Sentences with phrase «long duration bond portfolio»

BlackRock Long Duration Bond Portfolio is changing its name on July 29, 2013, to BlackRock Investment Grade Bond Portfolio.

Of course, if you own a longer duration bond portfolio these numbers will not look nearly as friendly.

Not exact matches

According to Morningstar Direct, $ 59 billion is invested in long - term bond funds and exchange - traded funds (defined as portfolios with average durations above six years).

The longer the duration, the more sensitive a bond portfolio is to interest rate changes, so HYGH's much shorter duration is its protection against higher rates.

Given those durations, an investor with 15 - 20 years to invest could literally plow their entire portfolio into stocks and long - term bonds, in expectation of very high long - term returns, with the additional comfort that their financial security did not rely on the direction of the markets, thanks to the ability to reinvest generous coupon payments and dividends.

This could be a drag on current growth and cause risk - on / risk - off gyrations, making long - duration bonds useful portfolio diversifiers.

Specifically, longer - duration bonds are reasserting their role as an effective ballast to equity risk and can be especially helpful in equity - centric portfolios.

Over the long term the nominal return on a duration - managed bond portfolio (or bond index — the duration on those doesn't change very much) converges on the starting yield.

While longer - duration bonds can provide portfolio diversification benefits, shortening the duration of your bond portfolio can potentially help manage losses due to rising interest rates.

Former Fed Governor Stein highlighted that Federal Reserve's monetary policy transmission mechanism works through the «recruitment channel,» in such way that investors are «enlisted» to achieve central bank objectives by taking higher credit risks, or to rebalance portfolio by buying longer - term bonds (thus taking on higher duration risk) to seek higher yield when faced with diminished returns from safe assets.

Shorter ‐ duration bonds do not provide the same degree of portfolio diversification as longer ‐ duration bonds.

With stocks on shaky ground, investors with equity - centric portfolios may want to consider adding exposure to longer - duration bonds.

High Quality, Long Duration Bonds Perform Well When Times Get Tough Can we improve upon this portfolio construction?

A long duration fund should be composed of a diversified portfolio of investment grade bonds and have a long duration.

So if an investor expects market interest rates to go down, they want a long - duration bond portfolio because it will maximize the increase in price.

The longer the duration or maturity of the bonds in the portfolio, the more committed the managers are to those bonds.

Other specialty portfolios include Short Term and Floating Rate Bonds, Inflation - Linked Bonds, Bank Loans, Infrastructure Debt, and Long Duration Credit.

Fairly conservative investors favor short - term bond funds because they're less sensitive to interest rates than portfolios with longer durations.

Specifically, longer - duration bonds are reasserting their role as an effective ballast to equity risk and can be especially helpful in equity - centric portfolios.

High - yield corporate bonds may also be used to gain modest exposure to higher - yielding maturities, though the portfolio is unlikely to hold a large percentage of high - yield bonds, especially those of longer duration.

A good bond manager has already decreased the portfolio duration (selling long term bonds to buy more short term bonds) to make sure that the bond fund doesn't drop drastically.

But 10 years is a long time for a bond portfolio with a duration of less than 2 years.

The Vanguard STAR fund benchmark was also up 1.4 % in November matching our Aggressive portfolio exactly, however, in down markets we're generally falling less than this total portfolio fund, mostly because of our short positions and longer - duration bond holdings.

He currently serves as the lead portfolio manager for Long Duration strategies, specializing in corporate and government bonds.

A risk of DIAs present in a portfolio of longer - duration bonds is the possibility that rising interest rates and inflation will erode the purchasing power of future income payments.