Sentences with phrase «bond rating»
The term "bond rating" refers to a assessment or evaluation given to a bond, which is a form of debt issued by companies or governments to raise funds. This rating indicates the reliability and creditworthiness of the bond, helping investors understand the level of risk involved in investing in that particular bond. A high bond rating suggests that the issuer is likely to repay its debt, while a low rating indicates higher risk and lower chances of repayment. Full definition
(Note that a ratio of over 90 % has been identified by bond rating agencies as being problematic for retaining our valued AAA - credit rating).
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«We're one of the few cities in the country with a fully funded pension» with a healthy rainy day fund and a AAA bond rating, she says.
The short - and medium - term «risk - free» government bond rates for the G - 5 countries all currently reside in negative territory (see Figure 1).
We believe this will create consistent demand for bond ratings as debt markets grow.
A very noisy, very public government oversight campaign to restore confidence in bond rating agencies.
Stock yields rose above bond yields briefly at the end of 2008, but have remained below bond rates for most of the time since then.
However, I still think the 5 - year bond rates price in the risk of interest rate changes.
The treasury bond rates are still pathetic even with potential increases.
High corporate bond rates raise interest costs for corporations, reducing profits, and raising discount rates (cost of equity capital).
Most investors rely on bond rating services to provide credit risk ratings.
Even the small number of mature charter schools that seek to float bonds in order to finance their facilities carry low bond ratings relative to traditional public schools (see Figure 2).
It's certainly possible that increased competition from higher bond rates will cause weakness in the equity market.
That should result in long - term bond rates returning to more normal levels.
Bonds rated below investment grade may have speculative characteristics and present significant risks beyond those of other securities, including greater credit risk and price volatility in the secondary market.
You can always find out a company's bond rating by searching on the internet.
The improved bond rating helps taxpayers because it allows the county to borrow money to fund capital projects at a lower cost.
Bond investors do their own due diligence, and do not depend on bond ratings for their analysis.
It is just hanging on to its investment grade bond rating.
When bond rates rise, which they have this year, these stocks tend to fall in price as fixed - income products, which are safer to begin with, become more attractive.
This will sound weird, but I am not as much worried about government bond rates rising, as I am with credit spreads rising.
What does it mean when bond rates go up?
Municipal bond ratings are conducted in a similar fashion to bond offerings by the federal government and private corporations.
Even with bond rates low, that doesn't mean stocks are better.
We provide a selection of the current best fixed - rate bond rates for you to compare.
The average yield of junk bonds rated «B» is 6.5 %.
If bond rates do get to far out of hand I feel that well be back to the dark ages.
Bond investors have an advantage when using bond rating as an investing guide to construct a balanced portfolio that stresses both safety and return.
In addition to the standard measures, I look for companies with good bond ratings.
Recently, we have seen some large and abrupt movements in currencies, commodity prices and even sovereign bond rates.
In order to simplify comparison of different bonds, bond - rating agencies make it their specialties to issue bond ratings for different bonds.
On the other hand, fixed income doesn't offer enough return to help companies make up for the investment losses of the past few years, particularly with bond rates dropping.
Bond ratings measure the safety of a particular bond.
Bond ratings make it easy for you to understand the default risk of a bond, while still taking into account all the other risks.
As one goes further down the yield curve in maturity, the correlations weaken, but still remain pretty tight among bonds rated single - A or better.
The favorable bond rating will enable the town to earn low interest rates on its debt, saving money.
We'll discuss bond ratings, tax savings, and risks to investing in the bond market.
Personally, I would be comfortable with most government, industrial and utility bonds rated single - A or better.
We live in an era of lower returns, because bond rates are lower and interest rates are lower generally.
If in doubt, stick to funds that buy mostly bonds rated AA and AAA.
That would put a floor on five - year mortgage rates of about 2.6 % — assuming the five - year bond rate doesn't fall any further.
A budget deficit of $ 138 million, three double - digit tax increases in a row, out of control spending and bonds rated near junk.
Since fixed mortgage rates follow bond rates this could mean further reductions in already ridiculously low fixed mortgages.
Yes, some high - quality corporate and mortgage bond rates will be pulled down with it, but so will discount rates for liabilities.
About half of institutional investors could already accept bonds rated below A - in their portfolios.
For instance, select only bonds rated «A» or better.
As bond rates start to rise, it's indeed possible that some income investors will shift away from dividend stocks back toward fixed - income investments like bonds and bank CDs.
Bonds rated C or D should be avoided, as they are considered unsafe.
She faced down critics to make difficult budget cuts, even boosting the city's bond rating slightly against the tide of fiscal crisis.
If you can demonstrate financial strength by providing strong business financials, it can drastically lower your performance bond rates.