Investing in bonds to take shelter from the potential tumble in stock prices also carries great risk
Bond investors are giving up a lot of yield by taking on government bonds to avoid the potential default in corporate bonds
Fixed-income investors are looking to high-yield bonds, preferred shares, REITs and MICs to generate greater returns
Short-term interest rate tightening is likely to flatten the yield curve if not accompanied by expectations of higher future inflation
Meagre returns in government debt are driving investors into equities, but bonds still serve a key purpose for some clients
How to adjust credit quality and term to preserve yield in a landscape of rising credit costs and stable inflation
With the U.S. facing headwinds and with rising rates and growth at home, Canada is the sweet spot for debt markets
Trading corporate bonds is becoming tougher as banks back away from trading non-government debt. If "sell" sentiment rises rapidly for this type of debt, could a bond meltdown result?
It’s tougher to trade bonds these days. Liquidity has dried up, the result of reforms that began in the fall-out of the 2008-09 global financial crisis. The lack of liquidity has expanded spreads and reduced yields on fresh, heavily traded bonds. For the vast mountain of old bonds and small bond issues that seldom trade, […]
Interest rates reflect many things, but, generally, in the bond world, they frame risks of inflation and default. With the perceived risk of higher rates in the U.S., already among the highest for developed nations, financial advisors and their clients are shifting away from U.S. federal debt and into corporate debt. The Canadian market is […]