Sentences with phrase «junk bond yields at»

Junk bond yields at record lows.

Not exact matches

With equity valuations at historic highs and government bonds barely eking out a return, junk bonds offer solid yields at a good price, he reasons.
With market volatility hitting multi-decade lows, junk bond yields also at record lows, the median price / revenue ratio of S&P 500 constituents at a record high well - beyond 2000 levels, and the most strenuously overvalued, overbought, overbullish syndromes we define, I'm increasingly concerned about the potential for an abrupt «air pocket» in the prices of risky assets that could attend even a modest upward shift in risk premiums.
So while these «fallen angel» bonds have the potential to be intrinsically higher quality than debt originally issued at the junk or high - yield level, undue structural selling pressure from the downgrade can cause them to sell at a discount.
Mr. Swaffield has described the «yield hog» chasing strategy that we used to laugh at when I was a junk bond market professional.
For example, it does not include euro bonds («reverse Yankees») that are hot in Europe, where junk bond yields are at a ludicrously low 2.35 % on average, and the high - grade yield is just above zero.
There are other examples of speculation such as some European junk bonds trading at yields so low that no company should ever have to suffer the indignity of bankruptcy but for pure entertainment value you can't beat Jesus coin.
However, many experts feel yields on «junk bonds» don't justify the risk at this time.
The structural issue at work encouraging the deal - making is that cash flow yields are markedly above junk bond yields, similar to the environment during the late «80s when the market in junk bonds flourished.
Some of the bonds that come due in the next 12 months were trading at prices that offered hearty investors a 25 % to 35 % yield, one junk bond manager told us.
Next we'll look at junk bond ETFs, which include Horizons Active High Yield Bond ETF, iShares U.S. High Yield Bond ETF, and First Asset Active Credit bond ETFs, which include Horizons Active High Yield Bond ETF, iShares U.S. High Yield Bond ETF, and First Asset Active Credit Bond ETF, iShares U.S. High Yield Bond ETF, and First Asset Active Credit Bond ETF, and First Asset Active Credit ETF.
I invest that middle - term money in a mix of junk high yield bond funds and «high» yield savings accounts at an online bank.
Stocks are harder to measure, so if you need better guidance, look at the yields on junk bonds.
In fact, let's argue a more aggressive scenario: US junk bond yields were near 6 % in Sep, and still trade sub-7 %, while 5 yr Treasuries are at 0.66 %.
Corporate bonds that are investment grade are higher, and at the top of the risk level are high - yield junk bonds.
It's also not the time to chase attractive junk bond yields, since they're getting hit by interest rate risk and credit risk at the same time.
A junk bond or high - yield bond is a bond rated at «speculative» grade or at «less than investment grade,» likely BB or lower.
Never in my life would I have considered buying a CCC junk bond at 110 to yield 7 % (quick ratings guide: BBB = investment grade, BB = fine company, B = either a fine or a sketchy company the ratings agencies have no clue which, CCC = this will default just give it a few years, D = this defaulted like we said when we rated it BB uhhhh we're not good at this).
Whether I look at the Merrill High Yield Master 2, BBs, or Bs, junk bonds look expensive.
Junk bonds have tended to outperform the higher rated bonds after a recession, and have been the preferred instrument for 2009, yielding a 43 % return as at the end of November 2009, according to Morningstar.
6) Junk bonds have rallied to a high degree; at this point I say, underweight them — the default losses are coming, and the yields on the indexes don't reflect that.
Some of the bonds that come due in the next 12 months were trading at prices that offered hearty investors a 25 % to 35 % yield, one junk bond manager told -LSB-...]
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