May 28 -- Franklin Templeton Fixed Income Group Senior Vice President Eric Takaha discusses the bond markets. He speaks on “Market Makers.” -- Subscribe to Bloomberg on YouTube: http://www.youtube.com/Bloomberg Bloomberg Television offers extensive coverage and analysis of international business news and stories of global importance. It is available in more than 310 million households worldwide and reaches the most affluent and influential viewers in terms of household income, asset value and education levels. With production hubs in London, New York and Hong Kong, the network provides 24-hour continuous coverage of the people, companies and ideas that move the markets.
Views: 4336 Bloomberg
The current low interest rate environment means that bond investors have to take more risk in order to gain an attractive return on their invested money. The current low interest rates also present a risk that if interest rates and inflation rise in the future, then bond prices may fall and portfolios could suffer losses.
Views: 8304 hubbis
In this revision video we work through some numerical examples of the inverse relationship between the market price of fixed-interest government bonds and the yields on those bonds. Government bonds are fixed interest securities. This means that a bond pays a fixed annual interest – this is known as the coupon The coupon (paid in £s, $s, Euros etc.) is fixed but the yield on a bond will vary The yield is effectively the interest rate on a bond. The yield will vary inversely with the market price of a bond 1.When bond prices are rising, the yield will fall 2.When bond prices are falling, the yield will rise - - - - - - - - - MORE ABOUT TUTOR2U ECONOMICS: Visit tutor2u Economics for thousands of free study notes, videos, quizzes and more: https://www.tutor2u.net/economics A Level Economics Revision Flashcards: https://www.tutor2u.net/economics/store/selections/alevel-economics-revision-flashcards A Level Economics Example Top Grade Essays: https://www.tutor2u.net/economics/store/selections/exemplar-essays-for-a-level-economics
Views: 59456 tutor2u
What do I do? Full-time independent stock market analyst and researcher: https://sven-carlin-research-platform.teachable.com/p/stock-market-research-platform Check the comparative stock list table on my Stock market research platform under curriculum preview! I am also a book author: Modern Value Investing book: https://amzn.to/2lvfH3t More about me and some written reports at the Sven Carlin blog: https://svencarlin.com Stock market for modern value investors Facebook Group: https://www.facebook.com/groups/modernvalueinvesting/ Most say that a good portfolio is 60% stocks and 40% bonds and then to add on the bonds part as you age. I fully disagree because bonds are about to be a terrible investment in the future. Remember that bonds were called certificates of confiscation back in the 1970 due to constantly rising interest rates and inflation. As interest rates are at all time lows it might happen again. I also discuss high yield bonds or junk bonds and the risk of investing in bond ETFs. When bond yields go up, bond prices go down, it is as simple as that. Where will yields and interest rates go from now on?
Views: 3666 Invest with Sven Carlin, Ph.D.
Shawna Millman, Vice President and Director, TD Asset Management, shares her analysis on the high yield bond market and the impact of rising rates.
Views: 1264 TD
In this episode of common sense investing I will tell you why you should think twice about owning high yield bonds. Alternative investments are a broad category, so I have split this topic up into multiple parts. In Part One, I will tell you why high yield bonds don’t quite yield enough to justify their risks. My name is Ben Felix of PWL Capital and this is Common Sense Investing. I’ll be talking about a lot more common sense investing topics in this series, so subscribe and click the bell for updates. I want these videos to help you to make smarter investment decisions, so feel free to send me any topics that you would like me to cover. ------------------ Visit PWL Capital: https://goo.gl/uPcXg7 Follow PWL Capital on: - Twitter: https://twitter.com/PWLCapital - Facebook: https://www.facebook.com/PWLCapital - LinkedIN: https://www.linkedin.com/company-beta/105673/ Follow Ben Felix on - Twitter: https://twitter.com/benjaminwfelix - LinkedIn: https://www.linkedin.com/in/benjaminwfelix/ ------------------ Video channel management, content strategy & production by Truly Inc. - Website: http://trulyinc.com - Twitter: https://twitter.com/trulyinc
Views: 9032 Ben Felix
When is "junk" valuable? When there's high yield to be had, of course. Paddy Hirsch explains this potentially riskier, potentially more rewarding end of the bond market, which has famously backed many of the biggest leveraged buyouts and aggressive M&A deals ever undertaken. For more news, analysis, and trends on the high yield bond market check out http://www.highyieldbond.com, a free site powered by S&P Capital IQ/LCD to promote the asset class. You can also check out http://www.leveragedloan.com for news and analysis on that market, and LCD's Leveraged Loan Market Primer/Almanac, a free guide detailing quarterly market and historical trends, as well as market mechanics. http://http://www.leveragedloan.com/primer/ Follow LCD Twitter http://www.twitter.com/lcdnews Facebook https://www.facebook.com/lcdcomps LinkedIn https://www.linkedin.com/grp/home?gid=2092432 Follow Paddy Hirsch http://www.twitter.com/paddyhirsch
Views: 13279 LCDcomps
Help us make better videos: http://www.informedtrades.com/donate Trade stocks and bonds with Scottrade, the broker Simit uses: http://bit.ly/scottrade-IT (see our review: http://bit.ly/scottrade-IT2) KEY POINTS 1. Bond prices and bond yields move in opposite directions. When bond prices go up, that means yields are going down; when bond prices go down, this means yields are going up. Mathematically, this is because yield is equal to: annual coupon payments/price paid for bond A decrease in price is thus a decrease in the denominator of the equation, which in turn results in a larger number. 2. Conceptually, the reason for why a decrease in bond price results in an increase bond yields can be understood through an example. a. Suppose a corporation issues a bond to a bondholder for $100, and with a promise of $5 in coupon payments per year. This bond thus has a yield of 5%. ($5/$100 = 5%) b. Suppose the same corporation then issues additional bonds, also for $100 but this time promising $6 in coupon payments for year -- and thus yielding 6%. No rational investor would choose the old bond; instead, they would all purchase the new bond, because it yielded more and was at the same price. As a result, if a holder of the old bonds needed to sell them, he/she would need to do so at a lower price. For instance, if holder of the old bonds was willing to sell it at $83.33, than any prospective buyer would get a bond that earned $5 in coupon payments on an $83.33 payment -- effectively an annual yield of 6% (5/83.33). The yield to maturity could be even higher, since the bond would give the bondholder $100 upon reaching maturity. 3. The longer the duration of the bonds, the more sensitivity there is to interest rate moves. For instance, if interest rates rise in year 3 of a 30 year bond (meaning there are 27 years left until maturity) the price of the bond would fall more than if interest rates rise in year 3 of a 5 year bond. This is because an interest in interest rates reduces the relative appeal of existing coupon payments, and the more coupon payments that are remaining, the more interest rate fluctuations will impact the price of the bond. 4. Lastly, a small note on jargon: when investors or commentators say, "bonds are up," (or down) they are referring to bond prices. "Bonds are up" thus means bond prices are up and yields are down; conversely, "bonds are down" means bond prices are down and yields are up.
