Sentences with phrase «while bond credit ratings»

While bond credit ratings and relative yield can compensate an investor for the relative risk of companies to make good on their debts, the recent past has shown this is not always the case.

Not exact matches

And while its credit rating is damaged, the successful US$ 1 - billion bond offering in June shows Iceland is not a total pariah.

While building a bond ladder may help you manage interest rate and reinvestment risk to some extent, there are 6 important guidelines to consider to make sure you are diversified and to attempt to protect yourself from undue credit risk.

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.

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.

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 gCredit 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 gcredit has been rewarded in times of strong economic growth.

So while low and negative interest rates across the globe has inspired flows into stocks, emerging market bonds and corporate credit in search of higher yields, keep in mind the high correlations of these assets to oil prices and the advantages of holding actual diversifiers in your portfolio to smooth the ride.

While the combination of rapid credit growth and below - average interest rates suggests that financial conditions remain expansionary, the slope of the yield curve, as measured by the spread between the yield on 10 - year bonds and the cash rate, suggests a somewhat different picture.

In all, IGIH provides the credit risk and return of investment - grade corporate bonds while aiming to screen out risk from rising rates.

Think of it this way — if a bond is externally rated as BBB, and my firm's internal credit rating team deems it to be AA, then we are simultaneously purchasing the safety and security of a AA bond while also benefiting from the yield of a BBB bond.

BlackRock is urging investors to rethink their bonds in 2015, and part of that means using flexible fixed income strategies to guard against interest rate risk and credit events, while also enhancing the diversification of your fixed income portfolio.

The unconstrained strategy can be thought of in two ways: always trying to earn a positive return with high probability (T - bills are the benchmark, if any), or being willing to accept equity - like volatility while the bond manager sources obscure bonds, or takes large interest rate or credit risks.

The long end is controlled by the economy as a whole, and its rate of growth, while lower quality bonds and loans also respond more to where the credit cycle is.

The fund has invested almost 80 % in AAA rated bonds while the rest of the portfolio is invested in AA rated bonds which may increase the yield without taking much credit risk.

The subsequent low - volatility screening is designed so that bonds with less risk, as demonstrated by their trading pattern, are selected, while duration and credit rating are held equal.

Term and credit risk based 2 - factor model where the term risk premium is calculated as the difference between long - term treasuries and treasury bills and the credit risk premium is calculated from the long - term corporates and long - term treasuries while accounting for the differences in the interest rate sensitivities of long - term treasuries and corporate bonds (refer to the Hallerbach and Houweling, and Asvanunt and Richardson papers listed below).

HYHG maintains full exposure to the credit risk of high yield bonds as a primary source of return, while the hedge is designed to alleviate the impact of rising rates.

Aaa rated bonds possess the least credit risk, while Baa are mid-tier and may still have speculative elements.