Sentences with phrase «high corporate bond rates»

High corporate bond rates raise interest costs for corporations, reducing profits, and raising discount rates (cost of equity capital).

Not exact matches

Fill the bulk of your portfolio with a combination of high - rated bonds (weighted toward corporate, rather than government, debt) and high - quality, dividend - paying equities, and you likely won't take a hit.

That relationship has played out this year — as interest rates have risen since January, the HYG high yield corporate bond ETF has come under pressure.

But it also launched two new schemes, one to buy 10 billion pounds of high - grade corporate bonds and another — potentially worth up to 100 billion pounds — to ensure banks keep lending even after the cut in interest rates.

The two signals flashing red are volatility shocks, and spreads on the highest rated corporate bonds.

Low interest rates have given a huge incentive to shift out of low - risk assets into stocks and corporate bonds in search of higher returns.

The assumed discount rate utilized is based on a broad sample of Moody's high quality corporate bond yields as of the measurement date.

The two largest funds in the segment — the $ 15 billion iShares iBoxx $ High Yield Corporate Bond ETF (HYG) and the $ 9 billion SPDR Bloomberg Barclays High Yield Bond ETF (JNK)-- have faced sizable asset outflows as investors fret over high valuations and rising interest raHigh Yield Corporate Bond ETF (HYG) and the $ 9 billion SPDR Bloomberg Barclays High Yield Bond ETF (JNK)-- have faced sizable asset outflows as investors fret over high valuations and rising interest raHigh Yield Bond ETF (JNK)-- have faced sizable asset outflows as investors fret over high valuations and rising interest rahigh valuations and rising interest rates.

Cumulative inflows into the iShares Short Maturity Bond ETF (NEAR), Floating Rate Bond ETF, SPDR Bloomberg Barclays Short Term High Yield Bond ETF, PowerShares Senior Loan Portfolio, and the Vanguard Short - Term Corporate Bond ETF topped $ 400 million in total for the first session of the week, the highest since the inception date of the most recent member of this product group.

The average tradability score in the Fixed Income: U.S. - Corporate Investment Grade segment is 63 out of 100, with the iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) obtaining the highest rating of 96 out of 100.

The potential for a lower corporate tax rate may also lead to interesting opportunities in BB - rated high - yield bonds.

The Bloomberg Barclays U.S. Corporate High Yield Bond Index covers the universe of fixed - rate, non-investment-grade debt.

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.

Investment grade vs. non-investment grade (high yield) Corporate bonds are generally rated by one or more of the three primary ratings agencies: Standard & Poor's, Moody's, and Fitch.

Franklin Limited Duration Income (FTF) is a closed end fund that seeks high current income and capital appreciation through investment in high yield corporate bonds, floating rate bank loans and mortgage and other asset backed securities.

Most corporate bonds were issued when interest rates were much higher, so the companies have to pay them.

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

For example, investors might use the iShares iBoxx $ High Yield Corporate Bond ETF (HYG) to gain access to greater credit risk through an ETF focused on bonds rated BB and B, and the iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) to gain access to less credit risk through an ETF focused on bonds rated A and BBB.

With bond markets increasingly pricing in higher odds that the Federal Reserve will boost interest rates, it is not surprising that investors are departing corporate bond exchange - traded funds this quarter.

Floating - rate loans have yields and volatility similar to high - yield corporate bonds, with one major difference: As their name indicates, their interest rates «float,» adjusting periodically based on a benchmark rate, typically the London Interbank Offered Rate (LIBrate loans have yields and volatility similar to high - yield corporate bonds, with one major difference: As their name indicates, their interest rates «float,» adjusting periodically based on a benchmark rate, typically the London Interbank Offered Rate (LIBrate, typically the London Interbank Offered Rate (LIBRate (LIBOR).

In terms of equities, the S&P 500 had its best month in four years in October, while booming corporate bond sales continued to meet high demand, appearing to reflect confidence in the strength of the US corporate sector as well as the persistence of low market interest rates.

He also noted that it is a very poor time to buy corporate bonds (high yield bond index yield 4.93 %) and Gundlach sees a negative return for the S&P in 2018 as the rates rout eventually gives the equity market the yips.

-- Income more difficult to provide clients, in a zero rate environment many will suggest high yield corporate bonds and leveraged loans to supplement traditional fixed income but many clients are not willing to sacrifice quality for a higher yield.

The Barclays U.S. Credit Index is the credit component of the Barclays Capital U.S. Aggregate Bond Index, which is a broad - based bond index comprised of government, corporate, mortgage and asset - backed issues, rated investment grade or higher, and having at least one year to maturBond Index, which is a broad - based bond index comprised of government, corporate, mortgage and asset - backed issues, rated investment grade or higher, and having at least one year to maturbond index comprised of government, corporate, mortgage and asset - backed issues, rated investment grade or higher, and having at least one year to maturity.

Higher risk corporate bonds pay higher interest Higher risk corporate bonds pay higher interest higher interest rates.

The iShares Interest Rate Hedged High Yield Bond ETF is an actively managed fund - of - funds that targets USD - denominated corporate high - yield bonds while mitigating interest - rate rRate Hedged High Yield Bond ETF is an actively managed fund - of - funds that targets USD - denominated corporate high - yield bonds while mitigating interest - rate rHigh Yield Bond ETF is an actively managed fund - of - funds that targets USD - denominated corporate high - yield bonds while mitigating interest - rate rhigh - yield bonds while mitigating interest - rate rrate risk.

