Sentences with phrase «credit quality»
The phrase "credit quality" refers to the assessment or evaluation of how likely it is for someone or an entity to repay their debts or loans. It indicates the level of risk associated with lending money to them. Good credit quality means they are considered trustworthy and capable of repaying their debts, while poor credit quality implies higher risk and lower trustworthiness in terms of repaying debts. Full definition
High yield bonds are subject to additional risks, such as increased risk of default and greater volatility because of lower credit quality of the issues.
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The types of debt securities held by money market mutual funds are required by federal regulation to be very short in maturity and high in credit quality.
All the holdings are of high credit quality, similar to the bond ETF.
NOTE: High - yield bonds are subject to additional risks, such as increased risk of default and greater volatility, because of the lower credit quality of the issues.
Hence, choose a liquid fund which invests in highest credit quality rated instruments, i.e. AAA rated.
Trying to sell a long maturity, low credit quality bond in a weak market is a worst - case scenario because you have to shop extensively just to get a bid.
Many banks saw improved credit quality in the first quarter of 2011 leading to lower loan loss provisions.
Rating agencies generally consider family leadership a plus for credit quality because those executives are more likely to maintain a long - term perspective reflected in conservative financial policies and decisions.
When constructing a portfolio, it's important to be aware of the overall credit quality of your holdings.
This switch from raising funds in equity markets to bond markets would, other things equal, also tend to raise concerns about credit quality, as corporate leverage would tend to rise.
This is the case for spreads between countries, and between bonds of different credit quality within the same country.
Say you were offered a municipal bond paying 3 % or a corporate bond paying 4.5 % with the same credit quality and maturity.
Having said all that, we're not seeing the traditional early warning signs of credit problems, credit issues, and you virtually always see early signs of reduced credit quality.
The dual coverage from the issuer and the cover pool typically makes covered bonds a high credit quality investment.
He thought their focus should be more on declining credit quality instead.
The tightening economic environment is also fueling concerns over credit quality.
We would recommend retail investors to avoid credit opportunity funds despite their seemingly higher return as well as advise investors to check the portfolio credit quality of other categories of funds also.
For many credit cards, especially the most lucrative rewards cards, the cards are offered only to consumers that meet a minimum credit quality.
My question is, is there any plans to sort of reach down to some of the lower credit quality borrowers out there?
Or, there are different ways of enhancing credit quality in different industries.
For securities of similar credit quality, you typically get paid the highest interest rate for purchasing the longest maturity security.
We will take them all, subject to you keeping high credit quality standards.
A bond whose credit quality is considered to be among the highest by independent bond - rating agencies.
A bond's rating helps you assess that bond's credit quality compared with other bonds.
This applies to financials as well, but many value investors lost a lot of money on financials because they ignored credit quality near the end of a credit boom.
Credit Quality helps you assess the default risk of an investment.
The second is by varying credit quality: by selecting bonds of lower quality, and therefore higher yields.
Another lesson is that investing for the average investment grade credit quality is good also.
Why not use credit default swap rates to determine credit quality rather than the «official» bond ratings?
This can be low credit quality loans, jumbo or large loans, or commercial loans, among others.
The three interest sensitivity groups are limited, moderate and extensive and the three credit quality groups are high, medium and low.
A short - term municipal bond fund, invested in high credit quality names, can act as a buffer for your riskier investment choices, no matter your age.
See how adjusting credit quality, term and the loan amount may affect your choice for a loan provider.
The annual provision for credit losses was at the low end of management's target range reflecting ongoing stable credit quality.
These are bonds paying a high rate of interest because the issuers are of lesser credit quality than government and investment - grade corporate bonds.
This was before the regulators began regulating bond credit quality more strictly.
Maintained excellent credit quality through no defaults on covenant compliance or past due documentation.
Yield curve is a line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity dates.
As credit quality goes down, the risk of default increases.
If the insurance company can handle the lack of incremental income, investing in higher credit quality instruments in tight spread low implied volatility environments can mitigate the risks.
Insurance policies are high credit quality obligations, they don't vary as much as bonds that are risky.
Except, in this case, that pricing power is passive; there is no consideration for things like credit quality or the fair value price of the underlying constituents.
They have top credit quality in giving the investor with increased returns.
Part of my argument is that the general credit quality, and ability to make any down payment, in the remaining pool of potential first time buyers is dwindling.
Always remember, higher the coupon / interest rate on the bond; lower is its inherent credit quality.