Sentences with phrase «bond default rate»

Standard and Poor's put the U.S. corporate bond default rate at about 2.5 % in March 2012.

Rieger, James & Cling T. January 2015 Fixed Income Update: The U.S. Municipal Bond Default Rate Hits 3 - Year High in 2014: 0.17 %

Based on the index data, the high - yield municipal bond default rate also jumped from 0.807 % to 1.264 % in 2014.

In comparison, according to Standard & Poor's Ratings Services Global Fixed Income Research estimates, the 2014 U.S. speculative - grade corporate bond default rate was 1.52 %.

By keeping bonds in the benchmark even when a default occurs, the index has become a living timeline, allowing us to track the municipal bond default rate.

NEW YORK, Aug 14 (Reuters)- The global junk bond default rate rose to 1.79 percent in July from 1.44 percent in June as U.S. financial and real estate firms struggled to keep up with debt payments, Standard & Poor's said on Thursday.

Despite highly publicized defaults such as Puerto Rico and Detroit, the municipal bond default rate remains low.

With rising bond default rates and the lowest Treasury yields in more than a generation, investors would be wise to reconsider long - term bank time deposits as a way to earn safe returns in excess of money market yields.

Not exact matches

This «recent stream of defaults» pushed the default rate of junk - rated bonds in the US to 3.9 % for the trailing 12 - month period ended in March, up from 3.4 % in December.

This caused the default rate for broadcast & media junk bonds to spike to 20 %, from 3.7 %, and it caused the default rate for leveraged loans in the sector to spike to 16 %, according to Fitch Ratings, which added soothingly:

While Venezuela has kept current on its bond payments, it has paid some coupons late, leading ratings agencies to declare a selective default and keeping creditors guessing.

Not only isn't there anywhere near enough bank capital in the US to supplant securitization, it is difficult to conceive that the universe of «rates» buyers will become mortgage credit buyers or move over to covered bonds (which default to the issuing bank's credit ratings), at least not at the same price levels and in the same size.

China may witness its first local government bond defaults, although the timing was uncertain, Fitch Ratings said in a press release issued on Sunday, amid persistent concerns over high debt levels in the world second largest economy.

Government bonds could help reduce default risk, but because of the length of maturity required to earn any meaningful yield, they do little to reduce duration risk - i.e. the overall sensitivity of a portfolio to interest rate rises.

You're still dealing with all of the same bond risks as every other investor when you buy individual bonds — interest rate risk, credit risk, inflation risk, duration risk, default risk, etc..

If interest rates rise bond funds get slammed and you'll be a loser (it has happened to me before, ouch)... but if you hold the bond nothing (other than the scenario of a default) happens & your principle is returned.

Tax cuts on wealth are promoted as if they will be invested rather than used to pay the financial sector more interest or be gambled on currencies and exchange rates, interest rates, stock and bond prices, credit default swaps and kindred derivatives.

Main risks: Rising interest rates could push bond prices down, and the bond's issuer could default.

ST gov» t bonds offer you the safest investment from a default risk perspective, but you earn a lower rate of interest on them.

Bonds are subject to market, interest - rate, price, credit / default, call, liquidity, inflation, and other risks.

Although bonds generally present less short - term risk and volatility than stocks, bonds do contain interest rate risk (as interest rates rise, bond prices usually fall, and vice versa) and the risk of default, or the risk that an issuer will be unable to make income or principal payments.

Fixed income investments entail interest rate risk (as interest rates rise bond prices usually fall), the risk of issuer default, issuer credit risk and inflation risk.

Advice: Because bonds with longer maturity face greater risk of changing interest rates (and greater default risk, as...

High - yield bonds represented by the Bloomberg Barclays High Yield 2 % Issuer Capped Index, comprising issues that have at least $ 150 million par value outstanding, a maximum credit rating of Ba1 or BB + (including defaulted issues) and at least one year to maturity.

It will be interesting to see how existing muni bonds default on their agreed upon interest rates.

