Sentences with phrase «high yield bonds generally»

The American Century High Income Fund has typically invested at least 80 % of net assets in a portfolio of high yield bonds generally rated below investment grade by Moody's Investors Services, Standard & Poor's (S&P) Rating Services or Fitch.

Not exact matches

Higher yields generally hurt stock prices by making bonds more appealing to investors.

But keep in mind: More interest rate sensitive bonds generally have higher yields, so moving to a shorter duration investment could result in less income.

Each fund has a stated objective, generally focusing on a particular sector, such as corporate or Treasury bonds, or broad category, such as investment grade or high yield.

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.

The yields and risks are generally higher than those offered by government and most municipal bonds, and the income is subject to state and federal taxes.

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.

Generally, the higher the duration, the more the price of the bond (or the value of the portfolio) will fall as rates rise because of the inverse relationship between bond yield and price.

Lower - rated bonds generally offer higher yields to compensate investors for the additional risk.

This economic impact works in opposition to the interest rate risk they face: rising rates, which are bad for bonds generally, usually accompany a strong economy, which is good for high - yield bonds; falling rates, which are good for bonds overall, usually accompany a weak economy, which is bad for high - yield bonds.

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 investment grBond: Invest generally in corporate bonds rated below investment grade.

Also, stocks are volatile and generally the riskiest assets, with the possible exception of credit default swaps, high - yield «junk» bonds, and other similar assets.

Generally, UITB focuses on investment - grade securities, however the fund is allowed to place up to 25 % of the portfolio in high - yield bonds.

Of course, the coupons paid by high yield bonds are generally higher than what Treasury bonds of similar maturity would pay.

However, an aspect of leveraged loans that was not developed in this article is that the loans are secured by the assets of the operating company and the terms are usually superior to those of high - yield bonds, which are generally unsecured.

Of course, the coupons paid by high yield bonds are generally higher than what Treasury bonds of similar maturity would pay.

Because bonds with longer maturities have a greater level of risk due to changes in interest rates, they generally offer higher yields so they're more attractive to potential buyers.

Because these bonds aren't quite as safe as government bonds, their yields are generally higher.

Bond exchange - traded funds (ETFs) and mutual funds are generally yielding in the 2 % range for lower risk options, while higher yields can be earned from less credit - worthy bond portfolBond exchange - traded funds (ETFs) and mutual funds are generally yielding in the 2 % range for lower risk options, while higher yields can be earned from less credit - worthy bond portfolbond portfolios.

High - yield bonds generally have a higher credit risk, because of their lower credit rating than traditional bonds.

Because municipal bonds seek to provide tax - free income, they have generally offered higher yields than their taxable counterparts.

High - yield, lower - rated («junk») bonds generally have greater price swings and higher default risks.

Because high - yield bonds generally have a substantial correlation to equities, it could be expected that the portfolio's beta would be approximately between 1 --(0.15 + 0.10 + 0.05) = 0.7 and 1 --(0.15 + 0.10) = 0.75, which it was at 0.73.

But high valuations and a strong rally in 2016 could see some profit taking in the high yield sector, so we generally prefer investment grade bonds.

Intermediate strategies are generally the core bond position offering a balance between higher yields in exchange for more interest rate risk.

But I'd be wary of venturing, as some investors seeking higher yields do, into high - yield, or junk, bond funds, as they're generally more volatile than investment - grade funds and don't hold up as well in periods of economic and market stress.

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.

But keep in mind: More interest rate sensitive bonds generally have higher yields, so moving to a shorter duration investment could result in less income.

We also use high yield corporate bonds and that's generally been a very strong performer but it did slip within the 3rd quarter and, for the year to date, high yield corporate bonds are down 3.7 %.

Lower - rated bonds generally offer higher yields to compensate investors for the additional risk.

High - yield bonds, also known as «junk bonds,» generally have a greater risk of default, which increases the risk that an issuer may be unable to pay interest and principal on the issue.

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.

Each fund has a stated objective, generally focusing on a particular sector, such as corporate or Treasury bonds, or broad category, such as investment grade or high yield.

High - yield municipal bonds have generally provided less interest - rate sensitivity and higher income relative to higher - quality muni bonds.

High yield securities are generally rated below investment - grade and are commonly referred to as «junk» bonds.

Given similar credit profiles, a shorter maturity security will generally pay you a lower interest rate, but you'll be taking on less risk than if you invested in a longer dated bond that should pay a higher yield.

In addition, bonds with higher yields are generally less affected by movements in short - term interest rates.

Also, property stocks typically offer higher yields than the broad equity market, they may serve as an effective inflation hedging tool, and they may help diversify a portfolio due to their generally low correlations to stocks and bonds.

Corporate bonds tend to carry a higher level of risk than government bonds, but they generally are associated with higher potential yields.

Generally speaking, the constituents are of higher quality than those of traditional corporate indices such as the S&P U.S. Investment Grade Corporate Bond Index and the S&P U.S. High Yield Corporate Bond Index.

High yield bonds are generally issued by entities which are in financial distress.

Non-IG bonds generally attract investor interest through their higher yields.

This means that securities that generally do well in a solid growth backdrop, such as stocks and high - yield bonds, are likely to underperform as they are dependent on a level of growth to support their valuations.

But 10 years after retirement, retirees with less remaining real wealth than the 2000 retiree faced much better market conditions in terms of lower cyclically - adjusted price - earnings ratios, higher dividend yields, and generally higher bond yields.

Given these circumstances, a bond ETF investor has to look at riskier propositions like bond funds with higher duration (i.e. a measure of interest rate risk) since bond funds targeting the higher end of the yield curve generally have higher rates of interest attached.

When that happens, a firm's already issued bonds will generally fall in price as investors demand a higher yield for the new risks associated with holding that bond.

When considering these dynamics, keep in mind that bond prices and yields have an inverse relationship, so increased demand generally drives bond prices higher and yields lower, and vice versa.

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.

Edit in response to comment: Corporate bond correlation with stocks is positive but generally not very strong (except for high - yield junk bonds) so while they don't offset stock volatility (negative correlation) they do help diversify a stock portfolio.