Sentences with phrase «bonds rated below»

The fund may also invest up to 10 % of its net assets in bonds rated below investment grade (sometimes called junk bonds) or their unrated equivalents as determined by the investment adviser.

The subaccount seeks high current income by investing principally in corporate bonds rated below investment grade.

Any bonds rated below BBB are considered below - investment - grade bonds.

To a lesser extent, it has also gone into high - yield mutual funds that buy bonds rated below investment grade, known as junk bonds to those who are dubious of them.»

The Bloomberg Barclays High - Yield Bond Index is an unmanaged index of corporate bonds rated below investment grade by Moody's, S&P or Fitch Investor Service.

High yield bonds (bonds rated below investment grade) may have speculative characteristics and present significant risks beyond those of other securities, including greater credit risk, price volatility, and limited liquidity in the secondary market.

TAXABLE BOND FUNDS: B - CHY - Corporate High - Yield Bond: Invest generally in corporate bonds rated below investment grade.

About half of institutional investors could already accept bonds rated below A - in their portfolios.

Bonds rated below investment grade may have speculative characteristics and present significant risks beyond those of other securities, including greater credit risk and price volatility in the secondary market.

About 90 % of investment organizations also had a rule against buying a bond rated below «A» or triple «B,» Marks said.

Not exact matches

But, «the U.S. and the Bank of England have gone to more extremes because they have interest rates below the Bank of Canada's, and they've also been buying bonds to lower longer term interest rates,» Shenfeld added.

Rates on government bonds in Germany and Switzerland fell further into negative territory after Brexit, while yields on 10 - year Treasuries dropped below 1.5 % and touched record lows.

But with the unemployment rate, at 6.2 percent, well below its recession - era peak of 10 percent, and inflation showing no signs of falling further, the Fed has begun to trim its monthly bond purchases, aiming to end them completely by October.

By secular reflation, we mean at least a decade in which short - and long - term interest rates stay habitually below nominal GDP growth and high grade bonds are not really bonds any more: delivering trend returns that are close to zero or even negative.

² About 37 % of the 129 convertible bonds surveyed were rated below investment grade.

Notley and Ceci see no real crisis, despite warnings from bond - rating agencies who could again slash Alberta's credit rating, already below its formerly sterling AAA.

And with interest rates at all - time lows and stocks at all - time highs, there are many who expect that not only will a 60/40 portfolio deliver below average returns, but that bonds might not provide the protection they once did.

The chart below shows that the U.S. 10 - year inflation breakeven rate, or the bond market's expectation for the average inflation rate over the next 10 years, is the highest since 2014.

Below is another visual supporting the fact that inflation, and not rising interest rates, is the real enemy of bonds.

This is, however, still below the comparable figures in the United States, where 70 per cent of corporate bonds on issue are rated below A +.

Mr. Draghi said Thursday that the bond buying would continue through September 2016 or «until we see a sustained adjustment in the path of inflation which is consistent with our aim of achieving inflation rates below, but close to, 2 percent over the medium term.»

Although bonds rated at AAA still dominate, the proportion of new issues of bonds rated A + or below has increased from 15 per cent in 1996 to 30 per cent in 1999 (Graph 8).

Yields on long - term Treasury bonds dropped markedly, and analysts predicted that interest rates on fixed - rate mortgages would soon drop below 5 percent.

One red flag for lenders is that the volume of energy debt rated CCC or below — the weakest ratings among junk bond issuers — has more than doubled to $ 62 billion from a year ago, Fitch said in a June 12 report.

Some 5.7 % of corporate junk bonds from emerging markets are trading at prices below 70 cents on the dollar, more than double the rate for higher - risk U.S. bonds, according to JPMorgan.

Interest - rate risk is generally greater for longer - term bonds, and credit risk is generally greater for below - investment - grade bonds, which may be considered speculative.

The issues are rated below investment grade by bond rating agencies.

