Most
corporate bond investments made by the insurance industry are also in names that are relatively liquid.
April 10, 2012 By The Financial Lexicon Leave a Comment Filed Under: Bond Investment Ideas, Corporate Bond Commentary,
Corporate Bond Investment Ideas, corporate bonds
But let's keep things simple: let's invest in the best
corporate bond investment out there: long Baa bonds.
We believe that diversification is key to appropriate
corporate bond investment.
Even in the event of a bankruptcy, bondholders are likely to get at least something out of
their corporate bond investment.
Not exact matches
Serge Pepin, the head of BMO
Investments, says people should consider
corporate or high - yield
bonds — also known as junk
bonds — which pay higher yields than federal issues.
U.S.
investment - grade
corporate -
bond prices had been falling even before CVS's monster deal.
The iShares iBoxx $
Investment Grade
Corporate Bond, the iShares iBoxx $ High Yield
Corporate Bond and the SPDR Barclays High Yield
Bond have been hugely popular.
Investment - grade
corporates pay about two percentage points more than short - term government
bonds, and they're less risky than they used to be.
«What we're doing is reducing exposure to more cyclical industrial
corporate credit risk around the globe — high yield
bonds, bank loans,
investment - grade
corporate bonds,» said Collins.
the stated value of an
investment at maturity; includes
bonds, life insurance policies, bank notes, currency, some stocks, and other securities; typically $ 1,000 for a
corporate bond
But below that were the SPDR Bloomberg Barclays High Yield
Bond ETF (JNK), the iShares iBoxx $
Investment Grade
Corporate Bond ETF (LQD), the iShares iBoxx $ High Yield
Corporate Bond ETF (HYG) and the iShares 7 - 10 Year Treasury
Bond ETF (IEF).
You can invest in
bond funds by stated maturities (short - term, intermediate - term, long - term), credit quality (treasuries, junk
bonds,
investment grade
corporate bonds) or pretty much any other way you can separate
bond investments.
Some are tax - free or taxable municipal
bonds, and others are
investment - grade
corporate bonds and government
bonds.
The trio of ETFs, when they launch, will round out Franklin's
bond ETF lineup, which already includes a variety of actively managed fixed - income funds covering short - duration U.S. government debt, municipal
bonds and the
investment - grade
corporate debt.
Our team of credit professionals deliver sales and trading capabilities across a wide range of fixed income asset classes including high yield, distressed and
investment grade
bonds, convertible
bonds, public and private
corporate securities, leveraged loans and emerging market debt.
This leaves us roughly in the same position that we started the year, slightly overweight to spread product, i.e.,
investment - grade and high - yield
corporate bonds and emerging markets (more recently, we also went back to a slight overweight on commercial mortgage - backed securities).
We trade all fixed income assets, with a focus on more illiquid situations, from high yield, distressed and
investment grade
bonds and convertible
bonds to public and private
corporate securities and leveraged loans.
In the credit markets, both
investment - grade and high - yield
corporate bonds had negative returns for the first time in eight quarters, with down - in - quality subsectors in each unconventionally outperforming higher quality ones.
Each fund has a stated objective, generally focusing on a particular sector, such as
corporate or Treasury
bonds, or broad category, such as
investment grade or high yield.
Another way is to boost yield is to relax credit quality a little by opting for
investment grade
corporate bonds instead of triple - A government treasuries.
The index covers the U.S.
investment grade fixed rate
bond market, with index components for government and
corporate securities, mortgage pass - through securities, and asset - backed securities.
The average tradability score in the Fixed Income: U.S. -
Corporate Investment Grade segment is 63 out of 100, with the iShares iBoxx $
Investment Grade
Corporate Bond ETF (LQD) obtaining the highest rating of 96 out of 100.
The Barclays U.S. Aggregate
Bond Index is a market value — weighted index of
investment - grade fixed - rate debt issues, including government,
corporate, asset - backed, and mortgage - backed securities, with maturities of one year or more.
To implement our long maturity exposure, we use the iShares iBoxx
Investment Grade
Corporate Bond ETF (LQD / NY) because we also wanted exposure to the U.S. dollar.
The iShares Intermediate Credit
Bond ETF tracks a market - weighted index of USD - denominated
investment grade
corporate, sovereign, supranational, local authority and non-US agency debt with maturities between 1 - 10 years.
Investors should also find ample liquidity in the PIMCO
Investment Grade
Corporate Bond Index ETF (CORP), with $ 6.53 M in daily dollar volume.
Represents the
corporate and government - related sectors of Bloomberg Barclays Global Aggregate
Bond Index (which provides a broad - based measure of the global
investment - grade, fixed - rate debt markets) and is considered representative of global
investment - grade debt.
