Sentences with phrase «bonds at a credit rating»

You select bonds at a credit rating with which you feel comfortable and a rate and term that you need.

Not exact matches

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.

More from Balancing Priorities: What to do with your bond portfolio as Fed rates rise Credit scores are set to rise Don't make these money mistakes when you're just starting out «There is no sense in bearing the risk of an adjustable rate when you can lock in a fixed rate at essentially the same level,» he said.

The index includes bonds with a minimum credit rating BAA3, are issued as part of a deal of at least $ 50 million, have an amount outstanding of at least $ 5 million and have a maturity of 8 to 12 years.

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.

The investment team looks at many factors when assessing risk for each proposed bond, including but not limited to, issuer specific credit risk, sector risk, interest rate risk, and liquidity risk.

Each account will contain investment - grade taxable bonds rated BBB − or higher at time of purchase.2 The investment team will seek to maintain an overall portfolio credit rating average of A −.2 Please be aware that lower rated bonds do carry additional risk compared to higher rated bonds.

You may search for and purchase high yield bonds at Fidelity.com, where you can choose the credit rating levels appropriate for your portfolio and risk tolerance.

As noted earlier, arbitrageurs obtain a twofold gain: the margin between Brazil's nearly 12 % yield on its long - term government bonds and the cost of U.S. credit (1 %), plus the foreign - exchange gain resulting from the fact that the outflow from dollars into reals has pushed up the real's exchange rate some 30 % — from R$ 2.50 at the start of 2009 to $ 1.75 last week.

Currently, participants who have not taken a distribution receive interest credits at the rate equal to the 30 - year Treasury bond yield plus 0.5 % but not less than 5 %; the «interest credit» rate is adjusted annually.

For 2010, the quarterly investment credit was determined by multiplying the amount of the Account balance at the beginning of the quarter by 25 % of an average of 30 - year U.S. Treasury bond rates (adjusted quarterly).

At the same time, rising rates depress bond prices and may be especially tough for credit - sensitive bonds, because higher rates increase the cost of capital.

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.

So, market participants who buy and sell bonds at different prices are expressing different views about a number of variables: the likelihood that these cash flows will be received (credit quality); the velocity at which they may be received (prepayment or extension); their relative value to other bonds; and their interest rates relative to prevailing rates.

The Barclays U.S. Credit Index is the credit component of the Barclays Capital U.S. Aggregate Bond Index, which is a broad - based bond index comprised of government, corporate, mortgage and asset - backed issues, rated investment grade or higher, and having at least one year to matCredit Index is the credit component of the Barclays Capital U.S. Aggregate Bond Index, which is a broad - based bond index comprised of government, corporate, mortgage and asset - backed issues, rated investment grade or higher, and having at least one year to matcredit component of the Barclays Capital U.S. Aggregate Bond Index, which is a broad - based bond index comprised of government, corporate, mortgage and asset - backed issues, rated investment grade or higher, and having at least one year to maturBond Index, which is a broad - based bond index comprised of government, corporate, mortgage and asset - backed issues, rated investment grade or higher, and having at least one year to maturbond index comprised of government, corporate, mortgage and asset - backed issues, rated investment grade or higher, and having at least one year to maturity.

«The same thing holds with bonds — so you have to look at the credit rating of the issuer, [which can indicate] whether it can keep its promise [to pay you back with interest].»

The savings was generated by lower interest rates and an improved credit rating, since the original bonds were sold at the height of the county's red / green crisis, when the county's bond rating was much weaker, said Comptroller Stefan Mychajliw.

With the governor and state legislators at loggerheads over how to close the budget gap — a necessary first step toward restoring the state's credit rating and restoring its ability to sell bonds — there may be more rough sailing ahead.

Having a good credit history makes it possible for service providers to gauge how much of a risk you are, a good rating means more financial options and opportunities — this makes it possible to apply for a bigger bond with home loan providers at low interest rates, plus you can also get various other loans from other institutions at affordable rates.

So, market participants who buy and sell bonds at different prices are expressing different views about a number of variables: the likelihood that these cash flows will be received (credit quality); the velocity at which they may be received (prepayment or extension); their relative value to other bonds; and their interest rates relative to prevailing rates.

The effect of this rule is that a taxpayer who purchases a tax - exempt bond subsequent to its original issuance at a price less than its stated redemption price at maturity (or, if issued with OID, at a price less than its accreted value), either because interest rates have risen or the obligor's credit has declined since the bond was issued, and who thereafter recognizes gain on the disposition of such bond will have part or all of the «gain» treated as ordinary income.

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.

