Tag Archives: yield
Asian Fixed Income: China and the Global Bond Market
In a previous piece, we discussed that China’s lackluster performance had made it the worst-performing country in the Pan Asian bond market in 2017, and that it was the only country that closed the year in negative territory. The one-year total return of the S&P China Bond Index fell 0.29% last year (see Exhibit 1),…
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Don’t Confuse Income With Yield
Yield conventions differ for stocks and bonds, but the various calculation methods for both asset classes have an important characteristic in common—they are alternative expressions of price. Measures of yield specifically relate current price to how much dividend or interest income holders of a particular security are likely to get. Thinking of yield as income…
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Have We Seen the Bottom in Japanese Bond Yields?
While the idea of reflation is picking up steam in global markets, Japan’s core consumer price index rose 0.2% in February 2017, which remained far below the target of 2% set by the Bank of Japan (BoJ). The BoJ kept monetary policy steady in March 2017, continuing the diverging policy paths of central banks. In…
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How a Negative Interest Rate Affected the Japanese Bond Market
Since the Bank of Japan announced a negative interest rate policy earlier this year, both government and corporate bond yields have decreased (see Exhibit 1). After hitting a record low yield of -0.23% on July 8, 2016, the S&P Japan Government Bond Index rebounded following a modest stimulus announcement later that month. As of Sept….
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Asian Fixed Income: Sovereign Yields
The story of Asian fixed income remains compelling, and select Asian bond markets recorded strong growth and solid performance in 2016. Most Asian currencies strengthened with the news of the Brexit, which may further improve sentiment among market participants. Asian bond yields, though tightened, are still at an elevated level compared with their global peers….
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International Corporate Bond Exposure
Consistency and balance are often essential qualities for a strong portfolio. In the fixed income space, investors can look to the S&P International Corporate Bond Index to bolster the stability and diversity of their investments through exposure to investment grade corporate debt outside the United States. International corporate bonds are issued in a variety of…
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Asia Fixed Income: Foreign Investor Access to Onshore Chinese Bond Markets Grows
China continues to broaden foreign investor access to their onshore bond market. Luxembourg is the latest country being granted an RQFII quota by the People’s Bank of China, followed Canada, Germany, Qatar and Australia. According to the data published by State Administration of Foreign Exchange (SAFE) on April 29, 2015, the approved RQFII investment quota…
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Australian Bonds Delivered Better Risk-Adjusted Return than Equities
Australian equities and bonds both had double-digit returns last year. Looking at the one-year returns as of Jan 30, 2015, the S&P/ASX Australian Fixed Interest 0+ Index gained 10.22% and the S&P/ASX 200 (TR) rose 12.48%. While the levels of volatility came down in both markets, the annualized volatility of the S&P/ASX 200 (TR) maintained…
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2015 Resolution: Diversification
Most bond markets ended on a positive note in 2014. Some of the outperformers are the S&P Eurozone Developed Sovereign Bond Index (up 11.98%), the S&P U.S. Issued Investment Grade Corporate Bond Index (up 7.71%) and the S&P China Government Bond Index (up 10.35%). Yet the global yields remained low, i.e. the yield-to-worst of the…
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Asia Fixed Income: 2014 Pan Asia Report Card
As the global yields remain low, many yield-hungry investors have turned to Asia for yield pickup and portfolio diversification. Exhibit 1 lists the yield-to-worst of the ten local currency bond markets tracked by the S&P Pan Asia Bond Index. Exhibit 1: The Yield-to-Worst of the Pan Asian Bond Indices Reflecting the strong demand and continuous…
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