Views: 66836 InformedTrades
► Subscribe to FT.com here: http://bit.ly/2r8RJzM The FT's capital markets correspondent Robert Smith and Fraser Lundie of Hermes discuss how the risk profile of the high-yield bond market has changed substantially over recent years and what challenges it faces going forward. ► Subscribe to the Financial Times on YouTube: http://bit.ly/FTimeSubs For more video content from the Financial Times, visit http://www.FT.com/video Twitter https://twitter.com/ftvideo Facebook https://www.facebook.com/financialtimes
Views: 3333 Financial Times
We ended 2018 with a cautious outlook on the bond market. Our biggest concern was that the Federal Reserve’s series of interest rate hikes would reduce demand for bonds, especially bonds in the riskier segments of the market like high-yield bonds; but recently the Federal Reserve has indicated that they’re unlikely to raise interest rates again in the near-term. Does that mean we should throw caution to the wind? Kathy Jones takes a look on this episode of Bond Market Today. Subscribe to our channel: https://www.youtube.com/charlesschwab Click here for more insights: http://www.schwab.com/insights/ (0219-95X1)
Views: 8410 Charles Schwab
Buying stocks or ETFS that produce ever growing dividends is one of my favorite ways to create passive income. The best investors in the world built wealth buying fairly valued, quality stocks & holding them forever & watching the dividends explode! Today we are changing it up & looking at 3 High Yield Bond Funds. Are they safe? Is it worth the risk? Do they provide long term income? iShares U.S. High Yield Bond Index (HYG) PIMCO 0-5 Year High Yield Corporate Bond Index (HYS) Vanguard High-Yield Corporate Fund Investor Shares (VWEHX) SING UP TO M1FINANCE TO BUY & SELL STOCKS & ETFS https://mbsy.co/smLQh MY FAVORITE BOOKS ON INVESTING The Intelligent Investor: The Definitive Book on Value Investing: https://amzn.to/2W6HCrs MONEY Master the Game: 7 Simple Steps to Financial Freedom https://amzn.to/2WbpvRb The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns: https://amzn.to/2Tauobc Audible – Audiobooks & Originals for Android: https://amzn.to/2UTNC5I DISCLAIMER: It's important to note that I am not a financial adviser and you should do your own research when picking stocks to invest in. These are just some of my viewpoints, by no means would I recommend watching one YouTube video and then immediately buying that stock. This video was made for educational and entertainment purposes only. Consult your financial adviser.
Views: 114 Money Games
2018 Vanguard Long-Term Bond Fund ETF's With High Yields! Which Vanguard Bond fund should invest in? Learn about the best Vanguard dividend funds (Index Fund ETF's) Find out about the 4 top performing Vanguard Bond ETF funds available through Vanguard. The spreadsheet in the video can be downloaded here: Dropbox link: https://www.dropbox.com/s/ky22y2y0lt8ru0a/Top%204%20performing%20Vanguard%20bond%20funds%202018.xlsx?dl=0 or http://moneyandlifetv.com/downloads Video Outline and Time Stamps so you can quickly jump to any topic: • Vanguard Extended Duration Treasury ETF (EDV) - 1:22 • Vanguard Long-Term Bond Fund ETF (BLV) - 5:25 • Vanguard Long-Term Corporate Bond Fund ETF (VCLT) - 7:34 • Vanguard Tax Exempt Bond Fund ETF (VTEB) - 9:05 • Vanguard bond fund etf comparison - 11:38 • Bond Fund Pros and Cons (Bond Risks, etc) - 12:10 In this very detailed review you will learn about the four Vanguard Long-Term Bond Funds Etfs (Index Funds) available to invest in. The four Vanguard Long-Term Bond Funds 1.Vanguard Extended Duration Treasury ETF (EDV) 2. Vanguard Long-Term Bond Fund ETF (BLV) 3. Vanguard Long-Term Corporate Bond Fund ETF (VCLT) 4. Vanguard Tax Exempt Bond Fund ETF (VTEB) Check out some of our other videos and playlists here: ♦ Investing in the stock market!: https://goo.gl/yVAoES ♦ Save money, budget, build wealth and improve your financial position at any age: https://goo.gl/E97nJj ♦ Learn more about how federal income taxes work: https://goo.gl/D1hCX1 ♦ Ways to improve your life at any age: https://goo.gl/uq72bu Subscribe for our future weekly videos. New videos typically every Sunday or Wednesday. Do not forget to help out a friend and share this information with them as well. About me: I'm passionate about helping people build wealth by learning more about personal finances, investing and taxes. My mission is to help people improve their financial position career and life. I also enjoy teaching others about the accounting profession, tech tips, and helping people overcome challenges in their everyday life as well as their career. You can find our content on other internet planets such as....... My Website: Moneyandlifetv.com Twitter: https://twitter.com/Mkchip123 Facebook: https://www.facebook.com/moneyandlifetv/ ***Disclaimer*** All of the information in this video is presented for educational purposes only and should not be taken as financial, tax, or investing advice by any means. I am not a financial adviser. Although I am a CPA I cannot advise someone for tax purposes without knowing their complete tax situation. You should always do your own research before implementing new ideas or strategies. If you are unsure of what to do you should consider consulting with a financial adviser or tax accountant such as an Enrolled Agent, or Certified Public Accountant in the area in which you live. Thanks for taking time to check out this video, and our channel. Have a great day and we will see you in the next video!
