U.S. Treasury Yield and Dividend Yield data is Bloomberg.
Supply data for U.S. Treasuries, Agency Issuance, Mortgage-Backed Securities, and Corporates is SIFMA.
Political Risk is the risk that an investment's returns could suffer as a result of political changes or instability in a country. Instability affecting investment returns could stem from a change in government, legislative bodies, other foreign policy makers, or military control.
Political risk is also known as "geopolitical risk," and becomes more of a factor as the time horizon of an investment gets longer.
Securities Industry And Financial Markets Association (SIFMA) is an association that represents firms of all sizes in all financial markets in the U.S. and worldwide. SIFMA is committed to enhancing the public's trust and confidence in the markets, delivering an efficient, enhanced member network of access and forward-looking services, as well as premiere educational resources for industry professionals and the investors they serve.
Fracking is a slang term for hydraulic fracturing. Fracking refers to the procedure of creating fractures in rocks and rock formations by injecting fluid into cracks to force them further open. The larger fissures allow more oil and gas to flow out of the formation and into the wellbore, from where it can be extracted.
Fracking has resulted in many oil and gas wells attaining a state of economic viability, due to the level of extraction that can be reached.
Yield is the annual interest received from a bond and is typically expressed as a percentage of the bond's market price. Dividend yield is equal to the dividend divided by the stock price. Dividend yield is one measure of a stock's value. A high dividend yield may indicate that a stock is relatively inexpensive.
Mortgage-backed Securities (MBS) are susceptible to prepayment risk. High-yield securities, sometimes called junk bonds carry increased risks of price volatility, illiquidity, and the possibility of default in the timely payment of interest and principal. No investing strategy can overcome all market volatility or guarantee future results.
Risks to Consider
The value of an investment in fixed-income securities will change as interest rates fluctuate and in response to market movements. As interest rates fall, the prices of debt securities tend to rise. As rates rise, prices tend to fall. The value of investments in equity securities will fluctuate in response to general economic conditions and to changes in the prospects of particular companies and/or sectors in the economy.
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