Required yield

(redirected from Required Yields)

Required yield

Generally referring to bonds; the yield required by the marketplace to match available expected returns for financial instruments with comparable risk.

Required Yield

In securities, the minimum acceptable yield at a given level of risk. Different investors have different reasons for choosing their required yields. Normally, a person's or institution's cost of capital determines it. For example, an investor may also carry a debt with a high interest rate; if an investment does not meet a required yield, it would make more sense for the investor to pay down his/her debt. The required yield is also related to the amount of risk an investor is willing to accept. One with a portfolio consisting largely of bonds will generally have a lower required yield than one whose portfolio contains mainly stocks. See also: Markowitz Portfolio Theory.
References in periodicals archive ?
Conservation agriculture increased crop productivity and households produced their required yields on smaller areas, using fewer resources, such as land, labour and inputs.
While this reflects the extremely low interest rate environment we are currently experiencing, it is also a testament to the low required yields demanded by investors.
Delixivia is suitable for a whole range of extended cooked meats and enables manufacturers to achieve required yields and meat contents.
This scenario, while giving consideration to market indicators, is one whereby greater emphasis is placed on the investor's required yields.
Obviously, as mortgage bankers, any product or program we developed to meet consumer and Realtor/builder needs also had to be structured within secondary market guidelines and required yields.
After considerable work by Goldome's secondary marketing group, a single-note product called "MaxiMiser" was developed, required yields were determined, and an investor was secured.
The product provides the opportunity to produce required yields and meat contents in a wide range of extended cooked meats, without the need to use phosphates and gums.
Overly pessimistic rent projections (which decrease values) are offset by overly optimistic risk assessment (which decreases required yields and increases values).
o~) 9% Terminal capitalization rate 4% Selling expenses (B) 12% Required yield on all equity acquisitions (y) 10% Expected holding period in years (N) Indicated Market Value Under Four Alternative Scenarios: $ 9,768,085 Assuming current rental income increases at the rate of general inflation $11,721,702 Assuming current year EGI of $1,200,000 and subsequent increases at rate of general inflation $11,195,958 Assuming current rental income grows at the rate of general inflation for 6 years then "spikes" 20% in year 7 $11,524,940 Assuming rental income grows at rate of general inflation plus 3.
This is only possible, however, if information about the investor's required yields is provided.

Full browser ?