As credit risk and interest rates change, bonds can be bought or sold at a discount or premium to par value.

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.

The investment team looks at many factors when assessing risk for each proposed bond, including but not limited to, issuer specific credit risk, sector risk, interest rate risk, and liquidity risk.

the interest rate a bond's issuer promises to pay to the bondholder until maturity, or other redemption event, generally expressed as an annual percentage of the bond's face value; for example, a bond with a 10 % coupon will pay $ 100 per $ 1000 of the bond's face value per year, subject to credit risk; when searching Fidelity's secondary market fixed income offerings, customers can enter a minimum coupon, maximum coupon, or enter both to specify a range and refine their search; when viewing Fidelity's fixed - income search results pages, the term «Step - Up» instead of a numeric coupon rate means the coupon will step up, or increase over time at pre-determined rates and dates in the future; clicking Step - Up will reveal the step - up schedule for that security

Swapping for quality becomes especially attractive for investors who are concerned about a potential downturn within a specific market sector or the economy at large, as it could negatively impact bond holdings with lower credit ratings.

At the same time, you would then purchase another bond investment with similar but different features (yield, maturity and credit rating).

Of course, even if rates climb from 2 % to 10 %, assuming that you keep the bond to maturity and assuming that there is no applicable credit event, it will still pay out the same $ 1000 at maturity and the same $ 20 / year (2 % of nominal value $ 1000, p.a.).

In October 2014, we came to the end of the Fed's Quantitative Easing program, a process intended to keep long term interest rates low though the purchase of Treasury Bonds and to keep mortgage credit flowing at low rates though the purchase of agency - issued Mortgage - Backed Securities (MBS).

They focus on net fund alphas, meaning after - fee returns in excess of the risk - free rate, adjusted for exposures to three kinds of risk factors well known at the start of the sample period: (1) traditional equity market, bond market and credit factors; (2) dynamic stock size, stock value, stock momentum and currency carry factors; and, (3) a volatility factor specified as monthly returns from buying one - month, at ‐ the ‐ money S&P 500 Index calls and puts and holding to expiration.

Looking further ahead and turning to fixed income, Scott cautions corporate bond investors to be wary that although growth is buoyant at the moment, rising rates and the withdrawal of liquidity could precipitate a downturn in the credit cycle.

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

Your portfolio will contain a significant portion of bonds that have an S&P credit rating of AA or higher at time of purchase.

Companies with lower credit risk (higher credit rating) often enjoy a competitive advantage over their peers because higher rated companies can sell their bonds at a premium to lesser rated bonds.

The credit analysts at the rating agencies often knew their stuff, giving considerable insight into the bonds, but may have been hemmed in by rules inside the rating agency regarding the rating.

Not unlike your individual credit score, the organizations that rate bonds look at an issuer's assets, debts, income, expenses and broad financial history.

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.

The investment team will purchase investment - grade1 municipal bonds with a long - term credit rating of BBB − or higher at time of purchase and will ensure that the overall account maintains an average credit rating of A −.

You can check a company's default risk by looking at its bond ratings, which is the equivalent of a credit report for corporate bonds.

Yield curve is a line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity dates.

We also believe corporate bonds will benefit from this legislation, as the lower tax rate and potentially improving balance sheets from repatriation could enhance credit quality at many companies.

CC&BC is a NON-PROFIT credit counseling organization that is licensed and bonded in multiple states, Accredited by the Council on Accreditation and has an A + rating at the Better Business Bureau.

A yield curve is a line that plots the interest rates, at a set point in time, of bonds having equal credit quality but differing maturity dates.

In examining the subparts of the S&P 500 ® Bond Index, we can take a deeper look at how credit spreads have changed for AA - and BB - rated corporate bonds issued by constituents of the S&P 500.

A key reason that these losses can be permanent is many fund managers actively buy and sell bonds, meaning they are highly likely to sell positions at a loss after a rise in rates, decline in credit rating or when a lack of liquidity may mean they have to sell at a lower market price.

Most bonds also have a credit quality rating, which is an estimate of the future risk that the bond issuer could fail to make regular payments or pay back the loan at the end of the period.

Our debt ratings utilize fixed income market data such as bond - implied gaps and credit default swap spreads as well as traditional credit analysis to arrive at a debt rating that we feel is more accurate and timely than conventional debt ratings.

«Global Footprint Network has extensive experience in measuring ecological risks at the country level, specifically as it relates to their incorporation into sovereign bond investments and credit ratings.»

The firm said the bond's successful issuance was vital to the insurer to boost its capital and maintain its current credit rating, which had been at risk of downgrade.