Views: 6906 Money and Life TV
The high-yield bond market has rallied again in recent months after a selloff that drove yields to their highest levels since 2011. The market was hit hard in 2015 and early 2016 by worries about slowing global growth and the collapse of energy priceswhich slammed the bonds of many oil and gas companies. Lately, growth fears have eased and oil prices have recouped some of their losses. But many investors remain concerned about other potential threats to high-yield, including credit tightening by the Federal Reserve, prolonged weakness in emerging-market economies and the rising tide of corporate debt maturing between 2018 and 2022. Are central bank policies, including negative interest rates in Europe, supportive or hazardous for high-yield? Which industries offer the best value prospects for investors now? On this panel, leaders in high-yield and leveraged finance will share their outlooks and strategies. Moderator Tom Braithwaite, Lex Writer, Financial Times Speakers Christopher Boyle, Managing Director and Portfolio Manager, Guggenheim Partners Peter Budko, Partner, AR Global Henry Chyung, Chief Investment Officer, Post Advisory Group Robert Kricheff, Global Strategist and High-Yield Portfolio Manager, Shenkman Capital Andrew Whittaker, Vice Chairman, Jefferies; Vice Chairman, Leucadia National Corp.
Views: 5410 Milken Institute
James Cheo, senior investment strategist at Bank of Singapore, weighs in on U.S. 10-year treasury yield hitting record highs.
Views: 303 CNBC International TV
For Test Series Video Lecture :- https://www.youtube.com/playlist?list=PLgmKmhaUzHqT5L-KjdlGAtqeJQ9f4zy6y For Modern History Video Lecture :- https://www.youtube.com/playlist?list=PLgmKmhaUzHqTMfiHIyrS4hNIoY80BbpVY For Medieval History Video Lecture :- https://www.youtube.com/playlist?list=PLgmKmhaUzHqSVuEqDrw2Tm_61LXntPFHz For Ancient History Video Lecture :- https://www.youtube.com/playlist?list=PLgmKmhaUzHqRYfvCItya4kmQTVwjTj4_5 For full History Quick Revision Video Lecture :- https://www.youtube.com/playlist?list=PLgmKmhaUzHqSnyVotUO6V0YnrOEZXbG2n For Full Hindi Video Lecture :- https://www.youtube.com/playlist?list=PLgmKmhaUzHqQz2heKPuWUCmKfSSYWrElq For Hindi Practice Video Lecture :- https://www.youtube.com/playlist?list=PLgmKmhaUzHqSStd3jjli6DB0EP4_nWOeJ For Indian Constitution Video Lecture :- https://www.youtube.com/playlist?list=PLgmKmhaUzHqRd8_4hteO_0Qv6YADFVBEp For Biology Video Lecture :- https://www.youtube.com/playlist?list=PLgmKmhaUzHqSNGqingw_wwfoKBNHI6NTo For Economics Video Lecture :- https://www.youtube.com/playlist?list=PLgmKmhaUzHqToWlv4-rxny0Tzh1uvuV8W For Geography NCERT Video Lecture :- https://www.youtube.com/playlist?list=PLgmKmhaUzHqRjW9pWw2EIJDfrUnijYUHL For History NCERT Video Lecture :- https://www.youtube.com/playlist?list=PLgmKmhaUzHqR24C5nxjzOh9-5Q77dPrgd For Static GK Video Lecture :- https://www.youtube.com/playlist?list=PLgmKmhaUzHqSaC0ju4FM0P_Fc5B5_Lv3M
Views: 23391 STUDY 91
Fixed Income High Yield Money Market, CD and Short Term Bonds. Many investors and non investors want to park their money and get the best interest rate and yield. Subscribe to our channel https://youtu.be/Ye2ijkO6LQ4 😃 👍 Thank you for a Thumbs Up Who are we? The Wisdom Investor is all about providing valuable information and education to help you accumulate a nest egg for retirement. People of all ages can benefit from our videos. We want to help you build your financial wealth. You can build your financial wealth by saving, investing and managing your expenses. In addition we cover topics like Social Security, debt, housing, expenses, withdrawing money, health care, tax strategies, exercise and where to live. Website http://www.wisdominvestor.com Planning for Retirement http://www.wisdominvestor.com/weekly.htm Investing ETF Funds http://www.wisdominvestor.com/market.htm Contact [email protected] These People Will Not Get Social Security https://youtu.be/_7V6Xzqum0o 50 Years old and No Money for Retirement https://youtu.be/TL2AOm-qAmM How Much Income with 400,000 Savings? https://youtu.be/bezM82g_ltk $300,000 by 65 How Much Income Will I Have in Retirement? https://youtu.be/LH0ekQDn4o8 $400,000 At 55 Years Old and Retire Early https://youtu.be/jdttmBH9mLA Should I Take Social Security at 62? https://youtu.be/AYiMziBnBis Financial Independence in 12 Years https://youtu.be/C1__3PTRAGA Build a Stream of Income https://youtu.be/Vi_kgQ9NvfQ How to Have More Money https://youtu.be/Vi_kgQ9NvfQ How Much Social Security If I Make $50,000 https://youtu.be/vDtInklwmfM How Much Money to Save For Retirement https://youtu.be/ZOgkLUyZ5kI Will My Income Last During Retirement? https://youtu.be/tIFA_y20Kko Dividend Investing with Stocks and ETF's https://youtu.be/JVOD7zli8uI Expenses During Retirement https://youtu.be/UuYPrW2t39I How to Get Out of Credit Card Debt https://youtu.be/OnL1-lVmMZQ Should I pay off my mortgage? https://youtu.be/vzmPKj2gE_I When to Buy Stocks https://youtu.be/yg09pAwcadU Technical Indicators for Buy Signal - https://youtu.be/9JVokot0-SA
Views: 1025 Wisdom Investor
Senior Portfolio Manager Mark Durbiano provides his insight on how rising rates will impact high-yield bonds. Views as of 7-29-2015. For disclosure, visit http://bit.ly/FederatedYouTube. For more information, visit http://www.federatedinvestors.com.
