flight to quality

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Flight to quality

The tendency of investors to move toward safer investments (often government bonds) during periods of high economic uncertainty.

flight to quality

A movement by investors to purchase higher-quality securities. For example, an investor might sell bonds rated lower than BBB and invest the proceeds in bonds rated AA or AAA. A flight to quality occurs when investors expect a deterioration in political stability or in economic activity.
References in periodicals archive ?
Historically, the US bond market and the US dollar<br /> have benefited from a flight-to-quality.
The price of the benchmark 10-year Japanese government bond rose Friday as declines in Tokyo stocks encouraged flight-to-quality moves.
AIG's Greenberg himself emphasized the flight-to-quality aspect of AIG's growing businesses in Japan and the rest of the Asia-Pacific region in a speech at the company's annual shareholders meeting (BestWire, May 14, 2003).
With a growing economy, China is currently experiencing a flight-to-quality within their privatized education sector.
605 percent, also weighed down by flight-to-quality buying prompted by continued declines in Tokyo stocks.
Size and flight-to-quality trends benefited the larger, well-established surplus lines carriers during the hard market, with the top 25 groups commanding an 82.
620 percent, also affected by investors' flight-to-quality buying after seeing falls in Tokyo stocks.
Size and flight-to-quality trends have benefited the larger, well-established surplus lines carriers, with the top 25 groups commanding an 85% share of the market.
The yield on the benchmark 10-year Japanese government bond fell sharply to end at a three-month low Tuesday as flight-to-quality buying grew in light of recent weakness of global stocks.
The yield on the benchmark 10-year Japanese government bond briefly fell to a fresh three-month low Wednesday morning as lingering cautions over global stocks' recent weakness fueled flight-to-quality buying.
The yield on the benchmark 10-year Japanese government bond fell to a fresh three-month low Wednesday as lingering cautions over global stocks' recent weakness fueled flight-to-quality buying.
Underwriters Reinsurance continues to benefit from flight-to-quality due to its reputation for prudent risk selection and overall capital adequacy.