Taking the position that the Stock Market is vunerable to rising bond interest rates Goldman issues a warning below.

As Wolf Richter pointed out for Wolf Street earlier this month: «Since mid-December 2016, the Fed has hiked rates four times, in total by 1 percentage point, but over the same period, junk bond yields rated CCC or below have declined 1.5 percentage points as the bonds have rallied.»

The graphic below shows current average interest rates paid for different categories of bonds at different maturities.

Real interest rates implied by the yields on indexed bonds, as well as the real lending rates derived using various measures of inflation expectations, are also slightly below their long - term averages.

The Zweig bond model, explained below, provides a disciplined, rules - based way that may help you better navigate and profit from the up and down trends in interest rates.

Bond ratings go all the way down to CCC - though they are only shown to A in the graphic below.

In February 2014, rating agencies downgraded Puerto Rico's general obligation debt and some related bonds below investment grade, with further downgrades possible.

Bonds rated triple - A (AAA) are the most reliable and the least risky; bonds rated triple B (BB) and below are the most rBonds rated triple - A (AAA) are the most reliable and the least risky; bonds rated triple B (BB) and below are the most rbonds rated triple B (BB) and below are the most risky.

The GIC, a group of seasoned investment professionals who meet regularly to review the economic and political environment and asset allocation models for Morgan Stanley Wealth Management clients, expects the economy — as measured by gross domestic product, or GDP — to grow, but at below the rate to which we have become accustomed, based on prior second - stage recoveries; stock and bond returns will likely follow suit.

This includes negative real interest rates, which drop the yield on a government bond below zero.

Short term interest rates remain near zero, 10 - year bond yields have declined below 2 %, and our estimate of 10 - year S&P 500 total returns has declined to just 1.4 % (see Ockham's Razor and the Market Cycle for the arithmetic behind these historically - reliable estimates).

These portfolios primarily invest in U.S. high - income debt securities where at least 65 % or more of bond assets are not rated or are rated by a major agency such as Standard & Poor's or Moody's at the level of BB (considered speculative for taxable bonds) and below.

We have a rule which says we can't accept bonds below a certain threshold, explains Mr Draghi, but the ECB decided that if some conditions are in place, then the bank can expect the bonds will be rated above this level.

Admittedly, there has been a visible flight from erstwhile «risk - free» assets in other areas (such as the Eurozone) to AAA - rated Commonwealth bonds (see charts below).

Interest - rate risk is greater for longer - term bonds, and credit risk is greater for below - investment - grade bonds.

We expect income - starved and safety - seeking investors to keep chasing relatively scarce G3 bonds — holding rates well below historical averages.

Indeed, world currency markets have roared back to life lately after years of hibernation, with a handful of monetary policy surprises — including the European Central Bank (ECB)'s bigger - than - expected bond buying program and the Federal Reserve (Fed)'s delay in raising rates — leading to rising volatility, as the chart below shows.

An AA + rating is generally one step below the highest rating (AAA) assigned to the bonds of an issuer by credit rating agencies.

An alternative, and perhaps more likely, interpretation is that the market expects that the target cash rate will remain below its average over recent years for some time, and this expectation is reflected in bond yields.

High - yield corporate bonds are rated below investment grade and are subject to greater risk of default, which could result in loss of principal — a risk that may be heightened in a slowing economy.

By itself, this below - average spread might normally be taken to imply slightly tighter - than - average conditions, although a more likely interpretation is that bond yields have been held down by offshore bond - market developments reflecting expectations that short - term interest rates around the world will remain below average for some time.

But with yields having fallen below the rate of inflation, holding bonds devalues their reserves.

Among the explanations that have been put forward are the increased credibility of central banks in controlling inflation (inflation rates remain below 3 per cent across the developed world), the low level of official interest rates in the major economies reflecting low inflation and the continuing weakness in some economies, a glut of savings on world markets particularly sourced from the Asian region, and changes to pension fund rules in some countries which are seen as biasing investments away from equities towards bonds.