And rising rates means higher yield in a zero-yield universe.
That is clearest in the bond market (those buying German two-year bonds on a yield of zero are assured of exactly that return) but it applies to shares as well.
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And, the press is full of articles on how to replace lost interest income in a zero yield world.
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Japanese bonds, the second largest bond market, has near zero yield.
The higher yield in the underlying assets of funds like EBND are of no help, because EBND is down 1.5% so far in September while the zero yield of the iShares 3-7y US Treasury Bond (IEI) fund is up 0.35% thanks to higher bond prices.
More remarkable than the amount of Japanese household financial assets is their structure: 60 percent are in essentially zero-yield bank deposits.
The zero-yield club includes new companies like Facebook as well as mature ones like AutoZone that disburse cash by buying in shares.
They argued, moreover, that a zero-yield, permanent nuclear test ban is manifestly not in the United States' national interest and noted that, given international support for such a treaty, needed changes to either of those key provisions would be unlikely to be accepted by other parties.
All else being equal, as a bond moves closer and closer to its maturity date, its yield moves closer and closer to zero.
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Much of this money creation is going into stock prices, since at near-zero interest rates bonds yield little and bank savings or money-market accounts almost nothing at all.
Considering that quantitative easing is effectively the same as an interest rate cut below a zero bound, the yield curve is very steep even with 10-year yields just below 2%.
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It is unnatural to have interest rates close to zero and to distort the yield curve by pegging longer-run bond prices at artificially high levels and suppressing yields.
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While the search for better investment returns goes on, however, it's important to step back occasionally to appreciate what makes possible a net yield to be fought for instead of a zero sum to be fought over.
Money market rates near zero and corporate bond buyers starving for yield make financing easier and cheaper than ever before.
Pegging the federal funds rate close to zero for another three years and twisting the yield curve to lower longer-term rates will continue to misprice credit, penalize saving, and encourage risk.
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And as yield-sensitive investments, MLPs are a no-brainer in a world of zero interest rates.
The balance of the displaced will continue to earn zero dollars, rather than however little the value of their labor might yield, given their willingness to perform it for that price.
Although the monthly dividends yield 11.2%, fully 28% of that is a return of your own capital, up from zero in January 2012.
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