Private equity deals will likely continue to be made until something happens to disturb that gap, such
as junk bond yield spreads widening or interest rates moving up, Levkovich said.
Even
as junk bond yields fell into the 6 % range, investor demand for bonds held up well, and the SPDR Barclays High Yield Bond ETF (NYSEMKT: JNK) and iShares iBoxx HY Corporate Bond ETF (NYSEMKT: HYG) were among the best - performing funds with returns of around 11 % to 12 %.
Not exact matches
In the short - term, however, this increased leverage may actually be bullish for
junk bonds, corporate
bonds, emerging market debt and mortgage - backed securities
as it brings higher prices and lower
yields, he said.
Serge Pepin, the head of BMO Investments, says people should consider corporate or high -
yield bonds — also known
as junk bonds — which pay higher
yields than federal issues.
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.
The company's lone outstanding
junk bond, worth $ 1.8 billion and maturing in 2025, briefly dropped two points to
as low
as 85 cents on the dollar for a
yield of around 8 percent on Monday, according to MarketAxess data.
High -
yield bonds, aka junk bonds, as measured by iShares iBoxx $ High Yield Corporate Bond ETF (HYG) are down, too, though by a little
yield bonds, aka
junk bonds,
as measured by iShares iBoxx $ High
Yield Corporate Bond ETF (HYG) are down, too, though by a little
Yield Corporate
Bond ETF (HYG) are down, too, though by a little less.
This high -
yield, or
junk,
bond market has been getting a lot of attention lately
as credit spreads have blown out.
Junk - bond ETFs rallied on Wednesday, as markets breathed relief that the «fiscal cliff» is no longer a concern and as a result, bond yields are under 6 percent for the first time ever, and junk ETF share prices hit levels not seen in years in some cases, according to an article on ETF Tre
Junk -
bond ETFs rallied on Wednesday,
as markets breathed relief that the «fiscal cliff» is no longer a concern and
as a result,
bond yields are under 6 percent for the first time ever, and
junk ETF share prices hit levels not seen in years in some cases, according to an article on ETF Tre
junk ETF share prices hit levels not seen in years in some cases, according to an article on ETF Trends.
When I was a
junk bond trader in the 1990s» we referred to anyone who bought a
bond yielding over 12 %
as «a
yield hog.»
Investing in high
yield fixed income securities, otherwise known
as «
junk bonds», is considered speculative and involves greater risk of loss of principal and interest than investing in investment grade fixed income securities.
The
yield required for a low - risk
bond such
as a Treasury security will be lower than the
yield required for a high - risk
bond such
as a
junk bond.
As Wolf Richter pointed out for Wolf Street earlier this month: «Since mid-December 2016, the Fed has hiked rates four times, in total by 1 percentage point, but over the same period, junk bond yields rated CCC or below have declined 1.5 percentage points as the bonds have rallied.&raqu
As Wolf Richter pointed out for Wolf Street earlier this month: «Since mid-December 2016, the Fed has hiked rates four times, in total by 1 percentage point, but over the same period,
junk bond yields rated CCC or below have declined 1.5 percentage points
as the bonds have rallied.&raqu
as the
bonds have rallied.»
There are other examples of speculation such
as some European
junk bonds trading at
yields so low that no company should ever have to suffer the indignity of bankruptcy but for pure entertainment value you can't beat Jesus coin.
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.
(However, HYG and
junk bond funds are continuing to rally
as the hunt for
yield continues)
This risk is higher when investing in high
yield bonds, also known
as junk bonds, which have lower ratings and are subject to greater volatility.
High -
yield bonds (also known
as «
junk bonds») may be subject to greater levels of interest rate, credit, and liquidity risk than investments in higher rated securities.
High
yield bonds are better known
as junk bonds because the credit quality of the underlying
bond issuer is low.
As time passed, the number of funds increased as they began to specialize in certain types of investments: foreign - country bonds, high - tech stocks, high - yield (junk) bonds, and so fort
As time passed, the number of funds increased
as they began to specialize in certain types of investments: foreign - country bonds, high - tech stocks, high - yield (junk) bonds, and so fort
as they began to specialize in certain types of investments: foreign - country
bonds, high - tech stocks, high -
yield (
junk)
bonds, and so forth.
C and D level
bonds, which are also known
as «
junk bonds», are some of the riskiest
bonds an investor can own but also have some of the highest
yields and best potential returns.
The S&P 500 High
Yield Corporate
Bond Index tracks the
junk bonds of issuers of the S&P 500 and
as the
yields indicate, on average, they tend to be better quality than the
bonds in the broader index.
The Sub-Advisor seeks to achieve the fund's investment objective by selecting a focused portfolio of high -
yield debt securities (commonly referred to
as junk bonds).
U.S.
junk bonds continue to have no stink to them
as demand for
yield far outweighs the supply and seemingly the credit risks associated with these
bonds.
Starting in 2008 and into 2009, high
yield corporate
bonds (otherwise known
as junk bonds) saw huge drops in price under the premise the America was going to see a massive wave of corporate defaults, the likes of which we hadn't seen since the Great Depression.
