|Bid||87.29 x 1100|
|Ask||87.54 x 800|
|Day's Range||87.40 - 87.56|
|52 Week Range||78.16 - 100.02|
|PE Ratio (TTM)||N/A|
|YTD Daily Total Return||14.06%|
|Beta (3Y Monthly)||0.00|
|Expense Ratio (net)||0.15%|
Over the summer, investors probably learned more about yield curves than they wanted to, but a key recession indicator, the inverted yield curve, is flattening as yields are rising. Is an inverted yield curve still a threat? “The curve did invert, but it didn’t invert long enough or deep enough to send a signal of a recession,” said Donald Ellenberger, head of multisector strategies at Federated Investors.
This article was originally published on ETFTrends.com. Hedge funds focused on quantitative strategies are taking aim at the bond markets and one of their prime tools is leveraging advanced statistics and machine learning, according to an article in Bloomberg. Gut instincts used to be one of the key ingredients to success in the bond markets, but that is now been replaced by more quantitative strategies.
Investors are bombarded with a bevy of data from which to make investment decisions from, but as the extended bull market begins to dissipate, the need to get more strategic with their capital allocation arises. Fortunately, for those who want to incorporate more strategic maneuvers in the market via factor investing, there are more tools at their disposal. First, investors need to understand what they’re getting into when it comes to factor investing.
The Treasury Department has been contemplating the release of an ultra-long bond, but it appears debt issues with a 50-year maturity date may be coming sooner than we think. The news comes as yields have been at record lows and talks of zero to negative interest rates are creeping into bond market vernacular.
Heading into 2019, there were concerns that BBB-rated corporate bonds, debt residing within one to three notches of junk territory, were headed for a raft of downgrades. For most of this year, those concerns were allayed and after a recent bout of some concern for BBB-rated debt, markets are pricing in bullishness for this corner of the corporate bond market. Up 11.24% year-to-date, the ProShares S&P 500 Bond ETF (SPXB) is a solid idea for investors looking to tap BBB-rated corporates.
The Treasury Department has been contemplating the release of an ultra-long bond, but it appears debt issues with a 50-year maturity date may be coming sooner than we think. The news comes as yields have been at record lows and talks of zero to negative interest rates are creeping into bond market vernacular. The news comes after the Federal Reserve lowered interest rates for a third time.
Factor investing, in and of itself, is still trying to gain its footing among the masses and according to the latest Global Factor Investing Study by Invesco, the trend is heading towards the positive. Additionally, there’s also good news for fixed income as factor funds are starting to see more growth among investors.
Factor investing, in and of itself, is still trying to gain its footing among the masses and according to the latest Global Factor Investing Study by Invesco, the trend is heading towards the positive. Additionally, there’s also good news for fixed income as factor funds are starting to see more growth among investors. While the recurring argument in the capital markets are whether value or growth is in pole position, Invesco’s study is seeing more interest for all factors.
There’s been a lot of focus lately on bonds, especially with the return of volatility spurring more investors to dive into fixed income options. With the need to get more strategic, factor investing is ...
October brings playoff baseball into sports, but for the capital markets, volatility could bring curve balls to investors. As such, when playing in the fixed income exchange-traded fund (ETF) market, it’s ...
Higher bond prices are conversely pushing down yields to fresh lows for Treasury notes, causing investors to seek yield in higher, riskier debt issues. As global growth fears persist, bonds will likely continue to be the default safe haven as they have been for years when market downturns have taken place. Per a Fortune report, “Global interest rates, already low for most of the decade since the Great Recession, are falling again, making it harder for pension funds and small investors to harvest the slow-and-steady interest income that makes bonds the foundation of many retirement funds.
As more investors pile into safe-haven government debt as a default risk-off maneuver, Treasury Secretary Steve Mnuchin says a 50-year bond offering is under serious consideration. It’s something the Treasury department has been mulling for some time, but Mnuchin confirmed the idea could actually come into fruition.
As more investors pile into safe haven government debt as a default risk-off maneuver, Treasury Secretary Steve Mnuchin says a 50-year bond offering is under serious consideration. It’s something the Treasury department has been mulling for some time, but Mnuchin confirmed the idea could actually come into fruition.
