Sentences with phrase «higher credit quality bonds»

A balance must be struck between limiting risk using shorter duration or higher credit quality bonds versus maximizing investment yield with longer duration or lower credit quality bonds.

Higher credit quality bonds are more expensive but generally deliver reliable returns.

«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.

Do I have high credit quality bonds?

Not exact matches

«Bonds can be a stable reserve of value, or they can be as volatile as stock,» said David Yeske, co-founder of advisory firm Yeske Buie Inc. «I think a lot of advisors are shifting their bond allocations to shorter maturities and higher credit quality.»

All the holdings are of high credit quality, similar to the bond ETF.

In the credit markets, both investment - grade and high - yield corporate bonds had negative returns for the first time in eight quarters, with down - in - quality subsectors in each unconventionally outperforming higher quality ones.

In other words, equity dividends are higher by a third of a percentage points than quality bond yields, and that's before the dividend tax credit and before any capital gains.

Within fixed income, we suggest raising average credit quality, particularly focusing on investments in areas like high - grade corporate and municipal bonds.

We prefer selected subordinated financial debt within European credit and favor high - quality U.S. credit and emerging market debt over government bonds, but credit valuations are elevated across the board.

Further out in the credit quality spectrum, U.S. - based high - yield «junk» bond funds

UK government bonds are the highest credit quality security in the country, and this leg of your portfolio aims to give you security, not returns.

The same could be said for lower - grade, dollar - denominated bonds except the improvement in credit quality brought from accelerating economic growth will partially protect these bonds from the full extent of the losses suffered by high - grade bonds.

By contrast, high - quality bonds such as those found in investment - grade corporate funds like the iShares 1 - 3 Year Credit Bond ETF (CSJ A-89) and the iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD A-66), etc.), or in Treasury portfolios such as the iShares 1 - 3 Year Treasury Bond ETF (SHY A-97) or the iShares 10 - 20 Year Treasury Bond ETF (TLH B - 65), etc.) tend to buffer portfolio volatility to a much greater degree.

High credit risk and history of significant price volatility, especially relative to higher - quality bonds.

NOTE: High - yield bonds are subject to additional risks, such as increased risk of default and greater volatility, because of the lower credit quality of the issues.

High - yield bonds are issued by corporations with lower credit quality ratings.

The result is a selection of bonds with higher volatility, lower credit quality, and higher yield than the broader high - yield market.

Once you know that you can make an informed decision as to whether you will earn a higher return from a tax free state or national municipal bond fund or a taxable bond fund of a similar credit quality and average maturity (which is generally going to provide higher before tax returns) is going to be better for you.

We favor a more even yield - curve exposure today (with positions across maturities) and a more defensive (higher - quality) credit profile — as volatility and heightened credit concerns could lead to significantly wider spreads in the high - yield - bond market.

Always remember, higher the coupon / interest rate on the bond; lower is its inherent credit quality.

In general, bonds are divided into two broad levels of credit quality — investment grade (IG) and high yield (HY).

Low credit quality bonds are cheaper and can produce higher returns, but they have a higher risk of default.

The dual coverage from the issuer and the cover pool typically makes covered bonds a high credit quality investment.

We prefer selected subordinated financial debt within European credit and favor high - quality U.S. credit and emerging market debt over government bonds, but credit valuations are elevated across the board.

High yield bonds are better known as junk bonds because the credit quality of the underlying bond issuer is low.

The high - grade bond market in the U.S. already has the lowest credit quality mix since the 1980s, according to CreditSights, and there are signs investors are getting nervous.

An option could be to invest in an ETF with short term bonds (e.g. 1 year) with AAA credit rating (high quality, so very low default rate).

Equity risk for the S&P 500 (a high credit quality group) is probably akin to the risk of owning weak BB or strong single - B bonds on average.

Many bond managers like to own RMBS for its high credit quality, liquidity, and attractive yields, but the problem is this: when interest rates move, the RMBS does what you don't want to see happen.

We sold into it, doing a massive up - in - credit trade that left the portfolio higher quality than it was prior to 9/11, and giving us room for the upset that would happen as Worldcom went down, and the corporate bond markets doing a double dip in late July and early October.

Insurance policies are high credit quality obligations, they don't vary as much as bonds that are risky.

Higher Credit Quality, Lower Volatility and Comparable Yields Preferreds have significantly higher credit quality than high yield bonds, have exhibited lower volatility and can offer similar yields with potential tax advantages on income as some preferreds providHigher Credit Quality, Lower Volatility and Comparable Yields Preferreds have significantly higher credit quality than high yield bonds, have exhibited lower volatility and can offer similar yields with potential tax advantages on income as some preferreds providCredit Quality, Lower Volatility and Comparable Yields Preferreds have significantly higher credit quality than high yield bonds, have exhibited lower volatility and can offer similar yields with potential tax advantages on income as some preferreds proviQuality, Lower Volatility and Comparable Yields Preferreds have significantly higher credit quality than high yield bonds, have exhibited lower volatility and can offer similar yields with potential tax advantages on income as some preferreds providhigher credit quality than high yield bonds, have exhibited lower volatility and can offer similar yields with potential tax advantages on income as some preferreds providcredit quality than high yield bonds, have exhibited lower volatility and can offer similar yields with potential tax advantages on income as some preferreds proviquality than high yield bonds, have exhibited lower volatility and can offer similar yields with potential tax advantages on income as some preferreds provide QDI.

High - yield bonds are issued by corporations with lower credit quality ratings.

The second is by varying credit quality: by selecting bonds of lower quality, and therefore higher yields.

To mitigate the risk of the company going bankrupt, risk - averse investors will typically purchase high credit - quality investment grade bonds with AAA or AA ratings.

This flight to quality movement also impacted credit spreads, which widened for both investment grade and high yield corporate bonds, negatively impacting the returns of bonds in those sectors.

Investment grade bonds are the highest quality bonds as assessed by a credit ratings agency.

Emerging market sovereign bonds that are issued in local currencies are supported by high real yields and improving credit quality.

Credit Quality Bond Ratings typically range from AAA / Aaa (highest) to D (lowest).

However, investors looking for a higher yield, without reducing the credit quality, usually need to purchase a bond with a longer maturity.

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

These are bonds paying a high rate of interest because the issuers are of lesser credit quality than government and investment - grade corporate bonds.

High credit risk and history of significant price volatility, especially relative to higher - quality bonds.

Because bonds with lower credit ratings typically compensate investors for the greater risk with higher yields, someone may cautiously choose to swap a higher - quality bond for a lower - quality bond to gain a greater return.

Jettison a lower quality junk bond ETF for a higher quality investment grade corporate bond ETF like iShares Intermediate Credit (CIU).

If you are interested in purchasing high quality international bonds you can research them through Moody's or Standard & Poor's credit rating agencies, and you can purchase them through discount brokerages.

A quality swap is a type of swap where you are looking to move from a bond with a lower credit quality rating to one with a higher credit rating or vice versa.

Suppose you own a corporate bond rated BBB (lower - investment - grade quality) that is yielding 7.00 % and you find a triple - A-rated (higher - investment - grade quality) corporate bond that is yielding 6.70 %.1 You could swap into the superior - credit, triple - A-rated bond by sacrificing only 30 basis points (one basis point is 1 / 100th of one percent, or.01 %).

Higher levels of risk are generally associated with longer - term bonds when interest rates are currently low and deemed likely to go up in the future, as well as low credit quality bonds.