Views: 3447 FederatedInvestors
Since the start of 2013, investors have poured nearly $9 billion into high-yield exchange traded funds. Gershon Distenfeld, director of high yield at AllianceBernstein, said it is clear that they should have opted for actively managed funds instead. 'The numbers tell the whole story. You don’t have to give fancy arguments. These things have been around for almost a decade and they have well underperformed the average active manager,' said Distenfeld. According to Distenfeld’s numbers, since the start of 2008, shortly after their inception, the two largest ETFs— HYG and JNK—delivered annualized returns of 6.2% and 6%, respectively, well short of the 8.3% annualized return for the Barclays US Corporate High-Yield Index. He adds that the top 20% of active high-yield mangers, as rated by Lipper, have also comfortably outperformed these two ETFs and have done it with lower volatility, as measured by risk-adjusted returns, and are not really much cheaper than active funds. 'The management fees are slightly lower. They are not the few basis points you find in the equity world. They are 40 and 50 basis point fees, but again, the numbers tell the whole story. Over eight years they have underperformed a high yield index by about 200 basis points and some of the top-tier managers by 300 or 400 basis points.' Subscribe to TheStreetTV on YouTube: http://t.st/TheStreetTV For more content from TheStreet visit: http://thestreet.com Check out all our videos: http://youtube.com/user/TheStreetTV Follow TheStreet on Twitter: http://twitter.com/thestreet Like TheStreet on Facebook: http://facebook.com/TheStreet Follow TheStreet on LinkedIn: http://linkedin.com/company/theStreet Follow TheStreet on Google+: http://plus.google.com/+TheStreet
Views: 1209 TheStreet: Investing Strategies
After a prolonged bond bull market, and in the face of rising interest rates, investors are searching for ways to generate income and shield against interest rate-driven price volatility. Watch Eric Gold, Senior Portfolio Manager, address key investor questions about US high yield markets and how the Fund aims to deliver income and provide a buffer in the face of rising rates.
Views: 210 CANDRIAM
Bond markets can be one of the first places to look for signs of trouble. In this short video I introduce and explain a key warning indicator – the yield spread.
Views: 7509 Killik & Co
Do High Yield bonds belong in your Roth IRA? Well, if you've been following the channel you know how I feel about bonds. Not a fan. But High Yield bonds are different. They pay more. Well, there is a reason they pay more.... they are riskier. In fact, look at 2007-2009 many high yield funds were down over 40%. In this video I am going to share with you why I think if you are going to take the risk to invest in high yield bonds, you may as well just go into stocks. Stocks have performed well ahead of high yield bonds, with a similar risk. Risk being defined as price swings of the portfolio. In fact, I will show you exactly how bonds work too, in terms of your returns. One thing you have to understand is there is NO capital appreciation in bonds. None. If you get capital appreciation today, it means capital depreciation MUST happen. It's pure, basic mathematics. Watch as I show you exactly what I mean. https://www.morningstar.com/funds/xnas/vwehx/quote.html https://investor.vanguard.com/mutual-funds/profile/performance/vwehx/cumulative-returns https://finance.yahoo.com/quote/VWEHX/performance?p=VWEHX ================================= If you like what you see, a thumbs up helps A LOT. It tells YouTube that people are engaged and so the Youtube algorithm will show the vide to others who may be interested in the content. So, give me a thumbs up, please! Don't forget to SUBSCRIBE by clicking here: https://www.youtube.com/channel/UCSEzy4i9xrKPoaU9z0_XbmA?sub_confirmation=1 Contact me: [email protected] GET MY BOOKS: Both are FREE to Kindle Unlimited Subscribers! The Tax Bomb In Your Retirement Accounts: How The Roth IRA Can Help You Avoid It https://amzn.to/2LHwQpt Strategic Money Planning: 8 Easy Ways To Put Your House In Order https://amzn.to/2wKGi50 GET ALL MY LATEST BLOGPOSTS: http://heritagewealthplanning.com/blog/ PODCAST: https://itunes.apple.com/us/podcast/josh-scandlen-podcast/id1368065459?mt=2 http://heritagewealthplanning.com/category/podcasts/ LET'S SOCIALIZE! Facebook: http://Facebook.com/heritagewealthplanning Linkedin: https://www.linkedin.com/in/joshscandlen/ Quora: https://www.quora.com/profile/Josh-Scandlen Google +: https://plus.google.com/u/1/108893802372783791910
Views: 583 Heritage Wealth Planning
Oct. 21 (Bloomberg) -- Billionaire Carl Icahn explains why he think the high-yield market is in a bubble. He speaks with Bloomberg's Stephanie Ruhle at the Robin Hood Investors Conference. (Source: Bloomberg) -- Subscribe to Bloomberg on YouTube: http://www.youtube.com/Bloomberg Bloomberg Television offers extensive coverage and analysis of international business news and stories of global importance. It is available in more than 310 million households worldwide and reaches the most affluent and influential viewers in terms of household income, asset value and education levels. With production hubs in London, New York and Hong Kong, the network provides 24-hour continuous coverage of the people, companies and ideas that move the markets.
