Sentences with phrase «yield bonds have»

For investors, high - yield bonds have become more attractive in recent years due to a strong economy, as well as, because of the following trends:

High yield bonds have been investor favourites the last year and a half.

Rule 144A issuance In recent years, growing shares of new high - yield bonds have been issued under Rule 144A.

High - yield bonds have delivered over the long term, generating returns only marginally lower than those from equities, and with meaningfully lower risk.

In the low interest - rate environment of the last decade, high - yield bonds have been especially attractive to investors.

Senior loan's lower return volatility to interest rate movements is apparent as high yield bonds have dropped 60 basis points from their highs, while senior loans have only given up 25 basis points.

In the bond market, high - yield bonds have the highest probability of default and therefore pay a high yield or interest rate.

«High yield bonds have had a strong rebound since the financial crisis, with indexes reaching all - time highs1 and high yield funds attracting significant inflows over the past two years,» said Michael L. Sapir, Chairman and CEO of ProShare Advisors LLC, ProShares» investment advisor.

Luke @ Learn Bonds writes My Thoughts On High Yield Bonds — High yield bonds have been referred to as «junk bonds,» but that is not the case.

High yield bonds have lower credit quality and carry a higher risk of default.

High yield bonds have outperformed as sector over the past year as investors seek higher yields than the rest of the market can provide.

As with stocks, high yield bonds have had a remarkably quiet year.

If we think of common stock as a bond then common stock has essentially paid a 12 % average annual coupon over the last 30 years while high yield bonds have only paid about a 8 % coupon.

Yields of Canadian corporate investment - grade and high - yield bonds have been trending lower (up in price) since the beginning of March 2016.

High yield bonds have seen compressed yields for some time as the relentless drive for yield had shifted flows toward yield producing assets.

Compared to high - quality bonds, both dividend stocks and high - yield bonds have historically had higher volatility overall and higher correlation to the overall stock market.

High Yield bonds have a slight advantage over cash and «Economic Stress», in the form of GLD and TLT, is lagging cash by a significant margin.

Four new ETFs holding high - yield bonds have appeared in the past 12 months: the BMO High Yield US Corporate Bond ETF (ZHY) was -LSB-...]

Since high - yield bonds have far more credit risk than government bonds of the same maturity, investors should naturally expect higher returns.

High - yield bonds have had many negative years -LRB--26 % in 2008) while consumer debt has never had a negative year: http://www.lendingmemo.com/p2p-lending-as-consumer-credit/

For example, high - yield bonds have historically tended to fare well during periods of rising rates.

High yield bonds have more interest rate sensitivity with duration of just less than 5 years and an average maturity of 6.8 years.

Because they are more equity - like, high yield bonds have intrinsic risk that is independent of the level of yields in high quality bonds, the leading example of which are Treasury bonds.

High yield bonds have been marching along and putting up returns that are dominating the investment grade bond markets.

High yield bonds have been investor favorite the last year and a half.

As risky assets like equities and high yield bonds have come under pressure, gold has rallied roughly 4 % (source: Bloomberg).

High - yield bonds have followed suit, hitting decade - tight levels in credit spreads in October, though they have widened slightly since then.

High yield bonds have only been around since the 1980s, so they've never really experienced a sustained rising rate environment.

Interest rate risk Although high yield bonds have relatively low levels of interest rate risk for a given duration or maturity compared to other bond types, this risk can nevertheless be a factor.

Capital appreciation potential Companies issuing high yield bonds have the potential to turn around their financial standing, creating the opportunity for investors to realize capital gains as bond values increase, due to improving business conditions or improved credit ratings.

Lower credit ratings High Yield Bonds have lower ratings due to the potentially greater risk involved.

Even riskier high yield bonds have held up relatively well.

Compared to high - quality bonds, both dividend stocks and high - yield bonds have historically had higher volatility overall and higher correlation to the overall stock market.

The iShares iBoxx $ Investment Grade Corporate Bond, the iShares iBoxx $ High Yield Corporate Bond and the SPDR Barclays High Yield Bond have been hugely popular.

Appetite for riskier assets such as stocks and high - yield bonds has been suppressed by a number of factors that have come up around the same time, but the headwinds may be transitory, according to the New York - based investment bank.

We are also sceptical that holders of high - yield bonds would be motivated to switch into equities, given the pervasive overweight that already exists in this asset class,» he said.

The most plausible reason for these investors to consider a negative yielding bond would be if they expected price deflation, such that a given payout in the future is worth more than that amount today.

Yield blindness or stated another way, the insatiable search for yield coupled with the low supply of higher yielding bonds has kept many weaker credits including Illinois from seeing higher spreads.

However, most investors don't invest 100 % in stocks, so including exposure to lower yielding bonds would have dragged down returns.

He said: «High - yield bonds had a very strong performance in 2017, but a repeat is unlikely in our opinion.

As rates have remained relatively range bound since the middle of March 2015, the performance difference between investment - grade and high - yield bonds has investors interested on both sides of the fence.

Likewise if interest rates were to drop to 2.00 % the price of your older bond might increase in value to reflect the premium higher yielding bonds would have.

Higher Yielding Bonds Have Outperformed the MMD AAA Benchmark, Tobacco Bonds Have Fared Even Better

«While a student at Berkeley in the late 1960s, Mr. Milken came across empirical support for his hunch that a portfolio of these high - yield bonds would outperform an investment - grade portfolio, even taking into account the higher likelihood of default....

In other words, the yield this bond would return if it were bought in the marketplace today.

The average dollar value of a new issue of high - yield bonds has consistently been around $ 200 million in recent years.

Not exact matches

Especially now, with a third of the world's sovereign bonds carrying a negative yield, why would you want to hold foreign paper?

You'll be surprised at what the correlation has been between the high - yield bond market and the overall stock market.

The rise in U.S. bond yields has dented emerging market currencies and bond markets, including those in Asia.

The yield on Canadian 10 - year federal government bonds have climbed to about 1.6 % from about 1.3 % on Election Day.