Search

The article examines the potential losses for investors in high-yield or junk bond mutual funds should investors pull money out of stock markets in the event of an increase in interest rates. It discusses a report conducted by researchers at financial services firm Barclays that estimated a 12 percent loss in bond market funds if the junk-bond market declined by 10 percent and mutual fund investors requested a return of 20 percent of their funds. The article presents comments from Barclays head of research Jeffrey Meli.

The article states that several U.S. public pension funds were slashing investment-return predictions as of early September 2015 due to low interest rates and global market volatility. The article cites an analysis conducted by the group the National Association of State Retirement Administrators to state that over two-thirds of U.S. state retirement systems had cut assumptions since 2008, and that the average return target of 7.68 percent was the lowest since at least 1989. The article presents comments from pension consulting firm Cambridge Associates managing director Brian McDonnell.

The article discusses investors' decreased sales of junk bonds in the U.S. for the month of July 2014. Topics include the effect of junk bond sales on yields and U.S. bond issuance by lower-rated U.S. companies, speculation on an increase in interest rates in the U.S., and mention of the pricing of companies' bond sales such as Bonanza Creek Energy Inc.

The article discusses the performance of long-term junk bonds in the U.S. as of December 2013, reporting that prices and sale rates are decreasing as some investors seek shorter-term securities. Topics include the U.S. economy, interest rates, investment policies, bond yields, and bonds issued by the food-can maker Ball Corp.

The article discusses an increase in skyscraper prices that has been caused by investors seeking yield as of June 2013. Topics include skyscraper sales in the Manhattan neighborhood of New York City that have exceeded one billion dollars, interest rates, and the potential economic benefits of renting property.

The article discusses the potential economic impact in the U.S. of a bond selloff, noting the effects of ultralow yield bonds issued by U.S. central banks including the U.S. Federal Reserve on the economic recovery. It comments on the the possible losses that could be sustained by companies who invested in the bonds, the effects of reflation on financial borrowing, and the low interest rates.

The article discusses strong demand among investors for high-yielding investments. The U.S. Federal Reserve's policy of keeping interest rates low has made U.S. Treasury securities unattractive to yield-hungry investors. Some are turning to junk bonds, not all of which include the customary protections for investors. One-hundred-year bonds issued by Mexico have proven popular, despite that country's history of defaults.

This article reports that income investors in the U.S. have been investing in riskier assets as a result of five years of low interest rates. Topics include the potential negative backlash that could be suffered as a result of risky investments were the U.S. economy to enter a recession, the risks of buying stocks with the highest yields instead of stocks with healthy dividends, and the risks of buying closed-end mutual funds which rarely sell for the value of their assets.

The article examines the implications for finance in the U.S. of the announcement by the Federal Reserve Board that its main interest rate will remain close to zero until at least the middle of 2013. It is noted the central bank keeps rates low to encourage borrowing and lending by consumers and corporations. The possibility that the low rate of return on interest rate based investments will hurt the profits of banks, pension trusts and insurance companies is considered.

The article reports that the interest rate yield on the 10-year U.S. Treasury note government security fell below two percent in trading for the first time since the 1960s. The yield on the security is discussed as an indication that financiers are forecasting slow economic development which will lead to a low rate of return on most financial products.

The article reports that despite the efforts of the U.S. Federal Reserve Board to shore up liquidity and confidence in credit markets, investors remain reluctant to participate in the bond and loan markets. The interest rate spreads between bonds and other securities and U.S. Treasury bonds remain very high by historic standards, indicating investors are still seeking safety over possible returns.

The article presents an overview of the yield curve, which is a financial variable that is the difference between short term and long term interest on U.S. Treasury notes. A discussion of he impact the yield curve has on financial companies and especially banks, is presented. The 2007 performance of the yield curve and the impact it has had on banks worldwide, including Wachovia and Citibank, is discussed.

The author reports that banks are competing to offer checking accounts that pay higher yields to try to attract more of their customers' deposits. The new accounts may pay rates ranging from 2% to 3% or more for their biggest customers. Small-town banks and Internet banks are also raising rates. A listing of banks and their rates is given and some restrictions on the accounts are mentioned.

