Sentences with phrase «with junk bond»

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

With junk bond managers looking to diversify their portfolios, some may be in the market for a large tech deal.

Shell companies, along with junk bonds, penny stocks, and shoulder pads, are usually dismissed as an unfortunate trend of the 1980s.

The following year, Trump financed his third casino build primarily with junk bonds in a much - maligned deal that contributed to his eventual business bankruptcy.

Also remember that if a bond fund yields 6 % currently, it is stuffed with junk bonds.

«I would say it's a little bit like we're willing to go with junk bonds rather than AAA stocks because the payoff is big,» he said in a 2013 interview with Bloomberg Television.

But the real emergency affects mainly debtors — mortgage debtors with negative equity, companies loaded down with junk bonds (many of them taken to buy back corporate stock and increase dividend payouts to increase the price at which managers can cash out).

Actually, as much as I'd like to nail Romney and Bain, it was Mike Milken who started this business of doing LBOs with junk bonds way back in the late 1970s.

-- But a look behind the scenes reveals a company burning cash and financing its production binge with junk bonds.

A fund with this exposure can certainly lose money during a 2008 - type crisis because of liquidity concerns, but it won't suffer anything like the carnage we saw with junk bonds.

It doesn't matter if you measure risk by standard deviation of returns, beta, or credit rating (with junk bonds).

Private Versus Public Debt: Evidence From Firms That Replace Bank Loans With Junk Bonds: Stuart C. Gilson, Jerold B. Warner

Not exact matches

Although there may not be a bond bubble, with investors starved for yield, Gundlach predicts a potential bubble could form in credit risk as investors increase their leverage on riskier debt securities like junk bonds and emerging market debt.

«It's on the way» to junk status, said Carlos Gribel, the head of fixed income at private investment bank Andbanc Brokerage in Miami, adding the bonds still have room to fall before becoming attractive to investors with an appetite for risk.

That's left a lot of junk bond fund managers with plenty of exposure to the energy sector at a time when oil prices have crashed and defaults, particularly among fracking companies, are rising.

This, the office which Rudy Giuliani led to national prominence with his late - 1980s busts of junk - bond king Michael Milken, Ivan Boesky, and the Drexel Burnham insider - trading ring, is one of the few outfits in the country that even know how to prosecute complex securities crimes.

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.

Moreover, Moody's said the ranks of the lowest level of junk bond issuers are growing, with an 8 percent quarterly increase and 27 percent growth annually, thanks in large part to weakness in oil and gas companies.

4) Beware of ETF's where liquidity of ETF is out of synch with Underlying market liquidity... emerging market, junk bonds, pretty much every ETF except us stocks, gov. Bonds and GLD has fake liqubonds, pretty much every ETF except us stocks, gov. Bonds and GLD has fake liquBonds and GLD has fake liquidity

However, investors of junk bonds should note the implications and risks that are involved with investing in bonds that are issued by companies with liquidity issues.

The fund can purchase securities of any credit quality, including those in default, but it will primarily invest in investment - grade debt, with no more than 20 % of the portfolio invested in junk bonds.

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.

All else equal, unless it possesses some sort of major offsetting advantage that makes the risk of non-payment low, a company with a low - interest coverage ratio will almost assuredly have bad bond ratings, increasing the cost of capital; e.g., its bonds will be classified as junk bonds rather than investment grade bonds.

Greylock, a $ 990 million hedge fund run by Willem J. «Hans» Humes, says in a filing with the Securities and Exchange Commission that international junk bonds are «generally considered to be predominantly speculative with respect to the issuer's capacity to pay,» and that defaulters sometimes end up shielded by «principles of sovereign immunity.»

Currently, some junk bonds with triple - C ratings are yielding under 6 %.

With the current capital markets having been flooded with Fed, Bank of Japan and ECB money printing, I'm not sure the junk bond market will act as a warning beacon this time aroWith the current capital markets having been flooded with Fed, Bank of Japan and ECB money printing, I'm not sure the junk bond market will act as a warning beacon this time arowith Fed, Bank of Japan and ECB money printing, I'm not sure the junk bond market will act as a warning beacon this time around.

