Sentences with phrase «corporate bonds rated as»

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

Not exact matches

That relationship has played out this year — as interest rates have risen since January, the HYG high yield corporate bond ETF has come under pressure.

As the business sector accumulates more surplus cash, it has the effect of driving down interest rates because there's less demand for corporate bonds and other forms of business lending.

The assumed discount rate utilized is based on a broad sample of Moody's high quality corporate bond yields as of the measurement date.

The two largest funds in the segment — the $ 15 billion iShares iBoxx $ High Yield Corporate Bond ETF (HYG) and the $ 9 billion SPDR Bloomberg Barclays High Yield Bond ETF (JNK)-- have faced sizable asset outflows as investors fret over high valuations and rising interest rates.

The other advantage of corporate bond ETFs is that they will not rise as much as Canada treasuries, at least in the early phase of rate hikes.

Floating - rate * The coupon on a floating - rate corporate bond changes in relationship to a predetermined benchmark, such as the spread above the yield on a six - month Treasury or the price of a commodity.

Similarly, in the country, the ultra-rich pay - off the politicians and then extract the wealth via different mechanisms such as money printing, bond - price (interest rate) fixing, corporate tax holidays, and excessive executive compensation while the nation's balance sheet is laden with debt.

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 (LIBrate 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 (LIBrate, typically the London Interbank Offered Rate (LIBRate (LIBOR).

In terms of equities, the S&P 500 had its best month in four years in October, while booming corporate bond sales continued to meet high demand, appearing to reflect confidence in the strength of the US corporate sector as well as the persistence of low market interest rates.

He also noted that it is a very poor time to buy corporate bonds (high yield bond index yield 4.93 %) and Gundlach sees a negative return for the S&P in 2018 as the rates rout eventually gives the equity market the yips.

According to the Fed's Board of Governors website: «Movements in short - term interest rates [which are partly driven by the aforementioned funds rate] also influence long - term interest rates — such as corporate bonds and residential mortgages...»

Bank of America Merrill Lynch raised a total of $ 2.6 billion in investment banking fees in the US last year, when it benefited from a boom in junk bond underwriting as corporate issuers rushed to take advantage of low rates ahead of the Federal Reserve's plans to withdraw stimulus measures.

As seen in prior cycles, changes in short - term interest rates alone had yielded little effect on financial conditions, as buoyant risk sentiment strengthened equities, corporate bonds, as well as various forms of «esoteric» investmentAs seen in prior cycles, changes in short - term interest rates alone had yielded little effect on financial conditions, as buoyant risk sentiment strengthened equities, corporate bonds, as well as various forms of «esoteric» investmentas buoyant risk sentiment strengthened equities, corporate bonds, as well as various forms of «esoteric» investmentas well as various forms of «esoteric» investmentas various forms of «esoteric» investments.

However, munis may pay lower yields than Treasury or corporate bonds of similar maturity and quality, and are subject to the same rate risks as other bonds.

Rather, the increase in spreads appears to reflect both tightness in the Commonwealth Government bond market (where supply remains limited and demand by foreign investors appears to have increased) and upward pressure on swap rates (one benchmark against which corporate bonds are priced) as companies have sought to lock in fixed - rate borrowings due to expected increases in interest rates.

Using global industrial production growth as specified, annual total returns for 30 country, two regional and world stock indexes, currency spot and one - year forward exchange rates relative to the U.S. dollar, spot prices on 19 commodities, total annual returns for a global government bond index and a U.S. corporate bond index, and country inflation rates as available during 1970 through 2013, they find that: Keep Reading

As for bonds, you want to own both government and high - quality corporate issues in a range of maturities (although, to protect yourself against the possibility of rising rates, you'll want to keep the average maturity of your overall holdings in the short - to intermediate - term range).

Debt funds invest in fixed income instruments such as Corporate and Government bonds, are lower - risk investment options for those looking for better interest rates than their bank's savings accounts / fixed deposits.

Most corporate bonds are rated for risk by credit rating agencies, such as Standard & Poor's, Moody's or Fitch.

The S&P China High Quality Corporate Bond 3 - 7 Year Index, an investible index tracks the performance of Chinese corporate bonds within three to seven year tenors and uses more stringent rating criteria, has outperformed its boarder benchmark and returned 5.70 % YTD, as of August Corporate Bond 3 - 7 Year Index, an investible index tracks the performance of Chinese corporate bonds within three to seven year tenors and uses more stringent rating criteria, has outperformed its boarder benchmark and returned 5.70 % YTD, as of August corporate bonds within three to seven year tenors and uses more stringent rating criteria, has outperformed its boarder benchmark and returned 5.70 % YTD, as of August 27, 2015.

As interest rates began to rise from their all - time lows, however, investors began to shift from gold back into interest - bearing assets such as corporate or government - issued bondAs interest rates began to rise from their all - time lows, however, investors began to shift from gold back into interest - bearing assets such as corporate or government - issued bondas corporate or government - issued bonds.

