Sentences with phrase «investment grade bonds offer»

Investment grade bonds offer income with very low probability of default and reversion to cash at maturity.

Not exact matches

While credit risk might seem like a bad idea with the U.S. economy still weak and the rest of the world looking equally uncertain, high - yield bonds do offer bigger returns than government and investment - grade bonds.
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.
The team focuses on selecting investment - grade bonds which offer strong relative value in an effort to generate income while seeking to limit risk to the money invested.
Investment grade bonds, preferred stocks or bank loans offer reasonable returns with arguably less volatility, in my opinion.
While yields on government bonds remain unattractive, according to Stopford, investment - grade corporate bonds offer a modest pickup in yield — and high - yield bonds, a more significant advantage.
They are riskier than bonds issued by higher rated investment - grade companies, so they often offer higher yields.
The average bid - offer spread for trading an investment grade corporate bond, for example, is 50 basis points.
Cons: The primary negative associated with investment grade floaters is that when issued they generally offer current yields that are significantly lower than a typical fixed rate bond of the same maturity offered by the same issuer.
The back - tested results of the 17 - year period ending Feb. 28, 2017, show that the S&P U.S. High Yield Low Volatility Corporate Bond Index may offer an intersection that bridges the volatility gap between the high - yield and investment - grade bond sectors, with increased return efficieBond Index may offer an intersection that bridges the volatility gap between the high - yield and investment - grade bond sectors, with increased return efficiebond sectors, with increased return efficiency.
In today's low rate environment, the investment grade corporate bond market in the US and abroad offers a way to pick up additional yield and diversification, while maintaining a relatively low level of risk.
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They are riskier than bonds issued by higher rated investment - grade companies, so they often offer higher yields.
Investment grade corporate bonds typically offer better return potential than Treasury bonds, and investment grade debt allows investors to pursue those returns without adding as much risk as high yiInvestment grade corporate bonds typically offer better return potential than Treasury bonds, and investment grade debt allows investors to pursue those returns without adding as much risk as high yiinvestment grade debt allows investors to pursue those returns without adding as much risk as high yield bonds.
The team focuses on selecting investment - grade bonds which offer strong relative value in an effort to generate income while seeking to limit risk to the money invested.
While the portfolio of high - quality bonds may offer additional return potential, long - term investment grade bonds are subject to substantial interest rate risk.
The indicative yield of U.S. preferred stocks was 5.90 % YTD, which offered a significant yield pick - up over investment - grade corporates and comparable yield to high - yield bonds.
ProShares Interest Rate Hedged Bond ETFs, HYHG and IGHG, offer diversified portfolios of high yield or investment grade bonds.
High - yield bonds, also referred to as «junk bondsoffer higher rates of return, and therefore carry a higher rate of risk, than investment grade bonds.
High yield bonds typically offer better return potential than Treasurys or investment grade bonds as a way of compensating investors for taking on greater risks.
ProShares Interest Rate Hedged Bond ETFs, IGHG and HYHG, offer diversified portfolios of investment grade or high yield bonds.
While the above table indicates that traditional investment grade bonds represented by the Barclays U.S. Aggregate are the least correlated to the S&P 500 and offer the best downside protection, that might not always be the case going forward.
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.
The Markit iBoxx ® $ Liquid Investment Grade Index is a modified market - value weighted index designed to provide a balanced representation of U.S. dollar - denominated investment grade corporate bonds publicly offered in the United States by means of including the most liquid investment grade corporate bonds available as determined by the indexInvestment Grade Index is a modified market - value weighted index designed to provide a balanced representation of U.S. dollar - denominated investment grade corporate bonds publicly offered in the United States by means of including the most liquid investment grade corporate bonds available as determined by the indexinvestment grade corporate bonds publicly offered in the United States by means of including the most liquid investment grade corporate bonds available as determined by the indexinvestment grade corporate bonds available as determined by the index provider.
High - yield bonds (sometimes referred to as junk bonds) typically offer above - market coupon rates and yields because their issuers have credit ratings that are below investment grade: BB or lower from Standard & Poor's; Ba or lower from Moody's.
«On the heels of launching the first inverse ETFs on the high yield and investment grade corporate bond markets, we are pleased to offer the first leveraged ETFs on these segments of the fixed income landscape,» said Michael L. Sapir, Chairman and CEO of ProShare Advisors LLC, ProShares» investment advisor.
