Sentences with phrase «bonds offer stability»

Not exact matches

Shorter duration bonds, or bonds that mature within three years, can potentially offer a portfolio stability during market volatility.

Bonds may not offer tremendous nominal value, comparatively speaking, in the current market, but they do generally offer peace of mind and stability which, for some, may be more important than they currently realize.

Short - term government bonds generally offer stability and low growth and are the bungee in your portfolio that slows its decline in value when equities plunge.

High - grade dollar - dominated bonds have little role in such a portfolio except to offer diversification and stability.

In the post-Lehman era, bond players have been excessively risk averse, bidding up issues offering even a modicum of stability.

High - yield funds, which seek to maximize yield by investing in lower - rated bonds of longer maturities, offer less stability of principal than fixed income funds that invest in higher - rated but lower - yielding securities.

The main advantage I see in bonds is the stability they could offer if I would be withdrawing from my portfolio.

A review of high - yield debt investments should cover: (1) analysis of the industry, including growth rates, special risks and leading companies; (2) analysis of the bond issuer, including the company's position in its industry; new products; management stability; the outlook for growth in revenues and cash flow as captured in Earnings Before Interest, Taxes, Depreciation and Amortization, also called EBITDA; value of corporate assets and the debt maturity schedule; and (3) analysis of the issue, including special provisions in the «bond indenture,» covenants protecting the bondholder, use of the money raised in bond offerings, debt seniority, secondary market liquidity and call provisions.

Portfolio construction begins with the most basic allocation between investments that offer a greater chance of appreciation (stocks) and those that provide portfolio stability (bonds).

Although bond funds are attractive to investors because of their relative stability and diversification, many of the more conservative offerings in this category offer little or no protection from inflation.