Sentences with phrase «while junk bonds»

While junk bonds may not represent a systemic risk as credit derivatives did during the financial crisis, they can be one of the more effective leading economic indicators.

Average yields on investment - grade corporate bonds have risen just 2 basis points this month to 96 basis points more than Treasuries, while junk bond yields are up just 7 basis points to 253 basis points over Treasuries, according to Merrill Lynch data.

Not exact matches

And while bubbles may yet emerge, by their very nature they're likely to be found somewhere entirely unexpected — not a closely watched, highly liquid market like the $ 1.3 trillion United States junk bond market.

Traders have pulled more than $ 1.8 billion from two junk - focused ETFs just in the past week: the iShares iBoxx $ High Yield Corporate Bond -LRB-- $ 1.06 billion, most of any ETF) and the SPDR Barclays High Yield Bond -LRB--765.4 million, the second most), while also redeeming $ 577.4 million (the fourth most) from the iShares iBoxx Investment Grade Bond ETF, according to FactSet and ETF.com.

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.

While the bond market in general has become relatively illiquid, the corporate junk bond market is now largely trading in «step function» prices for anything larger than «one - sies and two - sies» ($ 1 to $ 2 million bond trades).

Readers have no doubt noticed that numerous inter-market correlations seem to have been suspended lately, and that many things are happening that superficially seem to make little sense (e.g. falling junk bond yields while defaults are surging; the yen rising since the BoJ adopted negative rates; stocks rising amid a persistent decline in earnings growth; bonds, gold and stocks moving in unison, etc., etc.).

I have underlined several times that while we did see volatility in the equity market in Q1» 18, the bond market was numb to any market movements; while Treasuries were falling, junk bonds didn't widen much compared to how they were trading at the beginning of the year.

Writing a bandana around his head whether delivering a book talk on tour or dancing in a church and throughout Wallace's his five - day interview with Jesse Eisenberg's character David Lipsky, Segel and Eisenberg bond over their mutual love of junk food like colas, burgers, fries and licorice, though when Eisenberg's Lipsky appears to be «hitting on» Wallace's ex-girlfriend, Wallace becomes morose, hostile and stops talking to the journalist for a while.

While some stick to their guns (literally) and funnel their money into bonds, gold, and other junk, I look for bargains.

U.S. Treasury bonds are considered to be the safest investment available, while high - yield, junk bonds have significant risk of the issuer failing to pay interest or repay principal.

While there are some exchange - traded index funds that focus on junk bonds, most junk - bond funds are actively managed mutual funds.

In 2008 while most corporate and junk bond funds were negative for the year, US Treasury long term bonds were up 30 - 40 % which almost completely offset the stock market losses that year.

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 %.

While bond investors can usually expect to get both the promised interest payments and their principal back at maturity, that isn't a sure thing with so - called junk bonds, which are issued by companies with shaky finances.

While the High Yield US Corporate Bond ETF appears to be a slightly interesting unique product for an investor looking into junk bonds, it is hard to get excited about the rest of BMO's new ETFs — iShares CDN Short Bond Index ETF (XSB) already provides exposure to short - term bonds and Claymore has the sector ETFs covered.

Now my portfolio is 77 % cash (money market and Stable value funds) and my equity exposure is down to 6 % while the GM and GMAC junk bonds are also 6 %.

Usually, investment grade bonds are associated with lower yields, while junk is bracketed to higher yields.

Less risky bond funds invest in corporate bonds while riskier endeavors toy with junk bond funds in an effort to elicit a higher return.

Edit in response to comment: Corporate bond correlation with stocks is positive but generally not very strong (except for high - yield junk bonds) so while they don't offset stock volatility (negative correlation) they do help diversify a stock portfolio.

At the moment my junk bond portfolio is smaller than usual because I didn't want any transactions pending while the account transfer from E * Trade to Schwab is going on.