|Bid||50.88 x 4000|
|Ask||50.88 x 34100|
|Day's Range||50.88 - 50.89|
|52 Week Range||50.02 - 51.07|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||-0.01|
|Expense Ratio (net)||0.20%|
DoubleLine Capital CEO Jeffrey Gundlach, otherwise known as "The Bond King" in the capital markets space, said the S&P 500 will hit new lows as a bear market puts a stranglehold on the index. "I'm pretty sure this is a bear market," Gundlach told CNBC. In the last three months, its performance--down 10.31 percent-- speaks to the mass of sell-offs occurring in U.S. equities as rising interest rates and trade wars have sparked a flight from stocks and into safe-haven assets like bonds.
The Christmas season may be a time when winter climates around the globe take hold, but in the capital markets, while the snow is falling, the rates are rising. Given the current economic climate, investors ...
As chances of a Fed rate hike in December are pretty high and can cause some turmoil in the markets, these ETF areas could provide cushion to investors.
Since 2016, the Federal Reserve has hiked rates seven times and if Goldman Sachs' forecast of five more rate hikes to come is correct, fixed-income investors might want to bring their flotation devices starting in December--not the apparatus that aids in keeping oneself above water, but fixed-income investments that feature a floating rate component. “The Fed is unlikely to conclude the hiking cycle unless it is reassured that the labor market overshoot doesn’t grow much further,” said Goldman Sachs analysts Jan Hatzius, Alec Phillips and David Mericle, states. Rather than invest directly in the bonds themselves, investors can opt for exchange-trade funds that invest in debt issues that feature floating rate notes like the SPDR Blmbg Barclays Inv Grd Flt Rt ETF (FLRN) and the iShares Floating Rate Bond ETF (FLOT) .
A falling local currency in conjunction with rising government debt yields are bringing South African bonds to the brink of junk status as the likelihood of a credit rating downgrade increased as the country's lawmakers expect wider budget deficits and lower growth forecasts. Additionally, Finance Minister Tito Mboweni said government debt will peak within two years and be higher than initially expected, while state revenue languishes. This news won't do South Africa any favors once it reaches the ears of credit rating companies like Moody’s Investors Service.
Rising interest rates may reach a level that matches U.S. President Donald Trump’s relationship with the media. The president’s disdain for rate hikes won’t gain any sympathy from the Federal Reserve as ...
Federal Reserve Chairman Jerome Powell confirmed the overall market consensus on Wednesday that interest rates would rise with the announcement that the federal funds rate would elevate by 25 basis points to 2.25. In the bond markets, activity for high-yield, senior loan and floating rate-focused ETFs ticked higher as investors scrambled to position their portfolios to take advantage of the higher interest rates. "In fixed income, high-yield (which has been quiet of late) saw some increased activity and was mostly better for sale," noted Brian Gilman of ETF Sales & Trading at Virtu Financial.
A raging bull market paired with data from the Department of Commerce showing that gross domestic product rose 4.2% in the second quarter gives Federal Reserve Chairman Jerome Powell ample reason for investors to get swept away by a wave of rising interest rates in the central bank's forthcoming monetary policy decisions. With no signs of slowing, it appears that a healthy flow of rising rates is in order, according to Boston Federal Reserve President Eric Rosengren. With a monetary policy meeting slated for later this month, Rosengren also forecasts that the current federal funds rate will float between a range of 2.5% to 3%. “Gradually increasing over the course of this next year makes sense,” Rosengren told CNBC in an interview.
If the current raging bull market was compared to a baseball game, then according to Ray Dalio, American billionaire investor and founder of one of the world’s largest hedge funds, this game of profit-seeking is in the seventh inning or in terms of capital markets, has about two years left to run. Dalio's prescience helped him to accurately predict the financial crisis in 2008, so fixed-income investors are keen to listen and take advantage of this extended bull market. In conjunction with the latest data from the Department of Commerce showing that U.S. gross domestic product rose to a revised 4.2% in the second quarter gives the Federal Reserve ample reason for additional rate hikes through the rest of 2018.
The inevitable revealed itself Friday as Federal Reserve Chairman Jerome Powell said in a speech at the central bank's annual retreat in Jackson Hole, Wyoming that a gradual rate hike is to be expected--a common notion felt in the U.S. capital markets. In June, the Fed hiked interest rates for a second time, bringing the federal funds rate up 25 basis points to its current level of 2 and now more is expected to come albeit at a snail's pace. "I see the current path of gradually raising interest rates as the (Federal Open Market Committee's) approach to taking seriously both of these risks," said Powell.
