In a low-yield environment, brokers have been selling anything that offers investors a higher yield.
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Some experts also argue that, in the current low-yield environment, an actively managed approach makes more sense than indexing for bond funds.
Hairier credits are also starting to emerge once again, as the low-yield environment has tempted such issuers to chance their arm and refinance.
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High-yield short duration bonds and senior bank loans (also known as leveraged loans) are both attractive for excess liquidity in the current low-yield environment.
Finally, realize that even in the current low interest rate environment, short-term, low-yield bonds offer the advantage of liquidity and little downside risk, allowing them to potentially play an important role in your portfolio.
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The moratorium was one of a series of unilateral disarmament actions taken at that time, which included the 1993-94 legislation prohibiting design of low-yield nuclear weapons and the 1995-96 agreement on a Comprehensive Test Ban Treaty (CTBT).
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His decision to ban all nuclear tests would preclude the U.S. from conducting even extremely low-yield tests (for example, those that produce as little of a blast as the equivalent of four pounds of high explosive) as part of the nuclear stockpile stewardship program.
Second, bonds offer return of capital when held until maturity. (Corporate bonds are not completely without risk, so be sure to monitor the fiscal health of the issuer.) Finally, bonds have historically had low correlations with stocks. (When stock prices zig, bond prices often zag.) Thus, even in the current low-yield environment, bonds should not be ignored.
The company said the 5.10 version will be a comprehensive discovery solution with more than 20 new big data analytic capabilities, including out-of-the-box-ready visual capabilities. (Also see my upcoming Tableau story for more on visualization) Insights from these analytics can empower organizations to be more profitable by improving detection of customer churn, fraud, and the root causes of low-yield in manufacturing processes.
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That's a nice way of saying that during recent years the Harvard Management Company, the university's investment subsidiary, diverted large portions of the university's endowment assets out of safe but poky low-yield securities (as of last June fixed-income investments accounted for only 16% of Harvard's portfolio) and into what this Forbes story describes as "exotic financial instruments": derivatives, hedge funds, private equity partnerships, commodities and emerging-market equities.
The yield on the two-year note fell to an all-time low while the 10-year note yield found its way back to April 2009 levels.
While it is true that Treasuries are holding near record-low yield levels, the second half of last year saw rates creep slowly higher.
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Investors who bought in mid-2008, when Alliance was trading at a five-year-low yield of 4%, have still made 72% through increases in share price and dividends.
Demand was strong despite a record-low auction yield of 1.622%.
Low-profile performance tires yield outstanding turn-in response, mid-corner grip, and road feel.
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However, if rates do indeed hold near record-low levels, investors in search of yield in the fixed-income market might benefit from taking a look at nontraditional credits as Holtz suggests.
The implicit hint is that inflation and fiscal stimulus can yield a low-quality growth that is unsustainable.
The market may sell as low as 10 times earnings for a while but when inflation is low and 10-year Treasuries yield approximately 4%, the market normally sells at a mid-teens price-earnings valuation.
It drives short-term interest rates lower allowing banks to borrow low on the short-term end of the yield curve, and lend high on the long end.
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When interest rates are low, as now, high-yield's superior returns tend to win the argument.
Borrowing costs continue to plunge as investors hunt for yield in a low-rate environment.
Cigarette stocks have become downright trendy of late as investors have taken to chasing yield in a low-interest-rate world.
With borrowing rates for high-yield issuers so low, it is not surprising to again see heavy activity geared toward refinancing existing debt.
The 30-Year bond record low yield was 2.508 set in December 2008.
However, the current environment (dominated by improving credit conditions and low expected default) makes high-yield bonds generally more attractive than many investors realize.
The all time low yield for the 30-Year bond is 2.349% set on May 26, 2012 and the recent high yield is 3.118% set on September 17, 2012.
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These metrics define the main backdrop for stocks being too cheap to ignore, and the extremely low yield for the 30-Year bond is the main reason for cheap equity valuations.
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The yield on the 30-Year bond declined to 2.955% from 3.091% last week, but the all time low yield for the 30-Year bond is 2.349% set on May 26, 2012.
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The all time low yield for the 30-Year bond is 2.349% set on May 26, 2012 and the recent high yield was 3.118% set on September 17 after QE3 was announced.
Also, the average yield of DAX stocks is 3.5%, almost three times the yield on the 10-year German government benchmark bond, a factor that could persuade yield-hungry investors deterred by low returns on government bonds to switch from debt to equity.
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