Views: 12311 Bloomberg
A lot of frustrated investors are turning to junk bonds to generate extra cash flow. Compared to government bonds, junk bonds yield a juicy interest rate. But with the extra interest comes risk. Jill Schlesinger reports.
Views: 579 CBS News
Find out more about exchange-traded funds with us at the https://www.fidelity.com/learning-center/investment-products/etf/overview To see more videos from Fidelity Investments, subscribe to: https://www.youtube.com/fidelityinvestments Facebook: https://www.facebook.com/fidelityinvestments Twitter: https://www.twitter.com/fidelity Google+: https://plus.google.com/+fidelity LinkedIn: https://www.linkedin.com/company/fidelity-investments ------------------------------------------------------------------------------------------ Fixed income can be a critical part of nearly every well-diversified portfolio. Used correctly, fixed income can add diversification and a steady source of income to any investor’s portfolio. But how do you choose the right fixed-income ETF? The key to choosing the right fixed-income ETF lies in what it actually holds. U.S. bonds or international bonds? Government securities or corporate debt? Bonds that come due in two years or 20 years? Each decision determines the level of risk you’re taking and the potential return. There are many types of risks to consider with bond investing. Let’s talk more about two in particular: Credit risk and Interest-rate risk. Determining the level of credit risk you want to assume is an important first step when choosing a fixed-income ETF. Do you want an ETF that only holds conservative bonds—like bonds issued by the U.S. Treasury? Or do you want one holding riskier corporate debt? The latter may pay you a higher interest rate, but if the company issuing the bond goes bankrupt, you’ll lose out. ETFs cover the full range of available credit. Look carefully at the credit quality composition of the ETFs underlying holdings, and don’t be lured in by promises of high yields unless you understand the risks. Bonds are funny. Intuitively, you would assume that higher interest rates are good for bondholders, as they can reinvest bond income at higher prevailing interest rates. But rising interest rates may be bad news, at least in the short term. Imagine that the government issues a 10-year bond paying an interest rate of 2%. But shortly thereafter, the U.S. Federal Reserve hikes interest rates. Now, if the government wants to issue a new 10-year bond, it has to pay 3% a year in interest. No one is going to pay the same amount for the 2% bond as the 3% bond; instead, the price of the 2% bond will have to fall to make its yield as attractive as the new, higher-yielding security. That’s how bonds work, like a seesaw: As yields rise, prices fall and vice versa. Another important measure to consider when looking at interest rate risk is duration which helps to approximate the degree of price sensitivity of a bond to changes in interest rates. The longer the duration, the more any change in interest rates will affect your investment. Conversely, the shorter the duration, the less any change in interest rates will affect your investment. Let’s review a few other considerations when looking at fixed income ETFs. First, expense ratios: Because your expected return in a bond ETF is lower than in most stock ETFs, expenses take on extra importance. Generally speaking, the lower the fees, the better. Second, tracking difference: It can be harder to run a bond index fund than an equity fund, so you may see significant variation between the fund’s performance and the index’s returns. Try to seek out funds with low levels of tracking difference, meaning they track their index well. Finally, some bonds can be illiquid. As a result, it’s extra important to look out for bond ETFs with good trading volumes and tight spreads. There are other factors to watch for too, but these are the basics. ETFs can be a great tool for accessing the bond space, but as with anything, it pays to know what you’re buying before you make the leap. Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, Rhode Island, 02917 723251.2.0
Views: 64152 Fidelity Investments
An interview with a pioneer of high yield bonds and philanthropist, Michael Milken. In this interview, Michael discusses his early life and developing the high yield bond market at Drexel Burnham Lambert. Michael also talks about his philanthropic work and the American dream. 📚 Books about Michael Milken are located at the bottom of the description❗ Like if you enjoyed Subscribe for more:http://bit.ly/InvestorsArchive Follow us on twitter:http://bit.ly/TwitterIA Other great Stock Market Investor videos:⬇ Ray Dalio on Hedge funds, Success and Life/Work: http://bit.ly/RDVid1 Charlie Munger on Common sense and Investing:http://bit.ly/CMVid1 Video Segments: 0:00 Introduction 1:12 Giving pledge? 1:38 Met your wife in high school? 2:19 Grew up in L.A? 2:38 Were you a good student? 3:07 Why did you change from science? 4:36 Wharton? 4:46 High yield bonds? 6:29 New York? 7:33 Moving to L.A? 8:55 BREAK 9:25 California lifestyle? 9:57 Inventing high yield bonds? 12:36 Did you reject any successful companies? 13:36 Leaving Drexel? 15:25 Prostate cancer? 18:12 Financing health? 19:22 BREAK 19:37 Education? 20:41 Regrets? 21:55 What is the American dream? Michael Milken Books 🇺🇸📈 (affiliate link) The Predator’s Ball: http://bit.ly/PredatorsBall Den Of Thieves: http://bit.ly/DenOfThievesMM Interview Date: 21st October, 2018 Event: David Rubenstein Show Original Image Source:http://bit.ly/MMilkenPic Investors Archive has videos of all the Investing/Business/Economic/Finance masters. Learn from their wisdom for free in one place. For more check out the channel. Remember to subscribe, share, comment and like! No advertising. #InvestorsArchive
Views: 2859 Investors Archive
Portfolio Manager Gene Neavin offers perspective on the overall positive performance of high-yield bonds during the past nine rising-rate periods. Views as of March 8, 2016. For disclosure, visit http://bit.ly/FederatedYouTube. For more information, visit http://www.federatedinvestors.com.
Views: 241 FederatedInvestors
Jeff Gundlach says - Massive bond issues coming. Homebuilders already entered bear market. US stock indices and the rest of the world's diverged wildly since June. Higher rates from here will negatively impact the stocks and real estate markets. Republicans will lose the House in November.