The article reports on the implications for small investors of a flattening yield curve when the gap between short-term and long-term interest rates narrows. Efforts by the Federal Reserve Board to ward off inflation by increasing short-term rates are bringing them within the range of long-term rates and they could eventually go higher. This could signal an economic slowdown and a decline in the stock market. Corporate bonds could also be negatively impacted. Those with bank stocks, high-yield bonds, or homes with a big adjustable rate mortgage could face difficulties.

The article reports on a major trend in global investment. There is an unprecedented amount of capital to be invested and owners are anxious for the best return they can get. World pension, insurance, and mutual funds have $46 trillion to invest and global central bank reserves have doubled to $4 trillion. Other measures of available capital have also increased. Investments are being made into risky assets, including emerging markets, real estate, commodity funds, fine arts, and private equity funds. Low short-term interest rates at world central banks are also having an impact on the amount of capital being invested, since leaving cash in a money market account would have little yield. The article considers the source of all this capital and suggests that there has been a global savings glut and that corporate profits are at record levels.

Reports that the yield on 10-year Treasury notes hit a 14-month low. Speculation about the impact of statements made by a Federal Reserve bank official regarding interest rates; Comments from Bill Kohli, a managing director at asset-management firm Putnam Investments, speculating that riskier investments will be more appealing if the Fed is done with raising interest rates; Comments from Richard Fisher, president of the Federal Reserve Bank of Dallas, indicating the Fed may not raise interest rates at the central bank's next meeting on June 29 and 30.

The article examines the economic implications of a small rise in interest rates in 2015, and considers related issues including inflation, investor sentiments, and Treasury yields in the U.S.

The article discusses U.S. real estate investment trusts (REITs), focusing on the total return of the health care REITs sector since January 2014, health care REITs whose shares are up, including Ventas Inc., and health care companies' sensitivity to interest rate increases.

The article presents several tables related to finance as of April 4, 2014 which include the interest rates in the U.S. and other various countries, the U.S. consumer price index, and the rates of return on mortgage loans in the secondary mortgage market.

Charts related to the U.S. credit market as of December 9, 2013 are presented including one on high yield, junk-rated bonds, one of annual interest rates paid to borrow or lend money in U.S. and international markets, and one that tracks bond benchmarks, such as return on investment.

The article reports on movements in the interest rates on certificates of deposit as of July 24, 2013.

The article reports on certificate of deposit interest rates as of September 19, 2012.

The article offers tips for bond investors on dealing with increasing interest rates as bond yields decline in the U.S. in 2010. Investors are advised to focus on short term bonds and look for assets that are less sensitive to interest rates and more sensitive to economic growth. They are also recommended to consider high-quality money market funds for the market does not put much premium on riskier assets. Other approaches discussed are concerned with high-yield bonds, dividend-paying stocks and commodities.

The article focuses on the factors that may impact the stability of U.S. Treasurys as of December 14, 2009. It is said that the reiteration of commitment of the Federal Reserve to retain low interest rates for an extended period could benefit the Treasurys. The 10-year yield has increased since the beginning of December and settled at 3.540% on December 11. It is emphasized that a potential turnaround in the labor markets and consumer spending predicted during the month could affect the Treasurys.

The article reports on the higher yields in U.S. Treasurys following an encouraging jobs report in November 2009. The government is said to sell more than 1 trillion dollars in debt for the year. It notes that the near-zero interest rates of the Federal Reserve (Fed) help in keeping the demand strong for government debt. The encouraging jobs report is said to be driven by the speculation that the Fed may tighten interest rates sooner than expected.

The article reports on the move of investors to invest into bond funds for a better return due to the low short-term interest rates. Data from the Investment Co. Institute showed that more than 200 billion U.S. dollars flowed into taxable bond funds while more than 400 billion dollars flowed out of money market funds between January and the end of September 2009. It also cites the impact of higher interest rates on longer-term funds.

The article reports that yield of 10-year Treasurys has increased by 1.20 percentage points since the start of 2009 while the Federal Reserve in the U.S. raises key rates. Investors are positive that there will be higher yields to come. On the other hand, Citigroup forecasts that government bonds from the U.S. and the euro-zone would also post yield increases.

