Sentences with phrase «although high yield bonds»

Interest rate risk Although high yield bonds have relatively low levels of interest rate risk for a given duration or maturity compared to other bond types, this risk can nevertheless be a factor.

Not exact matches

And, although higher yields result in declining bond prices, they can lead to higher income in the longer term.

Although the bond market is also volatile, lower - quality debt securities, including leveraged loans, generally offer higher yields compared with investment - grade securities, but also involve greater risk of default or price changes.

Although municipal bond yields are generally lower than taxable bond fund yields, some investors in higher tax brackets may find they have a higher after - tax yield from a tax - free municipal bond fund investment instead of a taxable bond fund investment.

It is therefore not yet clear (although clarity could develop in the coming weeks) that we are at a tipping point from which we will see bond yields march dramatically higher.

Although decades of history have conclusively proved it is more profitable to be an owner of corporate America (viz., stocks), rather than a lender to it (viz., bonds), there are times when equities are unattractive compared to other asset classes (think late - 1999 when stock prices had risen so high the earnings yields were almost non-existent) or they do not fit with the particular goals or needs of the portfolio owner.

Additionally, a holder of a TIPS bond is impacted by inflation; if inflation rises the holder could receive both higher income and a higher principal payment at maturity (although it should be noted that TIPS typically have lower yields than conventional fixed rate bonds).

Although default risk is typically low, there are high - yield municipal bond funds that increase credit risk.

The conditions have fueled a rally in Portugal's sovereign bonds so far this year, although they remain the second - highest yielding bonds in the eurozone, behind those of Greece.

Although many have moderate credit risk, there are high - yield options that increase default risk (see high - yield bond funds).

Remember this is a high yield bond not an equity investment, although at Warren's option it may become one.

Fixed lending rates on housing and business loans have also risen over recent months in response to higher bond yields, although they too remain below the average of the past decade.

Although long - term bond yields have retreated a bit this week, they remain significantly higher than they were a month ago.

Although longer - term bonds offer higher yields, they don't necessarily offer enough of a return premium to justify the higher risk when compared to short - term bonds.

Although recently rising prices for stocks, high - yield bonds, commodities and other riskier assets would suggest otherwise, investors remain skittish over the still unresolved and quite concerning risks facing financial markets, such as the U.S. presidential election, the potentially prolonged post-Brexit renegotiations, Italian bank solvency and a slowing China.

These bonds are typically high - quality and very liquid, although yields may not keep pace with inflation.

Although most investors diversified beyond this model and incorporated small caps, foreign stocks, high yield bonds, and perhaps something more exotic like REITs or commodities, a simple mix of 60 % S&P 500 and 40 % Barclays U.S. Aggregate Bond is often the shorthand definition of a balanced portfolio.

Corporate bonds are popular income investing assets because they typically pay higher yields than government securities, although they also carry correspondingly higher risk.

Additionally, a holder of a TIPS bond is impacted by inflation; if inflation rises the holder could receive both higher income and a higher principal payment at maturity (although it should be noted that TIPS typically have lower yields than conventional fixed rate bonds).

As higher yields become available in safer vehicles like government bonds, CDs (although you have protection with Flex CDs), money markets, etc., and interest rates are perceived to continue upward, cash leaves high yield investments, driving the yields higher but sending the share price lower.

Although the bond market is also volatile, lower - quality debt securities including leveraged loans generally offer higher yields compared to investment grade securities, but also involve greater risk of default or price changes.

Although there has been a variety of writers and talkers like myself who have talked about «canaries in the coal mines» — high yield bonds, small caps, commodities, foreign / emerging stocks — the discussions are largely dismissed when U.S. large - caps turn upward.

Bond funds tantalize you with suggestions of still - higher yields, although in their small print they remind you that «the value of your shares will fluctuate.»

Although default risk is typically low, there are high - yield municipal bond funds that increase credit risk.

the relationship between interest rates and time, determined by plotting the yields of all or as many bonds of similar credit quality (eg: Treasuries or AA - rated Corporates), against their maturities; yield curves typically slope upward since longer maturities normally have higher yields, although it can be flat or even inverted; the Fixed Income Search Results Scattergraph shows several smoothed yield curves for different fixed - income product types and credit qualities; these are based on bonds that Fidelity recognizes and are not equal to the entire universe of bonds, which is significantly larger than the number of bonds offered by Fidelity on any given day

Although many have moderate credit risk, there are high - yield options that increase default risk (see high - yield bond funds).

Although the bond market is also volatile, lower - quality debt securities, including leveraged loans, generally offer higher yields compared with investment - grade securities, but also involve greater risk of default or price changes.

Although the yield may be higher on preferred stocks than bonds, the two asset classes have almost nothing in common.

Although the prospect of earning higher yields will appeal to many investors, rising rates also pose a threat in the near term: They devalue older, lower - yielding bonds, as well as some stocks and other securities that rise and fall largely in tandem with the fixed - income market.

Although the implied portfolio yield of these model portfolios do not seem very high, they arguably offer up a truer look at the bond market.

Zero - coupon bonds Zero - coupon bonds are relatively rare in the high - yield market, although there are many zero / step - up bonds.

The yield on the 10 - year Treasury note — a bedrock of global financial markets — has been rising since tax legislation was proposed in the fall of 2017, and the yield reached a four - year high of 2.85 % on the day the jobs report was released.6 — 7 Although the Tax Cuts and Jobs Act was generally welcomed on Wall Street, bond traders have been concerned that increased Treasury sales to pay for the $ 1.5 trillion tax cuts will erode bond prices.

Remember this is a high yield bond not an equity investment, although at Warren's option it may become one.

Although a few high - yield bonds are listed on the New York Stock Exchange, the vast majority of issues trade in the over-the-counter (OTC) market.

Although high - yield bonds are issued in various packages, most new bonds share some basic characteristics.