Zero Yield on Treasurys Helps HY… Eventually

Sheahan, Matthew
August 2011
High Yield Report;8/15/2011, p11
The article discusses the decision of the U.S. Federal Reserve to keep interest rates low until 2003. On August 9, 2011, the Federal Open Market Committee announced that basic interest rates, the federal funds rate, will be kept between zero and 0.25 percent until mid-2013, and maintain the policy of reinvestment of principal payments from securities holdings. According to Axel Merk, president and chief investment officer (CIO) at Merk Investments, the decision lowered the yield curve.


Related Articles

  • Federal Reserve leaves interest rates unchanged.  // Chain Drug Review;9/28/2015, Vol. 37 Issue 15, p12 

    The article reports on the issue concerning the interest rates, the status of the U.S. Federal Reserve policy, and the role of the rate-setting Federal Open Market Committee (FOMC).

  • Fed Officials Stress Gradual Pace of Rate Rises After Liftoff. Matthews, Steve; Boesler, Matthew // Financial-planning.com;11/12/2015, p8 

    The article talks about the observations of the Federal Open Market Committee (FOMC) of the U.S. Federal Reserve that only after interest rates are increased will the policy be gradually tightened and discusses the stimulative nature of the prevailing monetary policy stance.

  • Unhedged Commentary: High Yield Has High Potential. Peskind, Jeffrey // AR Magazine;Oct2013, Vol. 5 Issue 10, p20 

    The author indicates that junk bonds are a sector of the fixed-income market that offers an excellent opportunity for investors seeking yield. He argues that the best risk-return on the U.S. high-yield bond market is with midcap and smaller issues, specially those less than 600 million U.S....

  • Interest Rates Have Responded to the Fed's New Language. Clark, Todd; Lindner, John // Economic Trends (07482922);Oct2011, Vol. 11 Issue 5, p2 

    The article focuses on the response of interest rates on the policy action of the Federal Reserve in the U.S. It notes that the decision of the Federal Reserve to establish a policy action to keep interest rates extremely low and the move of the Federal Open Market Committee (FOMC) to add the...

  • This Twist Doesn't Have the Right Moves. Cunningham, Steven R. // Research Reports: American Institute for Economic Research;10/3/2011, Vol. 78 Issue 17, p1 

    The article focuses on the Maturity Extension Program and Reinvestment Policy, also known as the Operation Twist of the Federal Open Market Committee (FOCM) of the U.S. Federal Reserve. It says that the program aims to reduce longer-term interest rates to stimulate the borrowing in private...

  • The Federal Reserve's Balance Sheet and Earnings A primer and projections. Carpenter, Seth; Ihrig, Jane; Klee, Elizabeth; Quinn, Daniel; Boote, Alexander // Working Papers -- U.S. Federal Reserve Board's Finance & Economi;2013, preceding p1 

    Over the past few years, the Federal Reserve's use of unconventional monetary policy tools has led it to hold a large portfolio of securities. The asset purchases are intended to put downward pressure on longer-term interest rates, but also affect the Federal Reserve's balance sheet and income....

  • Economic Policy: Monetary Policy - Recent Developments.  // United States Country Monitor;Mar2012, p12 

    The article discusses several developments in the monetary policy in the U.S. in 2012. It cites the changes in interest-rate target announced by the Federal Open market Committee (FOMC). It states that the extension of the interest-rate target shows that the committee lacks readiness to...

  • Rosengren Urges Fed Patience on Raising Rates Amid Low Inflation.  // Bondbuyer.com;1/05/2015, p8 

    The article focuses on the statement issued by Federal Reserve Bank of Boston president Eric Rosengren in January 2015 urging the U.S. Federal Reserve to be patient about raising interest rates to address inflation, speaking at the annual meeting of the American Economic Association in Boston,...

  • Policy put into ACTION. Matthews, Steve; Jamrisko, Michelle // Fort Worth Business Press;6/23/2014, Vol. 26 Issue 24, p16 

    The article focuses on the forecast of the U.S. Federal Reserve officials for their target interest rates until 2016, lowering the estimated rate which reflects a slower growth rate for the country's economy. Topics include the view of the Federal Open Market Committee (FOMC) participants on the...


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics