield a nice way of comparing a stock to a bond yield of more than 10%.
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Of course, second-lien debt is a niche product for issuers that require higher leverage than is usually available in the first-lien market, but that in many cases are locked out of the regular-way high-yield bond market because of size, credit quality, or complexity.
The average credit rating of a typical High Yield Corporate bond portfolio is higher than that of the Credit Suisse Leveraged Loan Index.
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Typically mutual funds is where we are looking at quite substantially right now for really one reason, and those tend to trend better with a lot less risk, so you know you can have market-like rate of return on high-yield-bond mutual funds with historically a third of the downside risk of the markets.
As default risk is the primary driver of high-yield corporate bond prices, as opposed to interest rate direction, when the economy expands, the risk of high-yield corporate bonds defaulting is reduced and this is reflected in lower volatility.
Normally, a ratio of bond yield to earnings yield of 1.0 is considered cheap.
Currently, we are using a 10-year Treasury bond yield of 6% as a discount rate.
Cost of carry on my bond portfolio of high yield paper is also minimal, but shows a net positive variance of over 500 basis points.
Only two years ago, at the beginning of 2011, one could buy a twenty year AA-rated municipal bond with a yield of 5.25 percent.
When you buy a corporate bond, you buy it at a price that gives you, over the life of the bond, an incremental yield over the yield on a Treasury of comparable maturity.
If rates remain unchanged in May 2012 the Bank of Oklahoma bond yield will be 1.09%.
In consequence pension funds and banks will no longer be able to give up some of their bond yield in return for insuring the capital against government default.
As its yield falls the value of the bond rises.
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Market players relay that investors are scaling back their bets on the high-yield bond market ahead of earnings season and alongside a fifth consecutive session of declines in the equity markets.
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At one time analysts liked to do this by quoting the yield gap (though this became inverted when dividend yields fell below bond yields in the 1950s) or the yield ratio, both of which relate share to bond yields.
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The chart of the SPDR Barclays Capital High Yield Bond ETF ( JNK) shows the drop through weekly support from the fall of 2010 (line e).
From a growth perspective, stocks and bonds are valued properly in relation to one another when the stock yield is sufficiently higher than the bond yield to compensate you for the risk of future earnings shortfalls.
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James Keenan, comanager of the BlackRock High Yield Bond fund, loves disarray in the markets.
This is a significant development at the yield on the bond is one of three major inputs to the www.
In recent months we have seen a record influx of money flowing into longer duration bond funds in the reckless pursuit of yield.
Sekerbank had hoped to be the latest Turkish lender to benefit from record-low borrowing costs by seeking to sell the bond at a yield of just above 5%.
The yield of the benchmark long-term bond hovers around 1.2%.
The low bond yield signals no fear of inflation, but the high gold price signals the opposite.
In the year to date, however, narrowing spread levels have helped high-yield bond returns narrowly exceed those of loans (see below).
One, the yield to the worst call date is much better than yield to maturity of a non-callable bond (aka, bullet bond).
Investors holding the once risk-free bonds of the U.S. and Europe are getting a combination of low yield and amazing volatility in bond prices.
He and the firm created almost out of whole cloth the high yield bond market that financed so many cutting-edge corporate entities in the 1970s and 1980s.
The two-year bond yield -- one of the maturities the central bank could target -- has plunged from a peak of more than 7 per cent last year to 2.59 per cent yesterday.
Another bull on high-yield bond funds is Jack Bowers of Fidelity Monitor, who is recommending Fidelity Strategic Income (nasdaq: FSICX - news - people ), which has 40% in high-yield debt, tempered by 60% in foreign and U.S. investment grade and government issues.
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