flight to quality


Also found in: Acronyms.

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 ?
again benefits from a flight to quality as global investors look towards U.S.
Aldar said that a flight to quality among buyers was driving demand.
The paywall method though is unlikely to save all titles; newspapers that run commod- ity news will see further de- clines as the "flight to quality" continues to gather pace with the market deciding which con- tent is worth paying for.
A bespoke constructed, three bedroom 2007 character style detached house which the website claims will undoubtedly find flavour with the growing number of local as well as national purchasers who are currently exhibiting a distinct 'flight to quality'.
It was a 'flight to quality' for the tenants in Dubai as an increased supply of top-class quality, affordable accommodation, particularly in the apartment sector provided the catalyst for considerable tenant movement across the emirate in Q4, the report stated.
It said it had benefited from a "flight to quality" after the failure of a number of smaller tour operators and airlines, as well as from the return to more normal weather conditions in northern Europe.
76% * The bank 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 tension * One of the few indigenous banks in the region with the capacity to structure and underwrite large capital-market transactions * NBK's management is characterised by its strength and depth, as well as its clear strategy and vision The credit rating agency Moody's has released its latest credit analysis report for the National Bank of Kuwait.
Smith adds, "There's a flight to quality occurring with a lot of capital chasing very few deals.
Treasury securities, due to a flight to quality as investors worldwide sought shelter from the Greek debt crisis, benefited U.S.
One of Britain's leading equine property agents George Windsor-Clive, of the Wiltshire-based Windsor-Clive International, said that generally there had been "a flight to quality".
"The 'flight to quality' trend, witnessed in Dubai over the past six to nine months, continues to be driven by value-conscious middle-income end-users and families focused especially on value and size," Jesse Downs, Director of Research and Advisory Services at Landmark Advisory said in its 'Sales and Leasing guide for the Dubai market'.
"It makes me think there is a huge flight to quality going on that hasn"t hit FX yet...perhaps a bit of a warning sign." The dollar, which often rises in times of increased uncertainty and worries about global growth, gave up early gains against a basket of currencies, while the commodity-linked Australian dollar benefited from the strong gold price.