Sentences with phrase «quality bond ratings»

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

A high quality bond rating of AAA from Standard and Poor's, for example, means the bond is of the highest investment quality, suggesting the company will have the ability to pay both principal and interest at maturity.

Seemingly high - quality bonds rated A3 by Moody's had been downgraded five notches to Ba2, as had the other bonds in the pool aside from its triple - A's.

Not exact matches

Fill the bulk of your portfolio with a combination of high - rated bonds (weighted toward corporate, rather than government, debt) and high - quality, dividend - paying equities, and you likely won't take a hit.

«The credit quality, this move up in interest rates, this loss of a four - decade uptrend in bonds, downtrend in yields, that's the source of the volatility which I think far surpasses these amazing developments technology has come across in the last couple of decades,» said Gordon.

Ms. Jones suggests sticking with floating - rate funds that invest in high - quality bonds, such as the iShares Floating Rate Bond E.Trate funds that invest in high - quality bonds, such as the iShares Floating Rate Bond E.TRate Bond E.T.F..

Moreover, Treasuries are quite sensitive to rate increases, and Ms. Jones found that the credit quality of the corporate bonds in the index had decreased since the financial crisis.

Funds that own high - quality bonds with shorter durations, such as Fidelity Short - Term Bond, can help reduce your portfolio's sensitivity to rising rates.

Rating service Moody's tracks covenant quality, essentially a measure of standards that bond issuers must meet, and reported Thursday that the latest reading remains near record highs, which indicates weak restrictions.

The assumed discount rate utilized is based on a broad sample of Moody's high quality corporate bond yields as of the measurement date.

The NAV (net asset value) of a bond fund will move up or down based on a number of factors such as changes in interest rates, credit quality, and currency values (for international bonds) for the different bond holdings in the fund.

The bond rating is an important process because the rating alerts investors to the quality and stability of the bond.

A bond rating is a grade given to bonds that indicates their credit quality.

Similarly, when it comes to your bond investments, consider varying maturities, credit qualities, and durations, which measure sensitivity to interest - rate changes.

This way, if a bear market occurs, you have a year of cash becoming available at the maturity date so that you do not have to sell stocks, and in a bull market you can buy new bonds as the ones you own mature, and you thereby benefit from the higher interest rates that high quality bonds give versus cash or CDs.

When people see banks browbeating the bond rating agencies and accounting firms to whitewash the quality of what they're pawning off on their customers, when they see bank lobbyists getting Washington to block state prosecutions of financial fraud so as to clear the way for more predatory lending and false packaging of the junk securities they're selling and to win the right not to reveal their true financial position, there's a good reason not to buy what's in these black boxes.

A bond's credit quality is determined by private independent rating agencies such as Standard & Poor's, Moody's and Fitch.

Source: Risk of loss: Should the prospect of rising rates push investors from high - quality bonds?

But if interest rates and bond yields had decreased in the meantime, you wouldn't be able to generate as much income as before with the same amount invested in a similar quality bond.

A downgrade in the credit rating of a bond by the credit agencies can affect bond performance as well if institutional investors are forced to sell because of restrictions on the credit quality of the bonds they're able to hold.

Performance varies greatly for bonds of different credit qualities, but even during the worst bear market for bonds, the 40 - year period of rising rates from 1941 to 1981, the worst 1 - year loss for the Bloomberg Barclays US Aggregate Bond Index was just 5 %.

In pursuance of the Union Budget 2018 announcement, the board also cleared a proposal on changing the investment grade rating from AA to A for corporate bonds, which would boost investment scope while ensuring credit quality.

Spreads on the lowest quality segment of the «junk» bond category, «C» rated bonds, have narrowed by an extraordinary 30 percentage points since late 2001, to around 5.5 percentage points.

While spreads between yields on highly - rated corporate bonds and government bonds have remained above their historical averages, this continues to reflect strong demand for Commonwealth Government bonds rather than concerns about corporate credit quality.

The market for bonds is very large and prices reflect the trade - off between rates, credit quality and bond maturity.

-- Income more difficult to provide clients, in a zero rate environment many will suggest high yield corporate bonds and leveraged loans to supplement traditional fixed income but many clients are not willing to sacrifice quality for a higher yield.