A raging bull market combined with the latest data from the Department of Commerce showing that gross domestic product rose 4.1% in the second quarter gives the Federal Reserve ample reason for rate hikes. ...
In times of market trouble, investors look for ways to limit their exposure while not foregoing returns entirely. While one could choose plain cash, the real rate of cash is negative; with inflation chipping away at value, a cash holding actually declines in value over time.
One of the hottest areas of the fixed income space this year is floating rate notes (FRNs), a theme benefiting exchange traded funds such as the iShares Floating Rate Bond ETF (CBOE: FLOT) . Floating rate notes, like the name suggests, have a floating interest rate. Specifically, the notes’ have a so-called reset period with interest rates tied to a benchmark, such as the Fed funds, LIBOR, prime rate or U.S. Treasury bill rate.
After a two-day monetary policy meeting, the Federal Reserve's Federal Open Market Committee decided to keep interest rates unchanged on Wednesday. With the Fed's vote of confidence in the economy, the prospect for more rate hikes to come through the rest of 2018 is almost certain. The Fed stated that the labor market has "continued to strengthen," fortified by evidence of data regarding private payrolls, which increased in July by 219,000 versus an expected 185,000.
With fixed income investors looking for strategies that reduce duration risk, floating rate notes (FRNs) and the relevant ETFs are receiving renewed attention this year. That includes the iShares Floating ...
In a recent interview with CNBC, U.S. President Donald Trump unsurprisingly made his discontent known, saying he's "not happy" about the Federal Reserve's latest monetary policy moves to raise interest rates. President Trump's comments also stem from concern that a rising dollar in conjunction with rising rates will discourage investment from abroad. Looking at the U.S. Dollar Index Chart, the greenback has been gaining strength, particularly within the past few months where it has ticked above its 50-day simple moving average. While rising rates may not conjure up thoughts of excitement for President Trump, fixed-income investors allocating their capital into ETFs that feature a floating rate component are rejoicing.
IShares Floating Rate Bond ETF FLOT is a solid option for investors worried about rising interest rates and credit risk. This low-fee fund invests in investment-grade corporate bonds whose interest payments grow as rates rise. The fund tracks the Bloomberg Barclays U.S. Floating Rate Note
The latest U.S. economic data revealed by the Department of Commerce showed an increase in retail sales in June, signaling that continued growth could make way for more interest rate hikes to come before the end of 2018. Furthermore, retail sales have climbed steadily the last five years, almost touching the 2% mark in the tail end of 2017. Furthermore, continued growth came as a result of a 0.4% increase in auto sales during the month of June following a 1.4% increase in May.
When it comes to fixed income investing, investors may seek long-term bonds to extract its benefits of higher returns in lieu of additional risk, but in market times like today where trade concerns continue to roil the markets and interest rate spikes lie ahead, a short-term strategy in conjunction with a floating rate component could be the ticket to solid returns as in the case of the iShares Floating Rate Bond ETF (FLOT) . FLOT seeks to track the investment results of the Bloomberg Barclays US Floating Rate Note
Even if you have been an investor for 30 years, you don't really know about high interest rates. U.S. interest rates peaked in October 1981, when the 30-year Treasury bond traded at 15%. The dream, when I started investing later that decade, was of "hat-sized yields" of 6%-7%, which didn't become the norm until the early 1990s. Today, interest rates are less than half that. Early in 2018, the rate on the 30-year Treasury stood around 2.7%. By mid-February, the yield on that long-term debt had spiked about 15% to around 3.1%, which is roughly where it trades today. Investors panicked at the time, and higher interest rates still have investors worried. For good reason. After all, higher interest rates make bonds more competitive with some dividend stocks, and perhaps more importantly, they make borrowing more expensive for corporations, eating into the bottom line. The Federal Reserve has already raised its benchmark rate once this year, is about to do so a second time and is expected to hike interest rates once or even twice more before 2018. Your portfolio could well feel the shockwaves from these actions - though you can minimize the damage by taking a few actions. Here are six techniques suggested by money managers. SEE ALSO: 45 Smart Financial Moves You Can Make in an Hour or Less