An article published by Bloomberg — LINK — this morning started off with a rather improbable assertion: «The new fixed - income haven is, of all things, the market for junk bonds.»

``... The result of the junk bond process was to load American industry down with so much debt that there's no money to pay pensions...»

If you feel comfortable with more risky type of investments such as options, junk bonds or crypto - currencies — by all means, go ahead.

With $ 23 billion in debt and its bonds rated as junk, ArcelorMittal started to scale down.

Further, with junk grade defaults at negligible levels today, even higher risk bonds have not posed significant problems — although that does not always have to be the case.

Now, with the magic of QE2, the Fed wants to drive long - term rates down to unseen levels and push all Treasury investors (short or long) towards higher - risk assets — junk bonds, real estate, stocks, and commodities.

An annual conference, with speakers — from legal defense legend Alan Dershowitz to junk bond inventor Michael Milken — gets packed to overflowing, and members are pushing for more social events like the planned excursions to Israel or Iceland.

Other factors also impact portfolio performance; most notably, the specific market segments in which it is invested — durations of junk bond funds will exceed durations of treasury funds with similar maturities.

Yeah, investors often confuse yield with fixed income risk, but I agree that junk bonds are much closer to stocks from a risk perspective.

Also, stocks are volatile and generally the riskiest assets, with the possible exception of credit default swaps, high - yield «junk» bonds, and other similar assets.

On the subject of junk debt, in the first two quarters of 2014, European high yield bond issuance outstripped U.S. issuance for the first time in history, with 77 % of the total represented by Greece, Ireland, Italy, Portugal, and Spain.

The CNN Fear & Greed Index monitors seven market factors, including stock price momentum, stock price strength, stock price breadth, put and call options, junk bond demand, market volatility and safe haven demand, by calculating how far they have veered from their averages relative to how far they normally veer, on a scale of 0 to 100, with 0 indicating fear and 100 greed.

There are various ways to participate in the Junk Bond rally that is just underway - from purchasing individual corporate bonds to diversifying risk with double - digit yielding Bond ETFs, Mutual Funds and individual corporate paper.

For example, in a world where short - term interest rates are zero, Wall Street acts as if a 2 % dividend yield on equities, or a 5 % junk bond yield is enough to make these securities appropriate even for investors with short horizons, not factoring in any compensation for risk or likely capital losses.

Junk bond sales were 20 % higher in 2017 than in 2016, with a total of $ 275 billion priced.

These risks increase with high - yield, or so - called «junk,» bonds.

It helps to be a worldclass economist - historian, to have been a trader and Managing Director of Drexel Burnham Lambert when the firm was the junk bond king of Wall Street, to have lived in Hong Kong for a quarter of a century, and to have a contact book crammed with the home numbers of many of the movers and shakers in the financial world.

Figure 1 — Growth of $ 1,000 split between Junk bonds, dividend stocks and intermediate - term treasuries with an annual rebalance; 12/31/1989 -3 / 31/2018

A few months earlier, in connection with insider trading scandals, the Securities and Exchange Commission had sued Drexel and the man who built its junk bond business, Michael Milken.

Although Bain Capital was far removed from the scandals that brought down Drexel and Milken, its association with the junk - bond king came back to haunt Romney when he eventually ran for office.

With the loans the town backed indirectly for Singh, and the political, legal and financial brouhaha that followed, Oyster Bay's pristine credit rating fell to junk - bond status.

The cast includes»80s sitcom - killer Ted McGinley (soon to find a long - term home on «Married... with Children») as Jenny's wealthy junk bond trader fiancé.

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.

With $ 40 million dollars from Wall Street investors, including $ 10 million from the infamous junk - bond dealer Michael Milken, Ronald Packard, a former Goldman Sacks executive and William Bennett, a former Secretary of Education, formed K12, Inc. so that they and their investors could profit off the children of the United States.