Sentences with phrase «at junk bonds»

A second reason for looking at junk bonds is that they may be a more sensitive indicator, perhaps a more sensitive leading indicator, of economic conditions than higher - grade bonds.

One reason for looking at junk bonds is that the firms that issue junk bonds are closer on the risk continuum to a large mass of firms that are too small and too weak to issue bonds at all, and that rely on banks or the informal capital market for funds.

Next we'll look at junk bond ETFs, which include Horizons Active High Yield Bond ETF, iShares U.S. High Yield Bond ETF, and First Asset Active Credit ETF.

Not exact matches

«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.

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.

Markets are fine, volatility is modest and trade war isn't a big deal, say delegates at junk - bond king Michael Milken's annual L.A. summit.

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.

So the high - interest junk bond was born, largely at the hands of Michael Milken's gang at Drexel Burnham.

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.

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).

Some 5.7 % of corporate junk bonds from emerging markets are trading at prices below 70 cents on the dollar, more than double the rate for higher - risk U.S. bonds, according to JPMorgan.

Historically going back at least to the 1990's, stocks tend to move in the same direction as junk bonds on a lagged basis.

You use the money to pay off the junk bond holders at high interest.

Mr. Swaffield has described the «yield hog» chasing strategy that we used to laugh at when I was a junk bond market professional.

For example, it does not include euro bonds («reverse Yankees») that are hot in Europe, where junk bond yields are at a ludicrously low 2.35 % on average, and the high - grade yield is just above zero.

On the other end of the scale, Schwab will only let you search investment grade bonds online (you must call the bond desk to trade junk), will only let you buy online (you must call to sell), and does not allow limit orders at all.

For example, Fidelity will allow you to search both investment grade and junk bonds, show you the number of bonds available at both the bid and ask price, and will even allow you to submit a limit order (although you can not put in a good until cancelled order or one that is more than a small amount away from the current bid / ask).

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.

Plenty of investment - grade credit bonds suspended coupon payments in the Depression, transiting directly from A to D rating without even making a pit stop at a C junk rating.

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.

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.

Investors» warm reception for this week's $ 3.5 bln issue looks strange given the island's junk rating and rocky finances, not to mention that existing bonds trade at a big discount.

He used to make runs at companies via junk bonds and other tools of leverage.

When the Fed decided to terminate the junk bond business to prevent the real estate market from blowing up, all of our customers in North America, and Europe, suddenly stopped buying at the same time.

For this test we simply split our money evenly between junk bonds, dividend stocks and intermediate - term treasuries and rebalance at the end of each year.

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Although the advisor intends to invest at least 65 % of the fund's net assets in municipal bonds rated investment grade or in unrated municipal bonds that fund management believes are of comparable quality, it is possible that in the future the fund could invest up to 100 % of its assets in «junk bonds.»

As a young person with high risk tolerance I am completely invested in stocks now, as bonds are pretty junk to me right now at these levels.

However, many experts feel yields on «junk bonds» don't justify the risk at this time.

The structural issue at work encouraging the deal - making is that cash flow yields are markedly above junk bond yields, similar to the environment during the late «80s when the market in junk bonds flourished.

That said, I see it as being equally relevent that what carried a AAA rating was, intruth, a junk bond and that sale upon such representation to be at least a serious tort and quite probably a financial fraud.

The bubble was a combination of (a) teaser rates on option ARMs which were like financial time bombs, (b) liar loans in which the rules of good mortgage underwriting (20 % down, 28/36 ratios) went out the window, (C) people at rating agencies who decided that if one pools enough junk loans into one bond, it's magically AAA, and (D) Credit default swaps which encouraged these bad loans, and when they collapsed a number of people walked away with billions of dollars.

Historically, some 5 % of junk bonds have defaulted each year, though defaults in recent years have been running at more like 2 % or 3 %.

As to junk bonds, I'd say that an attentive investor * will probably have a handful of opportunities during his / her lifetime to buy them at very advantageous prices (beginning of 09, for example).

Some of the bonds that come due in the next 12 months were trading at prices that offered hearty investors a 25 % to 35 % yield, one junk bond manager told us.

As a result, junk bond and stock prices can at times move in the same direction based on the market's perception of the companies strength or weakness.

I invest that middle - term money in a mix of junk high yield bond funds and «high» yield savings accounts at an online bank.

Stocks are harder to measure, so if you need better guidance, look at the yields on junk bonds.

Take a look at the holdings for the 2013 junk bond fund (discussed in detail below):

This is much worse than junk bonds, since the default rate on those even at the height of credit crisis never reached 20 %.

At a time like this, I reissue my call to sell stocks and buy corporate bonds, even junk bonds.

From my point of view, the remaining or recent investor in LINE has basically been getting a junk bond kind of instrument with an equity's position in the capital structure where the appreciation is capped / managed by the management (Although I must confess that I have only glanced at the press releases and progress since selling it....

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 %.

Corporate bonds that are investment grade are higher, and at the top of the risk level are high - yield junk bonds.

It's also not the time to chase attractive junk bond yields, since they're getting hit by interest rate risk and credit risk at the same time.

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.

A junk bond or high - yield bond is a bond rated at «speculative» grade or at «less than investment grade,» likely BB or lower.

We'll look at various bond market categories, everything from Treasury notes to junk bonds to emerging - market debt.

Before 1977, when new junk - bond issues took off,... non-investment-grade bonds were thought of as «bad» investments, at any price.