|Bid||27.07 x 2200|
|Ask||27.08 x 39400|
|Day's Range||27.06 - 27.14|
|52 Week Range||25.63 - 27.60|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||0.12|
|Expense Ratio (net)||0.40%|
As investors take an overhead view of the global fixed-income landscape, many are taking into account the changing market conditions and adapting to the changes by creating a diversified bond portfolio. Growth has weakened in most major economies and financial conditions have tightened going into 2019 as investors grew increasingly concerned about the end of the post-crisis economic expansion that has extended for a decade. Consequently, investors should expect increased near-term volatility.
Here's my case for why stability and not continued weakness is my base case, an employment preview, and how I'm positioned now. In August 2018, the NFIB's Small Business Survey showed a net 34% of firms felt it was a good time to expand, an all-time high. Unemployment fell to 3.7%.
On Wednesday, the U.S. Federal Reserve concluded their two day March meeting. Despite a new Summary of Economic Projections (which includes the infamous "dot plot") as well as a press conference by the Chair, we learned little out of this meeting that the Fed hadn't previously communicated. The Fed is quietly making a major shift in their approach to monetary policy.
Falling oil prices, rising interest rates and concerns about deteriorating credit quality were among the factors that chased investors from high-yield corporate bonds and the related exchange traded funds ...
The Bloomberg Barclays High Yield Energy Total Return Index was up 0.77%, marking its highest gain in two years since the Organization of the Petroleum Exporting Companies (OPEC) agreed to reduce supply ...
The 2018 Midterm Election provided the necessary rally for U.S. equities after washing investors through October's volatility machine, but this continues to persist in the capital markets as the Dow Jones Industrial Average began Monday with a 600-point loss as it struggles to recover on Tuesday--a sign that investors should give bonds a closer look--fixed-income exchange-traded funds (ETFs) in particular. The sell-offs in October was partly to blame as a confluence of these factors could signal that the environment for fixed-income investors will only get more complex. Maybe, but maybe it isn't so wise for investors to dismiss bonds outright," wrote Goldberg.
The 2018 Midterm Election results didn’t throw a curveball at investors as most expected a divided Congress would be the result, but a move into high-yield also came as the rally in the capital markets ...
The old adage of "no risk, no reward" is still thrown around as part of investment vernacular, explicitly stating that those who take on a high degree of risk will reap the benefits of their emboldened maneuvers. In the current economic climate, high-yield bonds might be considered a safe haven and for most investors, it’s hard to imagine high-yielding debt to be associated with “safe,” unless the word “not” precedes it, but to fixed-income investors in the know, these bonds have been anything, but junk in a rising rate landscape. As the curtain closes on the bull run and the late market cycle, the natural propensity for fixed-income investors is to shift back to safer government debt, but in today’s rising rate environment, high-yielding bond strategies may be the safer option.
Last week, Netflix (etftrends.com/quote/NFLX) posted better-than-expected third quarter results with a jump in subscribers and in an effort to maintain its momentum, the video streaming giant plans to offer $2 billion in junk bonds to fund new programming. “To me it feels a bit like a win-win situation," said John McClain, a high-yield money manager at Diamond Hill Capital. “You’re buying the highest-quality, high-yield business at yields that are fairly close to the overall market.
While emerging markets have been roiled by ongoing trade wars this year, there are still opportunities abound for investors seeking value and one of those areas is within emerging markets debt through the VanEck Vectors EM High Yield Bond ETF (HYEM) . The rough year in emerging market is evident in ETFs, such as the Vanguard FTSE Emerging Markets ETF (VWO) --down 7.67% YTD, iShares Core MSCI Emerging Markets ETF (IEMG) --down 7.3% YTD and iShares MSCI Emerging Markets ETF (EEM) --down 7.78% YTD.
Japanese investors with an appetite for high yields have been flocking to Chinese bonds in order to appease this hunger as access to these areas of the $12 trillion Chinese bond markets have opened due to recent reforms. Data provided by the Japanese Ministry of Finance revealed that Japanese investors purchased 151 billion yen ($1.33 billion) of Chinese bonds year-to-date, which is close to double the amount invested in 2016. “A growing number of investors are interested in Chinese bonds now,” said Hiroshi Yokotani, portfolio strategist at State Street Global Advisors. In addition to the higher yields offered by Chinese bonds, China's latest policy changes have provided the necessary ingress to allow more Japanese investors and investors across the globe to take part in the high-yielding bond bonanza.