The article reports on the increase in yields of five- and seven-year Treasury notes in the U.S. on November 6, 2009. It is said that yields of two- and three-year notes failed to increase due to near-zero interest rate imposed by the Federal Reserve. Yields of five-year notes rose at 2.302% while the seven-year ones surged by 3.015%. David Ader of CRT Capital Group LLC predicts that yields of middle range notes will further increase by 0.1% due to higher demand.

The article reports on the preparations being made by long-term investors in the U.S. for the eventual rise in Treasury yields and a decline in prices. Investors expect a rise in yields which they attribute to some issues including the sale of Treasurys the federal government bought to help maintain low rates and worries over possible interest rate increases.

The article deals with the drop in prices during a difficult auction of benchmark U.S. Treasury notes on June 10, 2009 as the government offered higher interest rates to attract bids. At the auction, there was no shortage of demand in spite of the difficult bargaining process. The benchmark 10-year Treasury note experienced a 3.97% increase in yield. The worst performer at the auction was the 30-year bond.

The authors offer a warning to governments on projecting bond yields. They question the validity of applying the law of supply and demand and interest rate and inflation expectations in which governments rely their yield projections. They stress that interest rate assumptions alone cannot determine yields. They say that arbitragers should have taken advantage of the price declines of government bonds to increase yields.

This article reveals the plan of Bank of England (BOE) to cut interest rates further and to start buying domestic government bonds to jump-start lending in a bid to pull the economy of Great Britain out of recession. Particular focus is given to the current interest rate of BOE. Andrew Popper of SG Hambros Bank says there is a possibility that gilts will outperform Treasurys and German bunds as yields continue its downward trend in 2009. There are doubts surrounding the effectiveness of quantitative easing in lowering private lending rates.

The article reports on the effect of U.S. Federal Reserve's (Fed) interest-rate cut on money funds as of December 16, 2008. It says that the Fed has reduced its target interest rate to between 0% and 0.25% and it is said that policy makers chose a range for the rate instead of pushing it all the way to zero in part because of concerns about how money-fund investors would react. According to the article, the Fed's move pushed the money-fund yields even lower, as the seven-day average yield dropped to 0.88% from 0.94%.

The article reports that some money-market funds that invest largely in Treasurys are not accepting new investors as low yields on government securities drag down their yields in the U.S. in December 2008. According to experts, the possibility of negative yields exists if the U.S. Federal Reserve moves to further reduce interest rates. Peter Crane of Crane Data LLC stated that some $750 billion can now be found in Treasury money-market funds.

The article reports on the developments in the money-market funds amid the initiatives of the U.S. government in 2008. The U.S. Federal Reserve has already purchased short-term loans under money funds worth $350 billion. Prime money funds now has $1.56 trillion in assets compared with $2 trillion in September 2008. The interest rate cut of the federal agency also affected money-market returns as it now offers a yield of $1.95 from the previous 5%. Most financial firms are offering fee reductions to attract investor returns.

The article presents an update on credit markets as of November 2008. The yield spread between the two- and 10-year notes of U.S. Treasurys have widened to 2.40 percentage points from 2.34 after some European central banks have cut interest rates. Meanwhile, the spread in Germany and England have also widened by 0.02 and 0.07 percentage points, respectively.

The article reports on the increase in the demand for short-dated government securities after the U.S. Federal Reserve reduced its key interest rate to 1%. The Treasury bills and the two-year notes benefited the most with the yield dropping below 1.5%. The annualized returns on three-month bills closed at 0.609% while the two-year Treasury notes improved by 4/32 to earn 1.58%. However, the ten-year bond declined 15/32 to profit 3.88%.

The article reports on the challenge brought to money-market fund managers by the decreasing yields due to the interest-rate cuts of the U.S. Federal Reserve. Accordingly, the spreading financial crisis has made official rates fell 3.75 percentage points to 1.5% in the past 13 months as of October 2008. It says that the toughest challenge is faced by the money funds investing only in Treasurys as their net yields have dropped below 1%.

