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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 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 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.

Is it time to reboot the yen carry trade? The Japanese currency is at historic highs, with most logic pointing toward depreciation. That makes the trade that involves borrowing cheaply in yen and investing elsewhere look interesting -- but volatility makes it perilous. Ultra-low interest rates in Japan led hedge funds and small investors alike to borrow heavily there and invest in higher-yielding securities elsewhere in the boom years before the 2008 crisis. Today, using this so-called carry trade, in theory an investor can borrow for next to nothing in yen and invest the money fairly safely for much higher returns, for example, in two-year Australian government bonds yielding around 4.75 percent. [ABSTRACT FROM PUBLISHER]

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 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 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 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 reports that lower interest rates further stall movement of the massive backlog of leveraged-buyout debt in the U.S. It states that the sharp decline of benchmark rate off from above 5% to above 3% forced banks to restructure new loan deals by offering investors a Libor floor. Under the guarantee, it says that investors will still receive a certain yield if Libor drops any further.

The article reports on the prospect of an interest-rate reduction in the U.S. Federal funds market. The Federal Reserve is anticipated to lower its federal-funds rate target amid signs of an economic slowdown. Lehman Brothers Treasury trading head Scott Gewirtz stated that investors are becoming more comfortable with the idea of a 0.25 point reduction. Gewirtz noted that a larger cut could widen the gap between the two-year and the 30-year yield by nearly 0.1 percentage point.

Assesses the investment markets looking for bargains. View that bargain stocks are bargains relative to other investment products; Comments from Tom McManus, a Banc of America Securities strategist, speculating as to why investors are willing to accept low rates of return; Relationship between low expectations and low interest rates; Speculation as to why the global economy has not responded to central-bank efforts to spur economic growth.

Discusses investments in bond funds. Reference to the investors who fled the bond market in 2004 because conventional wisdom held that an improving economy and rising interest rates would ding prices of existing bonds because they would yield less than newer bonds that pay higher rates; Fact that the Federal Reserve's rate increases were measured, and taxable bond funds posted an average total return of nearly 5% last year as treasury yields and prices stayed surprisingly steady; Reference to various types of bond funds that did well; Challenges of 2005 for investors considering what to do about bond funds.

Reports that real-estate investment trusts, or REITs, are ringing up impressive gains, but some experts fear the sectors foundation could soon show some cracks. REITs, which primarily invest in a portfolio of real-estate investment trusts that own properties in hotels, apartments or office buildings and pass rental income on to shareholders; Modest price tags and attractive yields from REIT, which averaged a whopping 17% annual gain over the past five years, compared with a nearly 2% annual loss for Standard & Poor's 500-stock index; REIT investors, women of whom are worried that rising interest rates may cause risk-averse investors to switch to fixed-income securities.

Reports that the Federal Reserve Board is poised to raise its benchmark rate by a quarter of a point to 1.25 percent, up from a 46-year low, and to continue the increases for months on end. Likelihood that rates will remain low, compared with almost any period expect the last few years; Creation of a new economic dynamic; Exposure of hidden problems by raising rates; Potential for investors to flee riskier investments in favor of safe ones that will now bring a higher return; Impact on adjustable rate mortgages and cash flow.