TIPS Beating Treasuries for Fourth Year Seen With Fed at Zero

TIPS Beating Treasuries for Fourth Year Seen With Fed at Zero
News from BusinessWeek:

January 29, 2012, 8:35 PM EST

  • Treasury Five-Year Yield Falls to Record Low on Fed Strategy
  • Treasury Five-Year Yield Falls to Record as GDP Misses Forecast
  • Fed Interest Rate Pledge May Send Investors Into Riskier Choices
  • Treasuries Decline, Snap Two-Day Gain Before U.S. Report on GDP
  • Treasury Auction Hands Investors $ 238 Million as Fed Eases

By Daniel Kruger and Cordell Eddings

Jan. 30 (Bloomberg) — Bonds that pay negative yields are turning into the hottest part of the $ 9.94 trillion market for U.S. Treasuries, a sign of shaken investor confidence in an economy the Federal Reserve says…………… continues on BusinessWeek

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BKI Investment posts 5.2% H1 profit rise
News from Ninemsn:

BKI Investment Company Ltd has posted a 5.2 per cent lift in first-half profit and expects more pensioners and retirees to snap up its shares for the strong yield.

The listed investment company increased its interim net profit to $ 16.42 million for the six months to December 31, 2011, thanks to a 12.4-per cent surge in ordinary dividend income to $ 14.3 million.

Operating income jumped 10.5 per cent to $ 14.1 million, pushing earnings per share 9.3 per cent higher to 3.33 cents per share.

Chief executive Tom Millner attributed the result to the company’s focus on investing in stocks with yield and value characteristics, and a fully-franked special dividend of 15 cents per share from New Hope Corporation.

BKI’s shareholders will pocket an interim fully-franked dividend of 3.2 cents per share, up 6.7 per cent on a year earlier.

Shareholders currently received a grossed up yield of more than 8.0 per cent, making the company a more attractive investment than many fixed interest products which offer rates below 5.0 per cent, Mr Millner said.

“We believe the lower levels of income received from cash and other fixed interest products could be a catalyst for retail investors to search for income within the equities market,” he said in a statement on Monday.

“(The yield from BKI shares) should be a significant boo…………… continues on Ninemsn

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