iShares 20+ Year Treasury Bond

The near-zero interest rate environment has resulted in a low cost of debt, which has motivated more new debt issuances by utilities.

President-elect Donald Trump’s tax reforms could bring cheers from taxpayers, but the tax bracket changes may not be well received by muni bond investors.

After expressing his thoughts on the Baby Boomer generation’s having become risk-averse, Richard Bernstein moved on to the topic of the safety of “safe” investments.

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.

In this series, we’ll compare yields across various developed markets (EFA) (VEA). We’ll also look at how a steepening yield curve affects the financial sector (XLF).

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 […]

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

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.

The reason for low yields lies outside the United States. Global yields have been heading south over the last ten years.

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

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.”

Not only are European stocks cheaper than American ones, they also offer more attractive dividend yields.

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

The recent 5.5% year-over-year gain for home prices has put the FHFA House Price Index about 3% above its April 2007 level.

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.

Higher volatility calls for you to rethink your strategy. After being calm for most of 2014, both bonds (AGG)(BND) and stocks have experienced volatility this year.

Fannie Mae TBAs started the week at 104 15/32 and gave up 7/16 to close at 104 1/32. The ten-year bond yield increased by 7 basis points.

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.

There are no free lunches. The risks involved in fixed income investing are two-fold.

High yield bonds are becoming increasingly correlated with the S&P 500 and might increase your risk exposure instead of giving diversification benefits.

Job creation isn’t matching population growth. The population growth has been dipping over the last two decades. Currently, it’s 0.7% per year.

High yield bonds (HYG), which are usually issued by mid- and small-cap companies, are considered riskier than investment grade corporate bonds.

It’s indeed déjà vu as a fresh round of worry over Greek political instability engulfs the Eurozone (EZU).

Intelligent investors have an opportunity to earn profits and avoid losses, if they understand how the yield curve may move when the Fed acts.