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 ?
Aldar said that a flight to quality among buyers was driving demand.
This flight to quality and safety by foreigners is following the same pattern we saw when the U.
Moreover, according to Moody's, NBK "benefits from strong brand-name recognition and an excellent reputation, particularly in its domestic market, and should benefit from a flight to quality in the event of market tensions".
Samsung Fire is expected to maintain its excellent market position, supported by the prolonged flight to quality of Korean consumers, amid intensifying market competition and ongoing deregulation.
They told the senior housing and health care industries that they were "embarking on a flight to quality.
And so they exposed themselves to the classically Keynesian event: a flight to quality.
But another important factor has been drops in mortgage rates sustained by investors' flight to quality from Asian to U.
demand of flight to quality to insurers with excellent financial strength," states Chris Duca, President of Navigators Pro, a division of Navigators Management Company, Inc.
The increase is being driven by a number of factors, such as the flight to quality within Dubai and the Northern Emirates and an inflow of capital from international and regional investors and corporations amid the regional uncertainty, the UAE-based property management company said ahead of its first quarter report.
We're seeing a flight to quality as companies are in the market to trade up.
Nabil Maroof, NBK Capital's Managing Director of Asset Management, said that "Investor flight to quality has driven the demand for NBK's extensive expertise and conservative approach which emphasizes on attractive returns and capital preservation.