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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
Summary: Abu DhabiEe's real estate market faced key challenges last year and with flight-to-quality and market corrections continuing this year as well, the market activity was likely to remain subdued during the first half of 2019, said property consultancy firm Cavendish Maxwell.
Annaly's agency mortgage-backed security portfolio could outperform in a cyclical downturn environment as flight-to-quality assets, Shane tells investors in a research note.
* Acuative has leased 6,500 s/f and will relocate its headquarters to Highpoint Corporate Center from another local address in a flight-to-quality play.
"There's a huge amount of flight-to-quality moves right now.
Moreover, where do global investors turn to during periods of great uncertainty which leads to certain flight-to-quality? Historically, the US bond market and the US dollar<br /> have benefited from a flight-to-quality.
'The real estate market is characterised by a large supply of high quality stock at affordable rates, leading to a flight-to-quality trend currently seen across Dubai,' commented Elaine Jones, CEO, Asteco Property Management.
economy indicates investors' 'flight-to-quality' sentiment,'' the dealer said.
Bonnie Tse, head of Premier and Wealth Management, Asia-Pacific, HSBC Hong Kong, said, 'With economic data and uncertainty in equity markets, fund managers will try to be conservative and try to maintain a flight-to-quality approach.
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).
Fund-raising conditions for corporations with lower credit-ratings, however, have become tighter, due to the continued mood of a flight-to-quality caused by increased sensitivity to credit risk.
The flight-to-quality trend continued, as 81 percent of leasing activity this quarter in Northern and Central New Jersey occurred in Class-A space.