Sentences with phrase «below investment grade»

The issues are rated below investment grade by bond rating agencies.
These funds invest in issues that have been rated below investment grade by analysts and therefore pay a higher rate of interest.
High - grade corporate debts, below investment grade corporate debts associated with companies that are gonna survive this are extraordinarily cheap.
At junk status during the company's dark days, the firm's debt is now just one notch below investment grade.
Should the rating fall below investment grade, the interest rate on the note will be adjusted to reflect the market rate for the subsequent rating.
Bond funds are typically classified as either investment grade quality (medium to high credit quality) or below investment grade quality, depending on the individual bonds in which they invest.
The continent has struggled to develop high - yield debt markets for growth companies below investment grade, and what it did achieve is collapsing in 2016.
Companies with below investment grade ratings offer a higher interest rate to attract investors.
However, below investment grade exposure is limited to no more than 25 % of total assets.
Investors have realized only in recent months that the quality of these investments is far below investment grade.
High - yield bonds are bonds that are rated below investment grade by the credit rating agencies.
The Fund is invested primarily in below investment grade debt and equity securities and has the ability to hedge risk.
The strategy seeks to generate total return by investing across the full maturity spectrum of below investment grade corporate bonds denominated in various currencies.
BofA Merrill US High Yield Index: Tracks the performance of U.S. dollar denominated below investment grade corporate debt publicly issued in the U.S. domestic market.
Fitch Ratings lowered Hungary's credit score below investment grade on Jan. 6, following similar moves from Standard & Poor's and Moody's Investors Service last year, saying doubts remain as to whether the government will submit to conditions for aid.
To provide investors with an opportunity to generate regular income through investments in a portfolio comprising of debt instruments which are rated not below investment grade by a credit rating agency, and money market instruments.
With the scandal set to hurt profits and as funding costs climb, the debt load will likely increase beyond 5 times Ebitda, Mizuho Securities USA said Thursday in a note to clients, adding its internal credit rating on BRF is now three steps below investment grade.
Similarly, the S&P / LSTA U.S. Leveraged Loan 100 Index, which measures the performance of below investment grade loan facilities, has gone from a May 22nd year - to - date high of 3.32 % to a 2.5 %.
Corporate and junk bonds are riskier than government issues, which is why yields are higher — investment grade corporates offer about 1 % more yield; below investment grade high - yield bonds, on average, pay 4.5 % higher than governments — but Pepin says default rates have fallen as the economy's improved, so there's less risk than there was during the recession.
Under normal market conditions, the fund invests substantially all of its assets in income producing securities (including below investment grade securities)
Exceptions for government debt rated below investment grade didn't feature in the ECB staff presentation, though the treatment of such securities in previous programs was mentioned, one person said.
He will be focused on managing below investment grade securities in each fund, working with current portfolio manager David Cole.
This is Puerto Rico's first new bond issue since it was down graded by all three ratings agencies to below investment grade last month.
Two of the largest risks are that the average credit quality of bonds in this sector is well below investment grade and the heavy issuance of zero coupon bonds creates a sector that has one of the longest durations in the municipal bond market.
Similar to high yield bonds — whose credit ratings are below the investment grade cutoff of «BBB» assigned by the rating agencies — are senior loans.
Right now, Pemberton sees value in selective high - yield North American debt rated just below investment grade at BB or B.
Anything rated BB or lower by S&P, or Ba and lower by Moody's, is considered below investment grade, and are sometimes known as «junk bonds.»
Both portfolios had bonds issued by the NCR - based Amtek Auto were pushed below investment grade by their rating agency, Brickwork.
«I don't think the slippage in credit is affecting the ability to finance deals, but once you go below investment grade it is completely a real estate deal,» says Bruce MacDonald, president of Boston - based Net Lease Capital Advisors.
I would hazard an educated guess that if Moody's has determined that Chicago is regarded as below investment grade, the stark reality is that Chicago is likely on the verge of collapse barring some likely smoke - filled back room deals cut between Obama and his former puppet - master, Rahm Emanuel (Mayor of Chicago).
Constrained Index (USD hedged) contains all securities in the BofA Merrill Lynch Global High Yield (USD hedged) Index, which tracks the performance of USD, CAD, GBP, and EUR denominated below investment grade corporate debt publicly issued in the major domestic or Eurobond market, but caps issuer exposure at 2 %.
Fitch downgraded Greece's long - term debt to B +, four notches below investment grade.
Investments in below investment grade quality debt instruments can be more volatile and have greater risk of default, or already be in default, than higher - quality debt instruments.
The Fund seeks both current income and capital appreciation by investing primarily in below investment grade debt and equity with the ability to hedge risk.
Below investment grade issuers, whose credit risks rating agencies view as a higher concern, and which comprise the S&P U.S. Issued High Yield Corporate Bond Index, are yielding 4.66 % (YTW).
The Bank of America Merrill Lynch U.S. High Yield Index tracks the performance of US dollar denominated below investment grade corporate debt publicly issued in the US domestic market.
The nation may need another $ 15 billion, according to the European Union, and Standard & Poor's said a debt default may be inevitable as it cut Ukraine's credit rating to CCC - last week, nine steps below investment grade.
These floating rate below investment grade loans have seen their weighted average yield rise by 19bps since May month end.
Will Illinois become the first state in US history to fall below an investment grade rating?
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