Sources: Bond - market losses may hit 40 %, and retirees are most vulnerable (MarketWatch) Risk of loss: Should the prospect of rising rates push investors to high quality bonds?

The investor should note that vehicles that invest in lower - rated debt securities (commonly referred to as junk bonds) involve additional risks because of the lower credit quality of the securities in the portfolio.

Inflation and rates would likely move up together and for the same reasons, but unless we see a huge, short - term shift up in rates I'm guessing we won't see any 2008 - sized losses in high quality bonds.

This is a market - based estimate of the amount of fear in the bond market Bass - rated bonds are the lowest quality bonds that are considered investment - grade, rather than high - yield.

So, market participants who buy and sell bonds at different prices are expressing different views about a number of variables: the likelihood that these cash flows will be received (credit quality); the velocity at which they may be received (prepayment or extension); their relative value to other bonds; and their interest rates relative to prevailing rates.

Credit provides the potential for both diversification and incremental returns: While rate - driven government bonds have been rewarded during flight to quality periods, credit has been rewarded in times of strong economic growth.

However, munis may pay lower yields than Treasury or corporate bonds of similar maturity and quality, and are subject to the same rate risks as other bonds.

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

Instead, Wang and his colleagues identified a relationship between a feature of the bonds linking carbon and hydrogen in methane molecules — a quality they deemed «clumpiness» — and the rate at which methane was produced: The clumpier the bond, the slower the rate of methanogenesis.

If you like escapist espionage thrillers with lots of action, perhaps there's enough quality actors, superb stunt work, and nice location shoots to give The November Man a passable grade, especially because the R - rated action can be quite brutal compared to a James Bond flick.

«To construct / renovate classrooms, restrooms / school facilities to improve the quality of education at Brittan Elementary School, build a gymnasium for school and community use; repair, construct, acquire classrooms, sites and equipment, shall this Brittan Elementary School District measure be adopted to issue $ 4,000,000 of bonds at legal rates, levy approximately 3 cents / $ 100 assessed value, generating approximately $ 260,000 annually while bonds are outstanding, with annual audits, independent citizens» oversight, NO money for salaries, all money staying local?»

«To improve the quality of education; make health and safety improvements; modernize / construct classrooms, restrooms and school facilities: and improve P.E. fields and facilities; shall Laton Joint Unified School District issue $ 7,000,000 of bonds at legal rates, averaging $ 421,000 annually as long as bands are outstanding at a rate of approximately 6 cents per $ 100 assessed value, with annual audits, an independent citizens» oversight committee, no money for salaries, and funding that can not be taken by the State?»

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

For example, the yields on CCC - rated high yield bonds are quite low on a 10 - year basis given the historically higher default rates in this low - quality portion of the market.

As for bonds, you want to own both government and high - quality corporate issues in a range of maturities (although, to protect yourself against the possibility of rising rates, you'll want to keep the average maturity of your overall holdings in the short - to intermediate - term range).

So, market participants who buy and sell bonds at different prices are expressing different views about a number of variables: the likelihood that these cash flows will be received (credit quality); the velocity at which they may be received (prepayment or extension); their relative value to other bonds; and their interest rates relative to prevailing rates.

«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.

A bond's credit quality is usually determined by independent bond rating agencies, such as Moody's Investors Service, Inc., and Standard & Poor's Corporation (S&P).

Unlike with stocks, there are organizations that rate the quality of each bond by assigning a credit rating, so you know how likely it is that you'll get your expected payments.

The S&P China High Quality Corporate Bond 3 - 7 Year Index, an investible index tracks the performance of Chinese corporate bonds within three to seven year tenors and uses more stringent rating criteria, has outperformed its boarder benchmark and returned 5.70 % YTD, as of August 27, 2015.

A bond rating is a grade applied to a bond issuance clearly specifying the quality and level of risk assumed by a bond purchaser.

Although the advisor intends to invest at least 65 % of the fund's net assets in municipal bonds rated investment grade or in unrated municipal bonds that fund management believes are of comparable quality, it is possible that in the future the fund could invest up to 100 % of its assets in «junk bonds.»

Investors and fund managers search for yield, extend maturities, reach for lower credit quality and shift assets from short term floating rate money market funds to bonds, bond funds and similar investments.

Bonds that are higher - quality (more likely to be paid on time) generally offer lower interest rates.