Advice: Because bonds with longer maturity face greater risk of changing interest rates (and greater default risk, as well), they typically pay higher interest rates.

The default rate on double and triple A muni bonds has been 0.1 %.

Consider these risks before investing: The value of securities in the fund's portfolio may fall or fail to rise over extended periods of time for a variety of reasons, including general financial market conditions, changing market perceptions, changes in government intervention in the financial markets, and factors related to a specific issuer, industry, or sector and, in the case of bonds, perceptions about the risk of default and expectations about changes in monetary policy or interest rates.

Because credit and default risk are the dominant drivers of valuations of high yield bonds, changes in market interest rates are relatively less important.

Bonds are subject to market, interest rate, price, credit / default, liquidity, inflation and other risks.

Moody's data shows that bonds rated Ba had a 1.17 % probability of defaulting within a year, whereas more speculative bonds rated Caa — C, had a one - year default probability of more than 17 %.

Eliminating Puerto Rico's debts could raise interest rates on bonds to insulate against potential defaults, and subsequent debt elimination, on municipal bonds.

Floating - rate loans» low credit ratings indicate greater potential risk of default relative to investment - grade bonds (though default rates for floating - rate loans historically have been lower than on high - yield bonds).

Spreads between corporate bond yields and swap rates and the premia on credit default swaps have fallen slightly over the period, and are very low by historical standards (Graph 44).

Highly rated companies that are financially strong and have massive amounts of cash on their balance sheets — think Microsoft, Exxon, etc. — can typically offer bonds with lower yields since investors are confident that the companies won't default (i.e., miss interest or principal payments).

Investors should keep in mind that bonds are subject to risks, including market, inflation, interest rate and default, among others.

Investments in high - yield («junk») bonds involve greater risk of price volatility, illiquidity, and default than higher - rated debt securities.

Between 1970 and 2014, not a single Aaa - rated muni defaulted, while Aa and A-rated bonds — the kinds NEARX heavily invests in — were highly unlikely to default.

Although he says he is not sure whether the market will suffer $ 10 billion or $ 30 billion in defaults, he is certain that there will be a panic at the margin, and Muni bonds from the highest - rated on down will fall, in part because other investors tend not to step to invest.

The Venezuelan government and its state - run oil company, PDVSA, both defaulted on certain bonds in November, according to ratings agencies.

Bond investments are subject to interest - rate risk (the risk of bond prices falling if interest rates rise) and credit risk (the risk of an issuer defaulting on interest or principal paymenBond investments are subject to interest - rate risk (the risk of bond prices falling if interest rates rise) and credit risk (the risk of an issuer defaulting on interest or principal paymenbond prices falling if interest rates rise) and credit risk (the risk of an issuer defaulting on interest or principal payments).

Readers have no doubt noticed that numerous inter-market correlations seem to have been suspended lately, and that many things are happening that superficially seem to make little sense (e.g. falling junk bond yields while defaults are surging; the yen rising since the BoJ adopted negative rates; stocks rising amid a persistent decline in earnings growth; bonds, gold and stocks moving in unison, etc., etc.).

LB: With the default rate on municipal bonds being so low, is the benefit of diversification worth 100 BPS (1.0 %) in fees?

You can see that munis» default rate is near - zero and that Aaa - rated bonds don't even register.

Bonds and bond funds are subject to credit risk, default risk, and interest rate risk and may decline in value as interest rates rise.

High - yield corporate bonds are rated below investment grade and are subject to greater risk of default, which could result in loss of principal — a risk that may be heightened in a slowing economy.

The announcement comes as Venezuela faces acute financing problems after creditors and ratings agencies declared the government and state - run oil firm PDVSA to be in partial default for missing interest and principle payments on bonds.

These bonds offer higher yields but are coupled with a higher risk of default, as signified by these companies» lower credit ratings.

Holding an individual bond to maturity will result in the return of principal (assuming the bond issuer doesn't default), but those nominal dollars will be worth less with inflation and during periods of higher interest rates.

These bonds are issued by less - creditworthy companies that carry a higher risk of default than better - rated issuers.