Translation of "Renditeniveau" in English

The attractive yield level was a key source of appeal for investors.

Quantifying the impact that the central banks have on yields has become a trickier business.

The historically low yield level has led to a strong shift between the various groups of investors in German mortgage bonds, the Pfandbriefe.

The IRR level, still high compared to Central European countries, is offset by a concomitant higher risk.

In the eurozone, the unconventional measures taken by the ECB have played a key role in determining the yield level.

This level should normally be set above the upper bound referred to in paragraph 27 for Tier 1 capital instruments [24].

Hypo Tirol will considerably reduce its balance sheet and commits, in particular, to limit certain types of loans and to do new business only above a certain profitability level.

We continue to favour companies without excessive debt levels capable of generating attractive returns on free cash flow in the long term.

A 2015 study from the University of Southern California Marshall School of Business that analyzed the costs of trading bonds, known as the bid-ask spread, estimated total transaction costs for the 12 months prior to March 2015 of $26 billion.[4] This is especially significant when considered relative to the overall level of Treasury yields and credit spreads.

The additional bond purchases shield the yield level against upward pressure from across the Atlantic caused by the looming divergence of US and eurozone monetary policy.

For the past financial year, the annual bonus was also linked to the target for the financial year determined by the Supervisory Board (derived from the level of return targeted for the medium term and the growth targets), the actual result compared with the prior year, the combined performance of the Board of Management members, additional non-financial sustainability-related targets for the Board of Management as a whole and, as a possible individual reduction component, the non-achievement of compliance targets.

Compared with other asset classes, however, despite the decreases the level of returns from retail properties remains attractive to investors who value investments in convenience shops and food retail due primarily to their relatively high stability and long-term security.

The yields on long-term bonds no longer tie in with fundamental economic data like inflation and economic growth.

This happens in order to attempt to ensure that refinancing maturities remain at an acceptable yield for issuers.

Apart from this sizeable kickback risk from today's very low yields, we expect long-term interest rates to remain relatively low in historical terms for some time to come.

In this environment, companies are incentivised to issue debt at unusually low yields, and are encouraged to allow cash to leak from the business in the form of distributions to shareholders and coupon payments to creditors.

For instance, it is questionable whether the present Italian yield level (e.g. below 1.5% on 10y government bonds) adequately reflects the risks of a debt mountain of over 130% of GDP.

As sovereign bonds are offering historically low yields, corporate bonds have turned into a significant investment alternative in the present market conditions.

The outcome of the major changes is that the sector (comprising universal banks as well as specialist institutes) will have to get used to the fact that lower yield levels only will be achievable in the long term compared with the earlier normal circumstances.

In recent years, most market participants have been surprised by the persistently low level of yields globally, with a great part attributed to the effects of demographics, productivity growth, and the demand for safe assets.

Our econometric model using traditional fundamental factors such as inflation, economic growth and key rates would, without the unconventional central bank monetary policy, suggest a yield level of 3% for theUSand marginally lower forGermany.

The move follows this year’s heavy IG supply, which has lifted the premium demanded by investors, as well a dearth of HY issues as investors are more reluctant to buy issues at low yield levels.

The third issue arises from the two aforementioned factors: all market participants have to adjust to the fact that, in the long term, the yield levels achievable will be lower compared with the "old normal" prior to the financial crisis, albeit with the same degree of risk.