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.
Illiquid or non-core
credit that
offers a yield pickup over traditional
investment grade credit due to illiquidity,
credit worthiness or complexity
Product
offerings include
Investment Grade Corporate, Broad Corporate (up to 30 % exposure to below investment grade credit) and Corporate Value (no restrictions by credi
Investment Grade Corporate, Broad Corporate (up to 30 % exposure to below
investment grade credit) and Corporate Value (no restrictions by credi
investment grade credit) and Corporate Value (no restrictions by
credit rating).
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.
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.
But because senior loans are often issued to companies with
credit ratings below
investment grade, they
offer higher starting yields than treasuries.
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
Credit Bond ETF (NYSEARCA: CSJ) aims to
offer a higher distribution yield than comparable all - Treasury funds, but it does have a marginally higher
creditcredit 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.
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.
And over the past five years, MBS
offered a higher Sharpe ratio, a measure of risk - adjusted returns, than both Treasuries and
investment grade credit.
Capital Lease Funding
offers a solution to lower
investment grade and non-
investment grade tenants with its 10 - year
credit tenant lease program that uses a 20 - year amortization schedule.
The recent popularity of interval funds should not come as a surprise; these mutual funds
offer retail investors access to institutional -
grade real estate
investments, such as commercial real estate
credit, private real estate equity and private real estate debt, while typically requiring very low
investment minimums.