Views: 19745 The Macro
A potential rate hike by the Fed has hampered investor appetite for risky assets, such as emerging markets and high-yield debt. Moreover, we’ve seen bond spreads widen, downgrades, negative bias, defaults, rising capital outflows, and emerging market currencies depreciate as the September meeting nears. In this CreditMatters TV segment, Associate Director Sarab Sekhon discusses the impact of the rate hike on risk assets.
Views: 34 S&P Global Ratings
Portfolio Manager Gene Neavin discusses what high-yield bond investors can expect in a rising-rate environment. Views as of 3-15-2017. For disclosure, visit http://bit.ly/FederatedYouTube. For more information, visit http://www.federatedinvestors.com.
Views: 257815 FederatedInvestors
2017 was a solid year for high yield. Andrew Susser, head of the corporate bond team at MacKay Shields, takes a look at what's ahead in 2018. Connect With Us! Blog: https://mainstayinvestmentsblog.com/ LinkedIn: https://www.linkedin.com/company/mainstay-investments Twitter: https://twitter.com/NYLandMainStay Facebook: https://www.facebook.com/newyorklifemainstayinvestments
Views: 821 New York Life Investments
Josh Sigurdson talks with author and economic analyst John Sneisen about Moody's most recent warning as the credit rating agency claims there is likely a large wave of junk bond defaults ahead. We have seen the level of global non-financial companies rated as speculative or junk rise 58% since 2009, the largest proportion in history! We've also seen a 49% increase in debt for U.S. companies as well as the rise of share buybacks which are becoming more prevalent and more risky by the day. Moody's warnings should not be taken in stride. The agency only issues warnings when they absolutely have to and cannot put off the bad market sentiment any longer. They can only cover up so long until it becomes obvious. For their own good, they have to look like a serious credit rating agency when the markets tank, so they can say "I told you so." According to Moody's, the low interest rates and obsession with yield has lead to companies issuing mounds of debt that in comparison offer low levels of protection for investors. They warn that when economic conditions worsen, the outlook won't be so benign. We haven't seen this level of concern since 2008, and there's a reason for that. Nothing has changed since 2008. Well, actually scratch that... things have gotten WORSE since 2008. We never saw a recovery, we simply saw perpetuation. Putting off the crisis a bit longer, leading to far more pressure build-up and centralization run amok. Now, when it comes down, it'll come down that much harder and it'll be as if no one ever learned. If we want to stop the circular havoc, we as individuals need to support the individual's demand of their currency, the free market. Not bank and government centralization leading to massive downfalls. How many times do we need to go through this. Of course the fundamentals are off the table due to the level of manipulation in the monetary system as well as the markets, so we cannot put a date on the crash, but we know it has to happen inevitably and so we must prepare and understand the repeated problems. Self sustainability and individual responsibility are simply the most necessary ways to protect ourselves against this market and monetary calamity. Individuals must do their own due diligence and come out of this problem, strong and independent. Stay tuned for more from WAM! Video edited by Josh Sigurdson Featuring: Josh Sigurdson John Sneisen Graphics by Bryan Foerster and Josh Sigurdson Visit us at www.WorldAlternativeMedia.com LIKE us on Facebook here: https://www.facebook.com/LibertyShallPrevail/ Follow us on Twitter here: https://twitter.com/WorldAltMedia FIND US ON STEEMIT: https://steemit.com/@joshsigurdson BUY JOHN SNEISEN'S LATEST BOOK HERE: Paperback https://www.amazon.com/dp/1988497051/ref=zg_bs_tab_pd_bsnr_2?_encoding=UTF8&psc=1&refRID=ZBK6VTXQRA2F77RYZ602 Kindle https://www.amazon.ca/dp/B073V5R72H/ref=sr_1_1?s=digital-text&ie=UTF8&qid=1500130568&sr=1-1 DONATE HERE: https://www.gofundme.com/w3e2es Help keep independent media alive! Pledge here! Just a dollar a month can help us stay on our feet as we face intense YouTube censorship! https://www.patreon.com/user?u=2652072&ty=h&u=2652072 BITCOIN ADDRESS: 18d1WEnYYhBRgZVbeyLr6UfiJhrQygcgNU https://anarchapulco.com/buy-your-tickets/ Use Promo Code: wam to save on your tickets! World Alternative Media 2018 "Find the truth, be the change!"
Views: 18122 World Alternative Media
High yield bond funds may not be shooting the lights out so far in 2015, but they are still a good place to be with the domestic economy growing 'modestly,' said Andy Toburen, senior portfolio manager at Chartwell Investment Partners. 'Default rates are in the 2% to 3% range which is low by historical standards and in an environment with a solid economy, reasonably low default rates and pretty good valuations, we like high yield right now,' said Toburen. The SPDR Barclays High Yield Bond ETF (JNK), which yields just under 6%, is down slightly over 1% year-to-date and over 7% in the past 12 months. The entire high yield sector suffered in the fourth quarter of 2014 as lower oil prices dragged down the value of energy related paper. Toburen remains watchful of that particular sector. 'Certainly the lower quality, triple C rated and distressed paper, some of that is in energy and some in metals and mining, that’s an area where we would be very cautious,' said Toburen. On the flip side, lower gasoline prices have acted like a tax cut for consumers and that is why Toburen is constructive on sectors which rely on Americans opening their wallets. Subscribe to TheStreetTV on YouTube: http://t.st/TheStreetTV For more content from TheStreet visit: http://thestreet.com Check out all our videos: http://youtube.com/user/TheStreetTV Follow TheStreet on Twitter: http://twitter.com/thestreet Like TheStreet on Facebook: http://facebook.com/TheStreet Follow TheStreet on LinkedIn: http://linkedin.com/company/theStreet Follow TheStreet on Google+: http://plus.google.com/+TheStreet
Views: 401 TheStreet: Investing Strategies
Take a closer look at the risk/reward profiles of investment grade and high yield corporate bonds in the current climate with S&P DJI’s J.R. Rieger and Shaun Wurzbach.
Views: 788 S&P Dow Jones Indices Channel
This video is one part of BondSavvy's 10-part video "The Crash Course on Corporate Bond Investing." The full Crash Course video is included with a subscription to BondSavvy https://www.bondsavvy.com/corporate-bond-investment-picks or can be bought on its own here https://www.bondsavvy.com/a-la-carte/corporate-bond-investing-101. This video explains the differences between interest rate risk and credit risk and how you can factor this into your next corporate bond investment. Many investors only invest in investment-grade bonds because they are afraid of the default risk of high-yield (or below investment grade) bonds. The challenge with this thinking is that investment-grade bonds often have longer durations (or time until maturity) and are therefore more sensitive to changes in interest rates. To alleviate these risks, it's important for investors to consider both investment-grade and non-investment-grade corporate bonds. You will learn the following by watching this video: * Difference between investment-grade corporate bonds and high-yield corporate bonds * Difference in default rates between investment-grade corporate bonds and high-yield corporate bonds * How bond prices are quoted * How owning high-yield corporate bonds can help reduce investors' interest rate risk * Why shorter-dated bonds are less sensitive to changes in interest rates * What happens to bond prices when interest rates increase?
Views: 476 BondSavvy
Mr. Chia Tse Chern, Portfolio Manager, Head of Singapore and Asia Fixed Income, UOB Asset Management Ltd 1. Why invest in Asian High Yield? 2. What kind of returns can we expect from Asian HY? 3. Many investors are concerned with the interest rate hikes this year, what are your views on this? 4. Lately, we are seeing a number of downgrading of Asia credits and teetering on the brink of default. What are your views on these downgrades and how will it affect your portfolio? 5. What is the key risk and return for Asian High Yield? 6. How do you Control Credit Risk in your Fund’s Portfolio? 7. Seems like USD is on a rally now, is this beneficial for the SGD-based investors in Singapore?
Views: 312 FSMOne
A low default rate due to the improving economy and relatively high yields continue to make the high yield bond space attractive said Kevin Lorenz, portfolio manager for the TIAA-CREF High Yield Bond Fund. 'Currently yields are about 6.5%, spreads are about 500 basis points over Treasuries and this is an environment where the default rate continues to be very benign,' said Lorenz. 'The default rate has been under 2%, and while it’s leaking a little bit higher, the long term average is roughly 4.5%.' The TIAA-CREF High Yield Bond Fund is down 40 basis points so far in 2015. The fund has a trailing 12-month yield of 5.35%. Issuance year-to-date had been very strong until this current patch of volatility, said Lorenz. That said, it has been dominated by refinancings which has kept the market from being flooded by new paper. As for the volatility, which has been stoked by problems in China and Greece, Lorenz said it’s a matter of time horizon. ' Subscribe to TheStreetTV on YouTube: http://t.st/TheStreetTV For more content from TheStreet visit: http://thestreet.com Check out all our videos: http://youtube.com/user/TheStreetTV Follow TheStreet on Twitter: http://twitter.com/thestreet Like TheStreet on Facebook: http://facebook.com/TheStreet Follow TheStreet on LinkedIn: http://linkedin.com/company/theStreet Follow TheStreet on Google+: http://plus.google.com/+TheStreet
Views: 63 TheStreet: Investing Strategies
A default wave will soon be hitting high yield bonds and investors better be prepared for it, says Steve Blumenthal, CEO of CMG Capital. Still, Blumenthal says there is a bright side to the coming washout in junk bonds. 'The good news is that the selloff will create one of the greatest buying opportunities of a lifetime in the not too distant future. Remember the 20% yields on high yield bonds in 2008? My two cents is that the coming opportunity will be even better,' says Blumenthal. Blumenthal says tactical trend analysis enables investors to identify the primary movements in high yield bonds. His strategy is to stay invested during the up trending cycles and shorten maturities when the trend turns down. In other words, buy the iShares iBoxx High Yield Corporate Bond ETF (HYG) or the SPDR Barclays High Yield Bond ETF (JNK) when trends are turning up. Subscribe to TheStreetTV on YouTube: http://t.st/TheStreetTV For more content from TheStreet visit: http://thestreet.com Check out all our videos: http://youtube.com/user/TheStreetTV Follow TheStreet on Twitter: http://twitter.com/thestreet Like TheStreet on Facebook: http://facebook.com/TheStreet Follow TheStreet on LinkedIn: http://linkedin.com/company/theStreet Follow TheStreet on Google+: http://plus.google.com/+TheStreet
Views: 1855 TheStreet: Investing Strategies
Russ Mould looks at the mechanics of the iShares Global High Yield Corporate Bond ETF, which tracks the Markit iBoxx Global Developed High Yield Capped index. He also attempts to work out why it is currently proving so popular. The information in this video and transcript is for the use of professional advisers only. The value of investments can go down as well as up and your client may not get back their original investment. Past performance is not a guide to future performance and some investments need to be held for the long term. This promotion does not offer advice about the suitability of our products or services.
