Sentences with phrase «bonds offer higher»

Many investors choose to buy high yield bondsHigh yield bonds Offer a higher return, like some equities, but with lower risk.

To compensate investors for the greater risk of default, junk bonds offer higher yields.

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

Although longer - term bonds offer higher yields, they don't necessarily offer enough of a return premium to justify the higher risk when compared to short - term bonds.

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

Will dividend investors continue to purchase suddenly volatile, high - yielding strategies when bonds offer higher rates and less risk?

Instead of investing such a large amount in a bond fund, should I search for individual bonds offering higher returns?

The theory pushed was that junk bonds offered higher returns but with a lower risk thanks to low default rates.

In return for this risk, their bonds offer the highest yield.

Not exact matches

NEW YORK, Jan 18 - U.S. fund investors pulled $ 3.1 billion from high - yield «junk» bonds during the latest week, Lipper data showed on Thursday, offering new warning signs about risk appetite despite global markets» continuing triumph.

While credit risk might seem like a bad idea with the U.S. economy still weak and the rest of the world looking equally uncertain, high - yield bonds do offer bigger returns than government and investment - grade bonds.

However, rates have retreated from over 8 percent in the last several weeks, and the credit risk of high - yield bonds can offer some diversification from the interest - rate risk of a portfolio of Treasury bonds.

Beyond the requirements that liquidity and regulators impose on us, we will purchase currency - related securities only if they offer the possibility of unusual gain — either because a particular credit is mispriced, as can occur in periodic junk - bond debacles, or because rates rise to a level that offers the possibility of realizing substantial capital gains on high - grade bonds when rates fall.

Also, they usually offer higher yields than municipal bonds.

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.

A carry trade is typically based on borrowing in a low - interest rate currency and converting the borrowed amount into another currency, with proceeds placed on deposit in the second currency if it offers a higher rate of interest or deploying proceeds into assets — such as stocks, commodities, bonds, or real estate — that are denominated in the second currency.

The $ 1.2 trillion market for U.S. junk bonds yields about 6.6 percent, double what's offered by higher - rated company debt, according to Bank of America Merrill Lynch index data.

Most of the capital provided to these companies comes from high - yield («junk») corporate bond sales, preferred share offerings, and debt.

Also, any tax bill that does away with or caps state and local tax deductions could further incentivize individuals living in high - tax states that offer preferential treatment to in - state municipal bonds to seek shelter in the bonds of their home states.

Although the bond market is also volatile, lower - quality debt securities, including leveraged loans, generally offer higher yields compared with investment - grade securities, but also involve greater risk of default or price changes.

And newly issued bonds tend to offer higher interest rates to make them more attractive to buyers.)

These investors may have to accept lower long - term returns, as many bonds — especially high - quality issues — generally don't offer returns as high as stocks over the long term.

The yields and risks are generally higher than those offered by government and most municipal bonds, and the income is subject to state and federal taxes.

However, note that some fixed income investments, like high - yield bonds and certain international bonds, can offer much higher yields, albeit with more risk.

If your stocks offer a 10 percent return over a year while your bonds return 4 percent, you will end up with a higher percentage of stocks and lower percentage of bonds than you started.

That's pretty much it for the high quality, sovereign bonds offered in any real size.

Higher yielding fixed income offers those higher yields because the issuers of the bonds have a better chance of defaulting on theirHigher yielding fixed income offers those higher yields because the issuers of the bonds have a better chance of defaulting on theirhigher yields because the issuers of the bonds have a better chance of defaulting on their debt.

Higher - quality bonds offer another advantage as well: These investments typically come with lower transaction costs, which can help manage the expenses associated with this strategy.

Lower - rated bonds generally offer higher yields to compensate investors for the additional risk.

Higher transaction costs Due to a typically large spread between bid and offer prices, and higher transaction costs associated with less liquid securities, trading high yield bonds can be cHigher transaction costs Due to a typically large spread between bid and offer prices, and higher transaction costs associated with less liquid securities, trading high yield bonds can be chigher transaction costs associated with less liquid securities, trading high yield bonds can be costly.

While yields on government bonds remain unattractive, according to Stopford, investment - grade corporate bonds offer a modest pickup in yield — and high - yield bonds, a more significant advantage.

While Treasury bonds offer the purest exposure to changes in rates, other asset classes have high sensitivity too.

The U.S. market offered significantly higher returns for stocks, bonds and bills over the final 25 years than over the first 75 years.

Ahead of this offering, Morgan Stanley created a green bond framework that describes the process through which projects are selected to receive funding, with the aim of ensuring that the Morgan Stanley green bond operates at high levels of transparency, disclosure and verification.

Over the entire century, high - grade corporate bonds offered an incremental 0.5 % of compounded return as a default risk premium.

In short, bonds were a disappointing investment over then entire period 1900 - 2000, offering relatively low returns and high risk.

The advent of on - line trading platforms is improving the state of play, but the bid / offer spreads on muni bonds is high, both outright and compared to taxable peers.

Ahead of this offering, Morgan Stanley created a green bond framework that describes the process through which projects are selected to receive funding, with the aim of ensuring that the Morgan Stanley green bond operates with high levels of transparency, disclosure and verification.

Floating - rate loans have yields and volatility similar to high - yield corporate bonds, with one major difference: As their name indicates, their interest rates «float,» adjusting periodically based on a benchmark rate, typically the London Interbank Offered Rate (LIBOR).

For borrowers, leveraged loans offer two significant advantages over high - yield bonds: They are cheaper, by about 100 basis points on average at the moment.

The trade - off is that longer - term bonds usually offer higher rates to start out.

High - yield bonds, those from companies with weak financial positions and poor credit, are offering rates as high as 9 % for 30 - year terms but also offer the risk of bankruptcy before the bond matuHigh - yield bonds, those from companies with weak financial positions and poor credit, are offering rates as high as 9 % for 30 - year terms but also offer the risk of bankruptcy before the bond matuhigh as 9 % for 30 - year terms but also offer the risk of bankruptcy before the bond matures.

Furthermore, with US equity markets reaching new highs and the interest - rate environment looking negative for bonds, we believe investors will seek out product offerings from alternative managers that can offer access to alpha2 across alternative asset classes.

Most bonds (not junk bonds) represent a less risky investment than most stocks, which means that stocks have to offer a higher return as a premium for increased risk.

Despite their diversification rule, dollar - denominated high - grade bonds offer low yields and a great likelihood of capital losses this year as the Federal Reserve (Fed) raises interest rates.

Instead, we would continue to emphasize U.S. high yield bonds and longer - dated municipals, as we believe both still offer some relative value within fixed income.

High - grade dollar - dominated bonds have little role in such a portfolio except to offer diversification and stability.

Money market accounts offer higher yields because they are linked to low - risk bonds and other relatively liquid instruments.

With yields down, investors are exploring other parts of the bond market that offer the prospect of higher income.

The market will do so by increasing the price of the high quality, long duration bonds that we currently favor to levels that no longer offer a compelling return and margin of safety.