The Bloomberg Barclays Long - Term Government / Corporate Bond Index is an unmanaged index that includes fixed - rate debt issues rated investment grade or higher by Moody's Investors Services, Standard & Poor's Corporation, or Fitch Investor's Service, in order.

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.

Lower corporate and individual tax rates usually translate to higher rates for municipal bonds.

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.

So while low and negative interest rates across the globe has inspired flows into stocks, emerging market bonds and corporate credit in search of higher yields, keep in mind the high correlations of these assets to oil prices and the advantages of holding actual diversifiers in your portfolio to smooth the ride.

There is an anticipated corporate rating of mid to high BB, an unsecured bond rating of low to high BB and a secured debt rating of low BBB.

The average tradability score in the Fixed Income: U.S. - Corporate High Yield segment is 66 out of 100, with the iShares iBoxx $ High Yield Corporate Bond ETF (HYG) obtaining the highest rating of 94 out of 100.

Roughly half of the ETFs have a higher correlation to treasury bonds and the other half to the S&P 500 Index (i.e., CWB — convertible bonds, JNK — high yield corporate, PFF — preferred stock and XLU — utilities all react to interest rates but are more correlated to the stock market than to treasury bonds).

Since 1970, when they began tracking defaults, the rate is even lower at 0.07 %.2 Compare that to global corporate bonds, which defaulted at a 2.06 % rate in 2016.3 It's important to note that the overall muni rate remained that low despite 2016 having the highest municipal defaults volume on record, all related to Puerto Rico.

The Deutsche X-trackers Emerging Markets Bond Interest Rate Hedged ETF (EMIH), the Deutsche X-trackers Investment Grade Bond Interest Rate Hedged ETF (IGIH) and the Deutsche X-trackers High Yield Corporate Bond - Interest Rate Hedged ETF (HYIH) will begin trading on the Bats exchange on June 9.

Today three Deutsche Bank ETFs — the Deutsche X-trackers Emerging Markets Bond Interest Rate Hedged ETF (EMIH), the Deutsche X-trackers Investment Grade Bond Interest Rate Hedged ETF (IGIH) and the Deutsche X-trackers High Yield Corporate Bond - Interest Rate Hedged ETF (HYIH)-- delisted from the NYSE Arca exchange and listed on Bats» BZX Exchange.

Finance economists have argued that such a high discount rate is imprudent, however, and there have been signs that public accounting standards might move toward the private - sector rules, based on corporate bond and Treasury rates, which could reduce the discount rate to about 5 percent.

As for bonds, you want to own both government and high - quality corporate issues in a range of maturities (although, to protect yourself against the possibility of rising rates, you'll want to keep the average maturity of your overall holdings in the short - to intermediate - term range).

Fixed income sectors shown to the right are provided by Barclays and are represented by the following Bloomberg Barclays Indices — Treasury Inflation Protected Securities: U.S. Treasury Inflation - Protected Securities (TIPS) Index; Floating Rate Loans: US Floating - Rate Note Index (BBB); Asset - backed securities: US Asset - Backed Securities Index; High Yield: US Corporate High - Yield Bond Index; Convertibles: US Convertible Bond Index; Mortgage - backed securities: US Aggregate Securitized MBS Index; Broad Market: US Aggregate Bond Index; Municipals: Municipal Bond 10 - Year Index; Investment Grade Corporates: US Corporates Index

These floating rate bonds are a good alternative to high yield corporate and junk bonds when interest rates are rising.

The Bloomberg Barclays US Corporate High - Yield Bond Index is an unmanaged broad - based market - value - weighted index that tracks the total return performance of non-investment grade, fixed - rate, publicly placed, dollar denominated and nonconvertible debt registered with the Securities and Exchange Commission.

«Many investors are interested in high credit quality bonds, but the supply of AAA - rated corporate debt in the U.S. is very limited,» said Michael L. Sapir, Chairman and CEO of ProShare Advisors LLC, ProShares» investment advisor.

For more information about bonds, see our Investor Bulletins on municipal bonds, corporate bonds, high - yield corporate bonds and interest rate risk.

The S&P China High Quality Corporate Bond 3 - 7 Year Index, an investible index tracks the performance of Chinese corporate bonds within three to seven year tenors and uses more stringent rating criteria, has outperformed its boarder benchmark and returned 5.70 % YTD, as of August Corporate Bond 3 - 7 Year Index, an investible index tracks the performance of Chinese corporate bonds within three to seven year tenors and uses more stringent rating criteria, has outperformed its boarder benchmark and returned 5.70 % YTD, as of August corporate bonds within three to seven year tenors and uses more stringent rating criteria, has outperformed its boarder benchmark and returned 5.70 % YTD, as of August 27, 2015.

So, at the time that the strategy needs the most help, option costs are high (or payouts are chintzy and lapse rates go up), and corporate bond prcies sag due to wider spreads.

«junk bond king» wrote a thesis that two percentage points were enough compensation for the likely higher default rate of a junk bond fund over a corporate bond fund.

Since 1970, when they began tracking defaults, the rate is even lower at 0.07 %.2 Compare that to global corporate bonds, which defaulted at a 2.06 % rate in 2016.3 It's important to note that the overall muni rate remained that low despite 2016 having the highest municipal defaults volume on record, all related to Puerto Rico.

Higher - investment grade corporate bonds, such as those with «AAA» credit ratings, tend to have very low default risk.

As Figure 1 shows, the Bloomberg Barclays US Corporate High Yield Bond Index posted positive returns during rising - rate periods, averaging a return of 8.86 % while the Bloomberg Barclays US Aggregate Bond Index was almost entirely in the red with an average return of -1.41 %.