Views: 1246 AJ Bell Investcentre
Fidelity's Bryan Collins - Head of Asian Fixed Income and Portfolio Manager - explains why the Asian high yield market is a sweet spot for investors. The Asian high yield market is currently at a sweet spot for investors. The asset class provides the highest income among major regional bond markets. Moreover, the Asian high yield market is supported by strong market growth, a low default rate and very strong growing demand from domestic Asian investors. The Asian market saw over US$120 billion worth of net insurance in 2017, including many first-time issuers which our large in-house dedicated research team helped take advantage of. The Asian fixed income market is also relatively healthy, with a relatively low default rate compared to other regional bond markets. The demand for high yield here in Asia also remains very strong. This incremental interest and demand coming from investors right across the region including Asian institutional investors, has helped reduce volatility and actually improve liquidity of the market over the years. The Asian high yield market offers investors with exciting income prospects and we believe that active management is the key to long-term value creation in this market. For more details about Fidelity’s Asian High Yield Fund, please visit this space: https://www.fidelity.com.sg/investment/asian-fixed-income/asian-high-yield/
Views: 88 Fidelity International
Dennis McCarthy - (213) 222-8260 - [email protected] - capitalmarketalerts.com - New high yield bonds are now being issued at interest rates that don't really qualify as high. Forbes magazine reports that the 30-day average high yield new issue bond yield fell to 6.11% at the end of January. If your company has debt outstanding in an amount of $100 million or more, your company should consider issuing high yield bonds at these historically low rates. Many companies continue to borrow at short-term floating rates because those rates are amazingly low. Most likely, short-term floating rates won't stay this low for 5 to 10 years, however. In contrast, today's high yield bond rates present an opportunity to lock in low rates for a long period. Also, short-term floating rate debt typically carries covenants that restrict a company. Again, in contrast, high yield bonds typically have very few covenants restricting the issuer. Please contact me to discuss raising high yield bonds or any capital market transaction. Forbes article link: http://www.forbes.com/sites/spleverage/2013/01/22/high-yield-bond-yields-hit-record-low-6-11/
Views: 142 Dennis McCarthy
The high yield bond market has stabilized since worries about falling energy prices dragged it down last winter. Richard Lindquist, head of high yield at Morgan Stanley Investment Management, says the good times will continue as long as defaults stay low and the Federal Reserve does not spook the market. 'At the end of 2014 people didn’t know where the bottom was in oil prices, so to some extent a big part of the selloff was justified,' says Lindquist. 'It really forced people to do research on their energy holdings and find out which companies had good hedges and what type of access to the capital markets they had.' Now that the troubled energy companies and their potentially problematic paper have been identified, Lindquist says fund managers and investors have regained confidence in the overall high yield sector. He says he is finding value in the industrial sectors that are still slowly recovering from the 2008 market collapse, as well as some consumer durable names which are growing with the economy. 'Our view is that default rates are likely to remain contained and that high yield issuers, just like investment grade counterparts, will be equally supported by the economy,' says Lindquist. Subscribe to TheStreetTV on YouTube: http://t.st/TheStreetTV For more content from TheStreet visit: http://thestreet.com Check out all our videos: http://youtube.com/user/TheStreetTV Follow TheStreet on Twitter: http://twitter.com/thestreet Like TheStreet on Facebook: http://facebook.com/TheStreet Follow TheStreet on LinkedIn: http://linkedin.com/company/theStreet Follow TheStreet on Google+: http://plus.google.com/+TheStreet
Views: 123 TheStreet: Investing Strategies
Mitchell Kuhn from Wisdom Financial explains the current bubble in Junk bonds and how it will impact investors. Go to www.WisdomFinancial.org and click on "Click Here to Discover Your Risk Number" to take the complimentary risk assesment. Junk bonds are simply money loaned to companies that have higher risk; therefore, they have to pay higher interest rates. They are also known as high yield bonds. Interest rates have been extremely low since 2008, which has forced investors to look for higher yield by taking on more risk. Consequently, you may own junk bonds and not even know it. The very same things happened back in the 2000s during the run-up to the housing crisis in 2008-2009. Investment bankers created higher yield investments by including riskier mortgages in their investment products. Have you seen the movie “The Big Short”? If not, I highly recommend you do. I suggest watching it on Vid Angel where you can watch a PG version without all the nonsense. A very important lesson in that movie is that many investors did not fully understand the risk they were taking in mortgage backed securities. The interest rates paid were not enough to compensate them for the risk they were taking. Much of this was due to fraud. No one can tell you exactly when or how much the markets will go down. The best thing to do is understand the risk in your portfolio and look for strategies that can help protect you from major market losses. Wisdom Financial uses Riskalyze to help investors understand the risk in their portfolios and make the necessary adjustments. Their core technology is build on the academic framework that won the Nobel Prize for Economics in 2002. They have helped analyze billions of dollars in portfolio assets. With this powerful tool, we can quickly analyze all the investments in your current portfolio and make recommendations that could help reduce your risk and volatility. Take the complimentary 5 min risk quiz by clicking here. Please give me call or send me an e-mail with any questions you have. I love helping people with the goal to reduce risk and volatility in their investment portfolios. I give away a tremendous amount of free advice to anyone that reaches out to me. Give me a call and see for yourself. ~ Mitchell Kuhn
Views: 665 Wisdom Financial
Debt Funds Explained in this video are specific to a scenario when Interest Rate or Bond Yield is Increasing. However, the basic concept remains the same. As an investor you can generate double digit returns from the debt funds provided you follow 2 conditions. 1. Invest in short term debt funds when the interest rate cycle or bond yield is increasing. On the contrary, investing in long term debt funds when the interest rate cycle or bond yield is decreasing. By doing this you can take advantage of a full reversal of the cycle. 2. You should invest in debt funds at the right time i.e. just at the beginning of the reversal of the interest rate cycle else you will miss the rally. I generated double digit returns from long term debt funds in 2013-14 when the interest rate cycle was softening. Currently, it is anticipated that interest rate cycle is at the verge of reversal & will increase. Therefore, to take advantage i have invested in short term debt funds & credit opportunities fund. Also, your investment horizon should match with the investment horizon of debt funds to maximize returns. Always chose the scheme with good rating and large in size i.e. AUM. If you liked this video, You can "Subscribe" to my YouTube Channel. The link is as follows https://goo.gl/nsh0Oh By subscribing, You can daily watch a new Educational and Informative video in your own Hindi language. For more such interesting and informative content, join me at: Website: http://www.nitinbhatia.in/ T: http://twitter.com/nitinbhatia121 G+: https://plus.google.com/+NitinBhatia #NitinBhatia
Views: 16509 Nitin Bhatia