A lot of market mavens are trumpeting the benefits of shifting into value and away from growth in the current market environment, but how can that translate into the fixed income space? One area is investment-grade ...
It’s only a matter of time before it’s more in the United States,” Greenspan said on CNBC’s “Squawk on the Street ” on Wednesday, adding investors should watch the 30-year Treasury yield, which hit an all-time low last week. “We’re so used to the idea that we don’t have negative interest rates, but if you get a significant change in the attitude of the population, they look for coupon,” Greenspan said. While bonds have been the default safe haven amid the recent volatility in the equities market, it can be daunting to look at all the options, such as government debt and corporate bonds.
While bonds have been the default safe haven amid the recent volatility in the equities market, it can be daunting to look at all the options, such as government debt and corporate bonds. One way to go about building a proper bond portfolio is to consider the risks first and foremost. When it comes to investing in bonds, there are typically two camps, according to MarketWatch's Jared Dillian.
The concept of buy and hold could reach extreme levels in the government debt market as U.S. officials are contemplating the issuance of ultra-long Treasury bonds that could span 50 to 100 years. Per a report in Barron's, "U.S. officials have revived a conversation about issuing ultra-long Treasury bonds, which would mature in 50 to 100 years, now that long-term borrowing costs have fallen to record lows.
Treasury yields continued their free fall, which is spooking investors with an inverted yield curve–a recession indicator. As such, it’s forcing bond investors to take a closer look at smart beta when ...
As if investors weren’t already racked by volatility due to inverted yield curves, the 2- and 10-year did its third inversion dance on Thursday after the 10-year note traded below the 2-year note. The inverted yield curve has been a solid recession indicator, which has been fueling an equities sell-off and a flight to safe-haven government debt. “With this very low unemployment rate, with wages rising, with the inflation rate staying close to the Fed’s target, I think we’re in a good place relative to the mandates that we’re asked to achieve,” Kansas City Federal Reserve President Esther George.
The benchmark 30-year Treasury yield hit a historic low, falling below 2 percent for the first time ever last week as investors continued to pile into safe haven government debt to escape the recent market volatility. “Investors should also bear in mind that the bond market rally looks stretched. Meanwhile, the inverted yield curve is causing investors to fret and seek safety into government debt.
Treasury yields continued their free fall on Monday as the 10-year yield went down to 1.64 percent on Monday and came less than 6 basis points higher than the 2-year yield to once again, spook investors with an inverted yield curve--a recession indicator. As such, it's forcing bond investors to take a closer look at smart beta when it comes to yield-hunting in fixed income markets. There’s more fear that the Fed is going to be slow in making moves, and the economy is going to to into recession,” said Andrew Brenner, National Alliance head of international fixed income.
Market volatility is opening the pathway for investors to flock to safe haven government debt, which is causing yields to fall. As such, a yield curve inversion—a typical sign ahead of a recession—is forming with respect to the 2- and 10-year Treasury yields. This should cause the rate-sensitive 2-year note yield to fall as well, but that hasn’t been the case even with the change in the central bank’s interest rate policy.
With U.S. interest rates declining, some investment-grade corporate bond strategies are performing well this year. For example, the ProShares S&P 500 Bond ETF (SPXB) is higher by nearly 10% year-to-date. SPXB, the first ETF dedicated to corporate bonds issued by S&P 500 member firms, follows the S&P 500/MarketAxess Investment Grade Corporate Bond Index.
Rate cuts and trade wars have been giving investors more than the necessary dosage of volatility as of late, but it opens up opportunities for fixed income exchange-traded fund (ETFs). For investors looking for that safe-haven bond exposure, it might be best to start with the largest provider of fixed income ETFs. "While the growing adoption by wealth management and institutional investors is a boon for most asset managers, certain firms are favorably positioned relative to others.
It doesn’t matter if it’s in the long or short end of the yield curve, with violent market movements like those investors have been experiencing lately, it’s a reminder that a move to bonds can benefit ...