Bloomberg Barclays Aggregate Index provides a measure of the performance of the U.S. investment grade bonds market, which includes investment grade U.S. Government bonds, investment grade corporate bonds, mortgage pass - through securities and asset - backed securities that are publicly offered for sale in the United States.
High Yield Bonds ETFs offer investors exposure to debt issued by below investment grade corporations.
The income offered on DIAs will vary over time as market conditions change, being driven most notably by longer - term Treasury and investment grade corporate bond yields.
The investment grade portion of the index offers exposure to the more liquid, cash - pay bonds.
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.
The average bid - offer spread for trading an investment grade corporate bond, for example, is 50 basis points.
If you want to pick your own non-core high - yield North American corporate bond fund, TD offers the TD High Yield Bond Fund, which focuses mainly on BB and B rated issues at the higher quality end of below - investment grade and mostly hedges its U.S. currency exposure back to the Canadian dolbond fund, TD offers the TD High Yield Bond Fund, which focuses mainly on BB and B rated issues at the higher quality end of below - investment grade and mostly hedges its U.S. currency exposure back to the Canadian dolBond Fund, which focuses mainly on BB and B rated issues at the higher quality end of below - investment grade and mostly hedges its U.S. currency exposure back to the Canadian dollar.
At the same time, and ordinary investment in a basket of lower investment grade and high yield bonds offers a nice return for those willing to live with some default risk, which is over-discounted here, even with things as bad as they are.
Guggenheim offers 8 which invest in investment grade bonds.
Guggenheim Investments currently offers 14 of these funds, 8 of which invest in investment grade bonds, 6 of which invest in high yield or «junk» bonds.
In seeking attractive income, the fund will focus on non-rated bonds, lower investment - grade bonds and below investment - grade or «high yield» municipal bonds, while offering daily liquidity and full transparency of holdings.
Guggenheim, for example, offers 20 investment - grade and high - yield corporate bond target - maturity - date ETFs under its BulletShares brand, with maturities at different years (2017, 2018 and so on); iShares offers 17 target - maturity - date bond ETFs.
The NuShares ESG U.S. Aggregate Bond ETF is designed to offer exposure to the U.S. investment - grade, taxable, fixed - income market while adhering to ESG principles.
The fund offers investors low - cost exposure to the broad U.S. investment - grade corporate bond market through a single fund.
When we talk about credit, we refer to the likes of investment grade bonds (issued by more creditworthy companies), high yield bonds (issued by less creditworthy companies, but offering more return and income in exchange), and emerging market bonds.
VCSH offers exposure to investment grade corporate bonds that fall towards the short end of the maturity spectrum, thereby delivering a moderate amount of credit risk but limiting exposure to rising interest rates.
For investors willing to accept an incrementally higher level of credit risk with a portfolio of one - to three - year investment - grade bonds, CSJ offers a yield advantage of 56 basis points over SHY.
With a portfolio composed of investment - grade debt from corporate, sovereign and supranational issuers with three - year maximum maturities, the iShares 1 - 3 Year Credit Bond ETF (NYSEARCA: CSJ) aims to offer a higher distribution yield than comparable all - Treasury funds, but it does have a marginally higher credit risk.
Investments in high - yield bonds offer different rewards and risks than investing in investment - grade securities, including higher volatility, greater credit risk, and the more speculative nature of the issuer.
ProShares Investment Grade — Interest Rate Hedged (IGHG) tracks the Citi Corporate Investment Grade (Treasury Rate - Hedged) Index, which offers a diversified portfolio of investment grade long - term bonds with a built - in interest rInvestment Grade — Interest Rate Hedged (IGHG) tracks the Citi Corporate Investment Grade (Treasury Rate - Hedged) Index, which offers a diversified portfolio of investment grade long - term bonds with a built - in interest rInvestment Grade (Treasury Rate - Hedged) Index, which offers a diversified portfolio of investment grade long - term bonds with a built - in interest rinvestment grade long - term bonds with a built - in interest rate hedge.
The S&P 500 High Yield Corporate Bond Index presents a unique credit alternative to bridge the gap between existing investment grade, which offers spread levels of around 150 bps, and high - yield corporate credit, which offers north of 600 bps in spread.
This separately managed account offers investors a diversified portfolio of investment - grade bonds and seeks to generate federally tax - exempt interest income, while limiting risk to principal over the long term.
The team focuses on selecting investment - grade bonds that offer strong relative value in an effort to generate income while seeking to limit risk to the money invested.
«So to postpone the impact of any increase as long as possible, we've shifted some of our long bond exposure to U.S. investment - grade corporate bonds offering decent yields.»
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