The article reports on an indicative yield set by People's Bank of China (PBOC) on the one-year bills it sold in its open-market operation in October 2008. It reports that the central bank is attempting to stabilize market rates following data indicating that economic growth fell to its lowest level in the third quarter of 2008. In a short statement, PBOC said it sold 50 billion yuan worth of one-year bills at 3.5090% and 50 billion yuan worth of 91-day repurchase agreements (repos) at 3.10% in open market operation.

The article discusses the growing gap between the yields of investment-grade corporate bonds issued by financial firms and U.S. Treasury bonds. Merrill Lynch reports that the gap has reached a magnitude not seen in decades. Such spreads indicate concern on the part of investors about the viability of some financial institutions amid tough credit conditions.

The article discusses concerns about corporate profits and the strength of consumer spending as reflected by corporate bond prices. The rate of return required by investors on corporate debt has risen. Spreads between junk bonds and U.S. Treasury securities have increased. A survey by Moody's Investor Service among gas distributors found growing numbers of homeowners having difficulty paying their gas bills.

The article reports on the performance of the U.S. treasury market on August 8, 2008. A drop on oil price boosted stock prices and pushed down short-term treasury yields. Average yield on ten-year treasury bond reached 3.95 percent, compared to 3.937 percent in the previous day. The yield was down by 4/32 point, or 1.25 percent for every $1,000 in investments.

The article reports that yields on U.S. certificates of deposit (CD) are on rise. As of August 2008, a number of U.S. banks are offering deposit rates above national averages. CD are becoming more appealing to investors as their yields exceed those of Treasury notes'. National average yields for one-year and five-year CD are 3.6 and 4.16 percent, respectively, compared with 2.3 and 3.3 percent for treasury notes of similar durations.

The article reports on the losses posted by mortgage bonds guaranteed by Fannie Mae and Freddie Mac on July 18, 2008, attributed to higher interest rates. It cites that risk premiums increased by 0.04 to 0.08 percentage point, pushing the bonds' average yield to more than 2.40 percentage points. It notes that Fannie Mae and Freddie Mac are expected to use excess capital to support their capital positions, rather than add to their mortgage-bond holdings.

The article reports on the increase in price of two-year Treasury notes in the U.S. on June 25, 2008 after the Federal Reserve decided not to lower the interest rates. The two-year note rose by 3/32 point or $0.9375 for every $1,000 invested and yielded 2.835%. The benchmark of 10-year note fell by 2/32 point to yiled 4.115%. The improvement came after government bond prices were dragged down by talks about inflation.

The article reports on the bond prices at the U.S. Treasurys market. On June 16, 2008, prices on these instruments reportedly increased slightly. Data on benchmark for 10-year and 30-year bonds are offered. Investors reportedly expressed doubts that the Federal Reserve will raise interest rates in the face of low economic growth and uncertain consumer confidence.

The article reports on the decline in prices of short-term Treasury notes on June 9, 2008 in the U.S. due to concerns that the rising inflation could lead to higher interest rates. The decline also reduced the yield curve of the Treasury. The most affected were the two- and five-year notes. The concerns arose after the U.S. and euro-zone officials said that they will increase the interest rates due to the rising global inflation.

The article reports on the challenges being faced by investors on low yields in conservative investments after several reductions in interest-rate in the U.S. in 2008. Investors put their money on such investment fund due to decreasing value of the stock market and credit problems earlier this year. It explains the implication of benchmark interest rate reduction by Federal Reserve in September 2007 for investors. Greg McBride, senior financial analyst at Bankrate.com, cited junk bonds as one investment that may be attractive for investors.

The article report on the decision of the U.S. Treasury bond market to take a break until earnings improve. The move came after the country experienced a recession in the first half of 2008 and the cuts in the interest rate made by the Federal Reserve. Carl Lantz of Credit Suisse says that the company will not issue such bonds until stocks break lower. On April 11, 2008, the 10-year Treasury note was yielding 3.471%.

The article reports that the larger U.S. Federal Housing Administration (FHA)-insured mortgage loans may have higher interest rates than the estimate of around 0.375 percentage point. Mahesh Swaminathan, mortgage strategist at Credit Suisse, said that investors will ask higher yields on the new type of loans because bigger mortgages are more subject to refinancing when rates dip. Moreover, larger loans are also being introduced by Fannie Mae and Freddie Mac under temporary authority from the U.S. Congress.