Sentences with phrase «bonds rated single»

Personally, I would be comfortable with most government, industrial and utility bonds rated single - A or better.

Not exact matches

So the impact of falling rates may be smaller with a ladder than with a bullet strategy that targets a single maturity date or than with an investment in a small number of bonds.
But even if the ECB does bend to the will of the bond markets this year, and begins to buy sovereign debt directly, the single currency is left with all of the same weaknesses that existed prior to the crisis: the inability to tailor interest rate policy for each individual economy, the lack of foreign currency adjustment needed to offset differences in competitiveness, and growth - limiting trade dynamics throughout the area.
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.
For example: If I'm a U.S. - based investor and I buy a BMW bond and do not hedge the currency, every single coupon I receive, including the repayment at the bond's maturity, will be subject to the FX rate that prevails at the time.
All futures and options on futures trading - which includes such product areas as short - term interest rate and swap products, bonds, equity options, stock indexes, commodity and FX instruments - are transacted on a single electronic trading platform, LIFFE CONNECT, with central margining and clearing provided by ICE Clear Europe.
The portfolio's characteristics should make it similar to high - yield bonds, offering the chance for some thrills and interest rate insulation plus high single - digit returns.
The longer the maturity (for a single bond) or average maturity (for a bond fund), the more likely you'll see prices move up and down when interest rates change.
With less trustworthy AAA paper around, many muni managers have decided that holding AA and single - A rated muni bonds isn't so bad after all.
In addition to the standard measures, I look for companies with good bond ratings, which are the best single measure of a companyâ $ ™ s creditworthiness.
We clearly need to do some refinement of the data to see whether a few categories are highly resilient (for example, single - state muni bond funds might never change their star ratings) and, thus, skewing the results.
You don't want to put all your money into a single bond, since there is a risk of default even on the highest rated bonds.
No bonds of any kind can reach such a level of growth as any price appreciation in bonds depends on the few single - digit changes in market interest rates.
The discussion of the «negative convexity» and «option cost» of a bond is essentially a discussion of a single MBS feature (rate - dependent cash flows) measured in different ways.
My math is for a single bond to illustrate the cause / effect of rate change to price.
Early researchers treated bonds simply as single year trading vehicles, sometimes including the effect of capital gains and losses, but more often simply varying the single year interest rate.
For a single bond this isn't a big deal but if hundreds of thousands of dollars have been invested in a bond mutual fund and interest rates sharply spike over a few years than the initial capital could drop by double digit percentages.
Duration can be calculated to determine the price sensitivity to interest rate changes of a single bond, or for a portfolio of many bonds.
Since the late 1970s, changes in the interest rate environment have become the greatest single determinant of bond returns, and managing interest rate risk has become the most critical variable in the management of bond portfolios.
Also, single - state muni funds often own relatively long - term bonds, so they could get hit hard by rising interest rates.
There are so many ways to lose money investing in stocks and (these days, with interest rates poised to rise) even bonds; it's hard to say what is the single biggest mistake.
Historically, the internal rate of return has been close to long - term Treasury bond yields, often in the low single digits.
The newer EE Bonds have a single rate that does not change at any point.
Energy, emissions, agriculture, interest rates, government bonds, equity index and single stock futures and options
Unlike with Whole Life, where a portion of your monthly premium is placed in a single tax - deferred annuity account with a fixed interest rate at the time of the purchase of the policy, the savings portion of your premium in a UL policy is placed in a variety of bonds, mortgages and money market funds by the insurance company.
«The flight to safety by bond market investors in the post-global financial crisis world drove more cap rate compression,» for both grocery - anchored shopping centers and single tenant net lease deals, according to Jim Costello, senior vice president at RCA.
For example, over a three - year period, the average spread difference between single - A rated corporate bonds was 28 basis points, but this year that difference narrowed to two basis points, Wheeler explains.
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