With the extended bull market in full swing, the risk-on mentality of investors have led them to gravitate towards high-yield debt assets, but with the Federal Reserve interest rate decision looming next week, has high-yield become somewhat of a safe haven? As the curtain closes on the bull run and the late market cycle, the natural propensity for fixed-income investors is to shift back to safer government debt, but in today's environment of rising rates, high-yielding bond strategies may be the safer option. According to Sean Hanlon, Chairman, CEO and Chief Investment Officer of Hanlon Investment Management, these high-yielding bonds could be the best defense against more rate hikes to come despite most having below-investment grade debt issues.
The iShares Core US Aggregate Bond ETF (AGG) tracks the investment results found in the Bloomberg Barclays U.S. Aggregate Bond Index, which can give fixed income investors broad exposure to the bond markets. However, there are times when higher yields can be extrapolated from looking at options like the SPDR Blmbg BarclaysST HY Bd ETF (SJNK), which has been outdueling the AGG on a year-to-date basis. SJNK has returned 3.12% year-to-date, 4.09% the past year and 5.53% the last three years, while AGG is down 1.11% YTD. Additionally, AGG is down 1.26% within the past year, but up 1.70% in the last three years--a case that deconstructing the AGG to corner specific areas of the bond market, high-yield in this particular case, could be more profitable.
Benchmark treasury yields ticked higher across the board, which saw the 10-year touch the 3% marker once again this year, but despite this, high-yield corporate bonds are still an attractive option as ...
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.
Bond investors should consider the current status of the fixed-income environment and look ways to incorporate ETFs as a means to effectively harvest potential losses. On the recent webcast (available On Demand for CE Credit), Tax Loss Harvesting: What You Need to Know, Matthew Bartolini, Vice President and Head of SPDR Americas Research at State Street Global Advisors, illustrated a current fixed-income market environment where the yield curve has flattened. The Federal Reserve is slowly lifting the short end of the curve through interest rates hikes, and the markets are anticipating at least two more hikes before the year ends.
With the end of the tax year a few months away, it is never too early to plan ahead with exchange traded funds. On the upcoming webcast, Tax Loss Harvesting: What You Need to Know, Matthew Bartolini, Vice ...
Even with the Federal Reserve having raised interest rates twice this year with plans for two more hikes before year-end, investors are flocking to fixed income exchange traded funds. Low-cost ideas in ...
Fixed-income and inflation go hand-in-hand like termites to wood--inflation can erode the profits of fixed-income investments over time. Furthermore, the extended bull market has seen inflation on a steady, upward path with an increase of 2.9% for the 12 months ending July 2018, which is up from 1.9% since last August. "Inflation and fixed income are not a good combination usually," said George Rusnak, co-head of global fixed-income strategy at Wells Fargo.
It was back-to-back winning quarters for high-yield bond strategies, which led a Morningstar Inc list of top fixed-income performers during the second quarter, taking seven out of the top 10 spots. High-yield ...
“Another man’s junk is another man’s treasure” is an often-used adage with respect to discovering value and in the investment arena, it’s locating profitable opportunities where others would not normally ...
Bond market observers widely expect the Federal Reserve to boost borrowing costs at its September and December meetings. That could make many fixed income investors pensive about high-yield corporate debt ...
China’s dollar-denominated junk bonds have been on a skyward move since the beginning of 2018 followed recently by 13 consecutive days of declines, but it appears that yields on these below-investment grade debt issues could be on the move up again. While yields were declining since mid-July as a result of the Chinese government undertaking an easing path to give its economy a shot in the arm, Dongxing Securities (HK) Asset Management Co. says this measure could only be temporary. “Although market sentiment has improved quite a bit for now, no one knows at this point how long the easing policy will sustain,” said Chak Lau, a credit investment manager at Dongxing Securities (HK) Asset Management Co. “It’s difficult to say whether the central bank will stop the music and continue to emphasize the deleveraging campaign again.
The Federal Open Market Committee is in the midst of a two-day meeting to discuss the current economic landscape and upcoming moves on monetary policy, which will include a policy decision announcement set to take place today with bond markets already reacting ahead of the decision. The latest data from the Department of Commerce reveals gross domestic product rising by 4.1% in June, which could be a key motivator for the Fed with respect to determining monetary policy. Yesterday, Vanguard Interm-Term Corp Bd ETF (JNK) received an influx of 35.82 million and SPDR Blmbg BarclaysST HY Bd ETF (SJNK) saw an uptick in buy volumes with $39.03 million worth of trading volume experienced. “We expect only minor changes to the policy statement to reflect the latest developments in the economy,” economists at Bank of America Merrill Lynch wrote in a research note.