But for companies that do not have that kind of capital on hand, they will likely issue longer maturing debt, which is bad for corporate bond holders that are invested in shorter duration debt as demand will go towards the longer dated bonds yielding more interest.
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The Romneys paid tax because they hold stocks and securities yielding dividends and interest, and because they sold assets generating capital gains.
If central banks were now to build their reserve portfolios from scratch they would probably hold less in gold and more in interest-yielding assets.
In normal times the opportunity cost of holding non-yielding gold, instead of interest-bearing bank deposits or government bonds, is high.
This happens when a higher-yielding bond matures in a lower interest rate environment.
Last month, average interest rates on high yielding corporate debt stood at 8.84% compared to 1.9% for 10 year TSYs.
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Banks will be allowed to borrow from the Fed at near 0.0 percent interest and buy Treasury yielding 1.5 percent, thereby earning a risk-free return.
The new increase of 2.5 percentage points on Mr. Martin's line will effectively double the spread over the prime rate to 5%, yielding an 8.25% interest rate.
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His push comes as investors of all stripes have hungered for higher-yielding investments in a low-interest-rate environment and have pursued creative variations of financial products that can generate yield.
Series I Savings Bonds are currently yielding 1.76% and the interest rate is adjusted every six months for inflation.
Selling low-yielding bonds to pay off high-interest credit card debt should be the easiest investment decision you make all year.
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The greatest outperformance for the highest yielding stocks came during the periods when real interest rates were at their most negative.
The loans are high-interest rate, one variety of them yielding an unseemly 35.21%.
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It appears, according to the lawsuit, that Gillett entered into a high yielding term loan that carried a 19% annual interest rate.
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Instead, traders were pursuing higher-yielding assets more aggressively, after several years of low interest rates have left many market participants with paltry returns.
Over the past couple of years investors have borrowed yen at low interest rates and invested the proceeds in higher-yielding dollar assets.
For instance, you can put a smaller amount in a six-month CD, which will have a low interest rate, and larger amounts in higher-yielding nine-month and one-year CDs.
Despite the inflation risk, and the longer term likelihood of rising interest rates, Main Street investor exposure to low yielding bonds is likely to increase and become more concentrated, Dehn said.
Low interest rates reduce the opportunity cost of holding non-yielding assets such as gold.
There are broadly three issues: income, vulnerability to a rise in interest rates (which cuts the value of lower-yielding bonds) and exposure to erosion by inflation (which reduces the value of both income and capital).
Falling interest rates have helped to create new markets in high-yielding debt, such as junk bonds.
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Not a bad return when interest rates are flat and 10-year Treasury bills are yielding about 3.4%.
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Also supporting the surge of new issuance is demand among investors for higher-yielding assets to protect against price declines that could be caused by potential interest-rate rises.
Extremely low interest rates are enticing many investors to seek income in high-yielding stocks.
If interest rates increase, the investor will be stuck with an instrument yielding below market rates.
The weighted average interest rate offered slipped to 7.99 percent from a higher yielding 8.27 percent at the beginning of 2012.
Except for Mexico, the biggest ones have sold off, on what Gruber calls overblown fears about the impact of pending U.S. interest rate hikes, which could hurt the appeal of high-yielding Latin debt.
Quantitative easing and its low interest rate byproduct has increased the global carry-trade out of low yielding countries and into higher yielding ones.
"In India, the monsoon is another negative factor" in addition to high interest rates, which encourages investors to keep cash in relatively high-yielding savings accounts, Mr. Shaoul said.
Bonds that are yielding 7% to 9% strong returns amid today's low interest rates reflect very high default and delinquency expectations, and the actual outcome may not be as bad, he said.
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