ProShares Investment Grade—Intr Rt Hdgd
According to Morgan Stanley, US high yield bonds (IGHG) (LQDH) generated a return of 14.4% in 2016.
Company & Industry Overviews
The January Effect is a rise in asset prices often (but not always) observed throughout the month of January. There are a number of theories as to why this happens.
Income and spending were up, while inflation numbers were restrained at the core level. Personal income rose by 0.4% in June, matching the pace of the month before and meeting consensus expectations.
The Committee thought that inflation would move back toward its 2% objective during the forecast period.
The $7 billion offering of sovereign securities drew attention from investors to gather enough bids to cover its sale by 2.76 times.
The speech took an interesting turn when Kocherlakota questioned his audience on they should care that inflation is too low.
Bullard went on to talk about the international economy from an alternate view. Under this view, most features characterizing the economy remain the same as under the traditional view—except one.
The preferred measure of core inflation in the United States by the Federal Reserve is changes in the core PCE price index.
Examining credit spreads gives investors an idea of how cheap (a wide credit spread) or expensive (a narrow credit spread) the market for a particular bond category or a particular bond is.
The Fed’s dual mandate is balancing inflation with unemployment—that is, achieving both maximum employment and price stability.