Securities

ECB chief Mario Draghi had nothing to say about either tapering or extension of the bond buying program.

Retracting monetary accommodation on time is crucial as well. This was the chief reason why three dissents took place in the September FOMC.

When we talk about the relationship between the US dollar and bonds and how currency movements impact bonds, we’re essentially talking about international bonds.

The yield on US ten-year Treasury securities fell below the 1.6% mark for the first time on September 26, 2016 due to a rise in demand.

According to Bloomberg, Treasury Inflation-Protected Securities (or TIPS) have generated a year-to-date return of 6.3% compared to 4.7% by the broad Treasury market.

The Fed’s Shifting Stance on Rates The summer doldrums came late this year for gold and gold stocks. Now that the U.K. Brexit decision is old news, the markets are again obsessed with the Federal Reserve’s (the “Fed”) shifting stance on rate decisions. Although the Fed’s tone had been dovish on rate increases following the […]

The UK has taken over other countries as the most sought-after bond market destination, especially after the Brexit vote.

Moving on to the fixed income space, the Janus team sees holding duration in portfolios as a risk.

In this series, we’ll look at the Janus Asset Allocation team’s views on inflation, policy measures, and asset allocation (ITOT) (NEAR), given its assertion that inflation pressures are building.

Microsoft (MSFT) issued Aaa/AAA rated high-grade bonds worth $19.8 billion through seven parts on August 1, 2016.

Lately, mortgage rates and bond yields have shown a weak correlation. Treasury yields have fallen in the past month, while mortgage rates have been steady.

By investing in commercial real estate, Annaly Capital is increasing its returns. At the same time, it’s taking on credit risk.

Home prices in the Pacific and Mountain states have outperformed prices in the rest of the country over the past two years.

Between Jan 2014 and September 2015, the break-even rate was higher than the CPI inflation rate, as markets were surprised by the sudden dip in oil (USO) prices.

The break-even rate is the difference between the yields of ten-year Treasuries (IEF) (TLH) and ten-year TIPS (VTIP).

Housing starts and building permits came in around 1.2 million—towards the top end of a narrow range over the past year.

During the 1999–2002 dot-com bubble crisis, the US 2-Year Treasury yield fell by 74%. It made a high of 6.9% in May 2000 and a low of 1.8% in September 2002.

In his July 2016 Insights newsletter, Richard Bernstein stated, “Safe investments are safe until everyone wants them.”

Historically, investment-grade and high-yield municipal bonds (MUB) have a very low correlation with most other asset classes.

Generally, municipal bonds (SUB) are immune to market volatility, thus providing considerable support to a portfolio.

Yields remain at unattractive levels. This has caused yield-thirsty investors to flock to high-dividend-yielding stocks, driving their valuations higher.

Over the years, average returns from municipal bonds (CMF) are in line with the broader index. They outperformed in some years and underperformed in others.

Municipal bonds (MUB) have provided an excellent return in the past year. The returns are even better if we account for their tax benefits.

In the 1990s and 2000s, when gold prices tracked inflation, although the correlation seems to be a bit weak compared to the 1970s and 1980s.

Since the start of 2015, the S&P 500 and real yields have had a high negative correlation. Falling real yields have encouraged investors to take more risk in search of higher returns.

In his investment outlook for June 2016, Bill Gross asserted that “carry” is compressed in nearly every form. It has more risk than return.

In his latest monthly investment outlook for June 2016, bond market veteran Bill Gross talked about “carry” in financial markets.

In his monthly investment outlook for June 2016, Bill Gross outlined that money managers who have decades of experience witnessed a “magnificent era.”

Interest rates are a key performance driver for life insurance companies, affecting their margins, hedging costs, and product sales.

Asset managers have warned that costs may rise. They recommend inflation-linked securities such as Treasury inflation-protected securities (or TIPS).

A population of 80 million strong in the U.S., millennials – those born between 1980 and 1999 – are breaking with tradition.

The ten-year Treasury (IEF) yield has plunged in recent weeks. It dipped from 2.3% at the start of this year to ~1.6% currently, in a risk-off trade.

Labor productivity is an important tool to measure the strength of a country’s economy. Policymakers often use this indicator to compare output efficiency during a particular period.

Interest rates are a key performance driver for life insurance companies. They affect their margins, hedging costs, and product sales.

Treasuries (TLO) add ballast to a stock-centric portfolio while providing low yields.

Credit markets tend to improve when the economy is improving. The possibility of a default on corporate bonds (LQD) drops, thus causing their yields to fall.

Adding bonds across credit classes helps diversify your bond portfolio. The weight of each category depends on your risk appetite and the business cycle.

With interest rates likely to go up by the end of the year, TIPS with shorter maturities look more attractive.

Yields on TIPS remain close to 0%, making them unattractive for some. However, considering that inflation rates could go up and remain there, these securities look attractive.

Gold is used as an investment alternative because investors perceive it as a way to protect money’s purchasing power.