Sentences with phrase «corporate bond rates»

The best time to own preferred shares is when corporate bond rates are just starting to fall.

High corporate bond rates raise interest costs for corporations, reducing profits, and raising discount rates (cost of equity capital).

Here's a graph to show how yields have done over the last 15 years for various corporate bond ratings.

For example, a recent study by the bond ratings firm Fitch Ratings compared default rates of run - of - the - mill general obligation bonds (without reference to their credit ratings) to the default rate of corporate bonds rated AAA.

TAXABLE BOND FUNDS: B - CHY - Corporate High - Yield Bond: Invest generally in corporate bonds rated below investment grade.

Lower corporate bond rates will encourage investment.

For example, during the early 2000s, corporate bonds rated as investment grade by Moody's had a historical default rate of 2.09 percent.

Corporate bonds rated Baa or triple - B, the low end of investment grade by Moody's and Standard & Poor's designations, offer the biggest yield premium since the early 1930s, notes RBC Capital Markets.

Here are some simple examples: At one time, you could buy GE parent corporate bonds rated AAA, or GE Capital corporate bonds with an identical rating, but no guarantee from GE parent.

Riding the line between investment grade and high yield, the S&P Crossover Rated Corporate Bond Index, which seeks to measure the performance of U.S. corporate bonds rated from «BBB +» down to «BB - ``, has returned -0.66 % MTD and 1.40 % YTD, as of March 13, 2015.

And as long - term corporate bond rates began moving up (eventually reaching the 10 percent area), both the equity return of 12 percept and the reinvestment «privilege «began to look different.

On the contrary, corporate bond rates do not reflect risk - free rates, since there is no guarantee that the companies issuing those bonds will be able to make the interest payments stipulated by the bond instruments.

Moody's released a report about climate impacts on corporate bond ratings last November and is preparing a similar report on municipal bonds now.

When applied to PG with D = $ 2.66, G = 7 % (see Pollie - Code DGR) and k = 10 % (corporate bond rate 2 % + inflation rate 2 % + equity risk premium 6 % (very solid company), the intrinsic value will be around $ 88.

While ratings on more exotic securities have failed, corporate bond rating has been fairly reliable.

Although not guaranteed, corporate bonds rated investment - grade or higher have a low chance of default.

Suppose you own a corporate bond rated BBB (lower - investment - grade quality) that is yielding 7.00 % and you find a triple - A-rated (higher - investment - grade quality) corporate bond that is yielding 6.70 %.1 You could swap into the superior - credit, triple - A-rated bond by sacrificing only 30 basis points (one basis point is 1 / 100th of one percent, or.01 %).