High -
yield bonds (also known
as «
junk bonds») are subject to additional risks such
as the risk of default.
Lower ‐ quality fixed income securities, known
as «high
yield» or «
junk»
bonds, present greater risk than
bonds of higher quality, including an increased risk of default.
However, the interest rate isn't necessarily the same thing
as some
bonds may have higher
yields do to the potential for defaults like
junk bonds for example.
To a lesser extent, it has also gone into high -
yield mutual funds that buy
bonds rated below investment grade, known
as junk bonds to those who are dubious of them.»
But I'd be wary of venturing,
as some investors seeking higher
yields do, into high -
yield, or
junk,
bond funds,
as they're generally more volatile than investment - grade funds and don't hold up
as well in periods of economic and market stress.
High -
yield bonds, also referred to
as «
junk bonds,» offer higher rates of return, and therefore carry a higher rate of risk, than investment grade
bonds.
High -
yield bonds (sometimes referred to
as junk bonds) typically offer above - market coupon rates and
yields because their issuers have credit ratings that are below investment grade: BB or lower from Standard & Poor's; Ba or lower from Moody's.
Target Maturity Date
Junk Bonds and all other type of bonds are ranked based on their AUM - weighted average dividend yield for all the U.S. - listed ETFs that are classified by ETFdb.com as being mostly exposed to those respective b
Bonds and all other type of
bonds are ranked based on their AUM - weighted average dividend yield for all the U.S. - listed ETFs that are classified by ETFdb.com as being mostly exposed to those respective b
bonds are ranked based on their AUM - weighted average dividend
yield for all the U.S. - listed ETFs that are classified by ETFdb.com
as being mostly exposed to those respective
bondsbonds.
High -
yield bonds, also known
as «
junk bonds,» generally have a greater risk of default, which increases the risk that an issuer may be unable to pay interest and principal on the issue.
By contrast,
bonds rated BB + or Ba1 or worse, are treated
as high -
yield bonds, which many refer to
as junk bonds.
Bonds with lower ratings are considered «speculative» and often referred to as «high - yield» or «junk» b
Bonds with lower ratings are considered «speculative» and often referred to
as «high -
yield» or «
junk»
bondsbonds.
U.S. Municipal
Bonds: (Data
as of May 16,2013) Corporate
junk bond yields have risen
as mutual funds have seen outflows.
The rate of default is much higher for high -
yield bonds, fittingly referred to
as junk bonds.
The fund may invest up to 100 % of its managed assets in below - investment grade debt securities (commonly referred to
as «high -
yield» or «
junk»
bonds).
The fund may invest without limit in high
yield fixed - income securities (often referred to
as «
junk bonds»).
High
yield securities are generally rated below investment - grade and are commonly referred to
as «
junk»
bonds.
Some of those risks include general economic risk, geopolitical risk, commodity - price volatility, counterparty and settlement risk, currency risk, derivatives risk, emerging markets risk, foreign securities risk, high -
yield bond exposure, noninvestment - grade
bond exposure commonly known
as «
junk bonds,» index investing risk, industry concentration risk, leveraging risk, market risk, prepayment risk, liquidity risk, real estate investment risk, sector risk, short sales risk, temporary defensive positions, and large cash positions.
High -
yield bonds — Also known
as «
junk bonds».
Loomis Sayles
Bond Fund (LSBRX, 3.3 %) isn't technically a junk - bond fund, but longtime manager Dan Fuss has excelled as a bond picker, particularly in high - yield iss
Bond Fund (LSBRX, 3.3 %) isn't technically a
junk -
bond fund, but longtime manager Dan Fuss has excelled as a bond picker, particularly in high - yield iss
bond fund, but longtime manager Dan Fuss has excelled
as a
bond picker, particularly in high - yield iss
bond picker, particularly in high -
yield issues.
Corporate
junk bond yields have risen
as mutual funds have seen outflows.
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
Bonds writes My Thoughts On High
Yield Bonds — High yield bonds have been referred to as «junk bonds,» but that is not the
Yield Bonds — High yield bonds have been referred to as «junk bonds,» but that is not the
Bonds — High
yield bonds have been referred to as «junk bonds,» but that is not the
yield bonds have been referred to as «junk bonds,» but that is not the
bonds have been referred to
as «
junk bonds,» but that is not the
bonds,» but that is not the case.
Another important takeaway from the Callan table is the value of holding a portion of your nest egg in a safe haven like investment - grade
bonds (
as opposed to high -
yield, or
junk,
bonds, which are more volatile and tend to move more in synch with stocks than
bonds).
As we've discussed in the first two parts of this three - part series, we do not recommend turning to dividend -
yielding stocks or high -
yield («
junk»)
bonds to buttress your retirement income, even in low -
yield environments.
Because managers Dan Fuss and Kathleen Gaffney typically own a large helping of high -
yield, or
junk,
bonds (those rated double - B or lower),
as well
as bonds from developing nations, the fund took a hit when investors bailed out of anything smacking of risk during the financial crisis and rushed into Treasuries.
As David Kehohane of FTAlphaville notes, even
junk bonds are now
yielding less than 5 %!