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Short-term bond yields are finally more attractive than dividend stocks

“In fact, short-term yields look much more attractive than many stock dividends and longer-dated fixed income instruments” writes Nathan Chiaverini for marketwatch.com. Jerome Schneider is PIMCO’s head of short-term portfolio management.Low cost of liquidity: Transaction costs for short-term bonds tend to be low.Andrew Wittkop is a portfolio manager focusing on Treasury bonds, agencies and interest rate derivatives, and Nathan Chiaverini is a portfolio manager on the short-term portfolio management team.Positive absolute-return potential: Higher-yielding short-term investments can help hedge bond portfolios from the impact of rising rates. Source: marketwatch.com Share This:

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Markets News 

In a volatile market, retirement investors may find this type of bond fund appealing

“For instance, when rates increase very quickly, money-market fund yields may temporarily outpace the crediting rates of stable value funds” writes Karen Chong-wulff for marketwatch.com. However, in most markets, and over most time periods, stable value funds have provided higher yields than money-market funds.Both stable value funds and comparable-quality bond funds are generally backed by higher quality, investment-grade bonds.But what about the impact of interest rates on comparable-quality bond and stable value funds?. In this environment, stable value funds have a role. Source: marketwatch.com Share This:

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Markets News Regulators 

US/German bond yield spreads last hit these levels almost 30 years ago

“The spread between the 2-year yield on U.S. and German bonds has hit its widest level since March 1989” writes Andrew Harrer for cnbc.com. Robust data in the United States has pushed yields higher as investors bet that the Federal Reserve will stay the course to raise rates three times this year.Travis Spence, EMEA Head of Fixed Income Investment Specialists at JPMorgan Asset Management goes further, saying he expect’s the Fed to increase 4 times this year.After the Fed already approved a one-quarter point-hike in March, the market is now…

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Crypto Markets News Platforms 

Sberbank uses NSD blockchain platform to place MTS bonds

“Back then, Mr Khasis said that the practical implementation is delayed due to unsolved matters such as the slow interaction of blockchain participants” reports financefeeds.com. Sberbank said that the NSD allowed the parties to use its blockchain platform – based on Hyperledger Fabric 1.1 – to carry out the transaction.Sberbank CIB, the corporate and investment banking business of Sberbank Rossii PAO (MCX:SBER), and Russian telecoms expert MTS, as well as the National Settlement Depository (NSD) have placed commercial rouble-denominated bonds using smart contracts.In January this year, Sberbank announced the establishment of…

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Markets News 

You shouldn’t fear bonds just because yields are rising

“Bonds lose value in the short term when rates rise, but rising rates ultimately lead to higher future bond returns as your long bonds become short bonds which then get reinvested in higher-yielding bonds” writes Cullen Roche for marketwatch.com. Short-term rates are up even more, with the three-month T-bill jumping from 0.9% to 1.9%.So the scenario with rapidly rising rates looks unlikely to me.Neither are high and moderately rising rates. Source: marketwatch.com Share This:

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15 dividend stocks whose 4%-plus yields beat Treasury bonds

“We calculated free cash flow yields by dividing free cash flow per share over the past 12 months by the closing share prices” writes Investing Columnist for marketwatch.com. We then compared the companies’ free cash flow yields with their current dividend yields.A company’s free cash flow is its remaining cash flow after planned capital expenditures.If you are considering common stock for higher dividend yields, you need to do your own research to form an opinion about how “safe” the company’s regular dividend payments are.If you want to shoot for higher…

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Markets News 

George Soros’ Fund Bought $35 Million of Tesla Bonds While Loading Up on Amazon, Netflix Stock

“George Soros’ investment firm bought a large amount of Tesla bonds in the first quarter of 2018, giving the under pressure electric carmaker a major backer, a regulatory filing shows” writes unknown author for cnbc.com. Soros Fund Management bought $35 million worth of convertible notes, which are bonds that can be converted into a specified number of common stock, according to a Securities and Exchange Commission (SEC) filing released on Tuesday. Some analysts suggest that Tesla may have to raise more money to allow it to continue operating.The electric carmaker…

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Markets News 

Soros’ fund bought $35 million of Tesla bonds while loading up on Netflix stock

“George Soros’ investment firm bought a large amount of Tesla bonds in the first quarter of 2018, giving the under pressure electric carmaker a major backer, a regulatory filing shows” writes unknown author for cnbc.com. Soros Fund Management bought $35 million worth of convertible notes, which are bonds that can be converted into a specified number of common stock, according to a Securities and Exchange Commission (SEC) filing released on Tuesday. Some analysts suggest that Tesla may have to raise more money to allow it to continue operating.The electric carmaker…

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Markets News Stocks 

Meet Tesla’s new bondholder: Billionaire George Soros

“NEW YORK (Reuters) – The investment firm founded and chaired by billionaire George Soros took a stake in Tesla Inc bonds during the first three months of the year, giving the electric carmaker run by Elon Musk a prominent supporter” writes Midwest Communications Inc for 95kqds.com. Soros Fund Management LLC took a $35 million stake in the convertible bonds of Tesla, which are due in March 2019 , according to filings with the U.S. Securities and Exchange Commission.Convertibles are hybrid securities, either bonds or preferred stock, that can be exchanged…

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