Within fixed income, we suggest raising average credit quality, particularly focusing on
investments in areas like high - grade
corporate and municipal
bonds.
Cutbacks in long - term
investment also are the product of
corporate raids financed by high - interest junk
bonds.
Last week, spreads on the Morningstar
Corporate Bond Index, an investment - grade corporate bond gauge, and the BofA Merrill Lynch High Yield Master Index, sho
Corporate Bond Index, an investment - grade corporate bond gauge, and the BofA Merrill Lynch High Yield Master Index, shot hig
Bond Index, an
investment - grade
corporate bond gauge, and the BofA Merrill Lynch High Yield Master Index, sho
corporate bond gauge, and the BofA Merrill Lynch High Yield Master Index, shot hig
bond gauge, and the BofA Merrill Lynch High Yield Master Index, shot higher.
That was followed by the iShares iBoxx
Investment Grade
Corporate Bond ETF (LQD), which had $ 428 million in flows, and the iShares 1 - 3 Year Treasury
Bond ETF, at just under $ 400 million in net flows for the week.
While fixed - income ETFs had net inflows on the whole, the iShares iBoxx $
Investment Grade
Corporate Bond ETF (LQD) and the iShares 20 + Year Treasury
Bond ETF (TLT) were at or near the top of the outflows list.
Traders have pulled more than $ 1.8 billion from two junk - focused ETFs just in the past week: the iShares iBoxx $ High Yield
Corporate Bond -LRB-- $ 1.06 billion, most of any ETF) and the SPDR Barclays High Yield
Bond -LRB--765.4 million, the second most), while also redeeming $ 577.4 million (the fourth most) from the iShares iBoxx
Investment Grade
Bond ETF, according to FactSet and ETF.com.
For people looking for ways to boost the income of a portfolio, that has often meant casting a wider net than the traditional core holdings of U.S. Treasuries and
investment grade
corporate bonds.
The iShares iBoxx $
Investment Grade
Corporate Bond ETF (LQD), the iShares iBoxx $ High Yield
Corporate Bond ETF (HYG) and the iShares Core U.S. Aggregate
Bond ETF (AGG) all made an appearance on the outflows list.
Being diversified means you have a wide variety of
investment grade
bonds —
corporate, municipals, Treasuries and possibly foreign issues.
We aim to add value in the
Corporate Advantage Fund by generating yield using a relative valuation approach and investing in investment grade corporate bonds, high yield bonds, preferred shares, and other fixed income se
Corporate Advantage Fund by generating yield using a relative valuation approach and investing in
investment grade
corporate bonds, high yield bonds, preferred shares, and other fixed income se
corporate bonds, high yield
bonds, preferred shares, and other fixed income securities.
Stocks are being retired by
corporate raiders in exchange for high - interest («junk»)
bonds, and by corporations using their earnings to buy their own stocks rather than to make new direct
investments.
Central bank purchases, investor yield - seeking and safe - haven flows have driven down yields on government and
investment grade
corporate bonds.
Our
investment team will typically select 25 — 50
bonds5 per account, and may invest in a mix of
corporate bonds, U.S. Treasuries, government agencies, mortgage and asset - backed
bonds, taxable municipal
bonds, and floating - rate
bonds.
When considering an
investment in
corporate bonds, remember that higher potential returns are typically associated with greater risk.
Investment grade vs. non-
investment grade (high yield)
Corporate bonds are generally rated by one or more of the three primary ratings agencies: Standard & Poor's, Moody's, and Fitch.
Franklin Limited Duration Income (FTF) is a closed end fund that seeks high current income and capital appreciation through
investment in high yield
corporate bonds, floating rate bank loans and mortgage and other asset backed securities.
The index contains treasury
bonds, government - related
bonds,
investment - grade
corporate bonds, mortgage - backed securities, and asset - backed securities.
The average bid / ask spread was 29 cents (per $ 100 par value) for both
investment - grade and high - yield
bonds, and the average daily trading volume was $ 2.2 million ($ 2.5 million) for
investment - grade (high - yield)
corporate bonds.
Their data set included constituents of the Bank of America Merrill Lynch
investment - grade (US
Corporate Master Index) and high - yield (US High Yield Master Index)
bond indexes, and covers the period January 1997 through December 2016.
The iShares iBoxx $
Investment Grade
Corporate Bond ETF (LQD) is not actively managed but seems like it may be the most comparable fund.
In fact, $ 7.7 billion was added to
investment - grade
corporate bond ETFs, according to an S&P Capital IQ research note.
The fund has no targeted maturity, but does target a duration within 10 % of the Bloomberg Barclays U.S.
Corporate Investment Grade
Bond Index, which as of the end March was 7.5 years.