Higher - investment grade corporate bonds, such as those with «AAA» credit ratings, tend to have very low default risk.

As Figure 1 shows, the Bloomberg Barclays US Corporate High Yield Bond Index posted positive returns during rising - rate periods, averaging a return of 8.86 % while the Bloomberg Barclays US Aggregate Bond Index was almost entirely in the red with an average return of -1.41 %.

The rising interest rates also affect credit as the S&P U.S. Issued Investment Grade Corporate Bond Index returns a -1.98 % month - to - date return and a -0.39 % year - to - date.

Further, the bond market declines as the interest rate increases, which may also affect the corporate bonds.

MYGA interest rates will vary over time as market conditions change, being driven most notably by longer - term Treasury and investment grade corporate bond yields.

Pursuing income with an all - weather bond portfolioDiverse opportunities: The fund invests across all sectors of the U.S. bond market, including mortgage - backed, corporate, and government bonds.A flexible strategy: The portfolio managers pursue an attractive level of income, adjusting the portfolio to favor attractive sectors as interest rates and market conditions change.Leading research: The managers, supported by Putnam's fixed - income research division, analyze a range of bonds to build a competitive portfolio.

Like equity indexes, bond indexes typically target a specific part of the market — such as a specific sector (e.g. Treasuries, corporates), credit rating (e.g. Aaa - A), or maturity range (e.g. 7 - 10 years).

Below investment grade issuers, whose credit risks rating agencies view as a higher concern, and which comprise the S&P U.S. Issued High Yield Corporate Bond Index, are yielding 4.66 % (YTW).

Lower - rated credit indices such as the S&P U.S. High Yield Corporate Bond Index and the S&P / LSTA U.S. Leveraged Loan 100 Index have not greatly outpaced investment grade corporates YTD, given the increase in risks.

The drawback, however, is that because U.S. government bonds are regarded as the world's safest fixed - income investments, the interest rates they pay investors are lower than those of corporate bonds.

Most corporate bond funds will experience a dramatic drop in value as we enter into a rising interest rate environment.

the dollar amount of all interest earned on government and corporate debt obligations and short - term certificates of deposit, as well as interest earned from cash in a brokerage account; for bond ladders it represents the estimated annual income that will be received from the securities that make up the rung; the income is calculated by multiplying the coupon rate by the quantity of bonds (face value)

According to the SEC (2013) the key risks of corporate bonds are default risk (also referred to as credit risk), interest rate risk, economic risk, liquidity risk and other significant risks including call and event risk.

the relationship between interest rates and time, determined by plotting the yields of all or as many bonds of similar credit quality (eg: Treasuries or AA - rated Corporates), against their maturities; yield curves typically slope upward since longer maturities normally have higher yields, although it can be flat or even inverted; the Fixed Income Search Results Scattergraph shows several smoothed yield curves for different fixed - income product types and credit qualities; these are based on bonds that Fidelity recognizes and are not equal to the entire universe of bonds, which is significantly larger than the number of bonds offered by Fidelity on any given day

However, munis may pay lower yields than Treasury or corporate bonds of similar maturity and quality, and are subject to the same rate risks as other bonds.

The new administration has signaled policies such as tax cuts, increased Treasury issuance and reduced regulation that many investors believe could result in higher interest rates, higher inflation and a favorable environment for corporate bonds.

Include debt such as municipal and corporate bonds, but add to the mix convertible, floating rate, and high yield bonds.

2017 was the sixth consecutive year of record U.S. corporate bond issuances, as companies continued to take advantage of the accommodative environment created by low interest rates and strong investor demand.

IGHG and HYHG do not attempt to mitigate factors other than rising Treasury interest rates that impact the price and yield of corporate bonds, such as changes to the market's perceived underlying credit risk of the corporate entity.

As with the Treasury and Municipal market bond listings described above, corporate bond listings also show the coupon, or interest, rate; maturity date, and last price.

The Fund pursues its investment objective by investing primarily in fixed income securities, such as U.S. Treasury bonds, notes and bills, Treasury inflation - protected securities, U.S. Treasury Strips, U.S. Government agency securities (primarily mortgage - backed securities), and investment grade corporate debt rated BBB or higher by Standard & Poor's Global Ratings or Baa or higher by Moody's Investors Service, Inc., or having an equivalent rating from another independent rating organization.

If you are trying to determine the risk portfolio of your cumulative holdings then I would suggest that yes, it would be appropriate to put your Defined Benefit pension plan into a risk category that has the same risk profile as a highly rated corporate or government bond.

This tracks the performance of corporate bonds that were rated as investment - grade at the time of issuance but have since been downgraded to non-investment grade.

Fixed income investments (also known as bonds) seem straightforward on the surface: The investor earns a fixed rate of return from the bond issuer (a public or corporate entity) for a specified term.

Cincinnati Financial also benefits from rising interest rates, as the money the company invests into bonds (government bonds as well as corporate bonds) will produce higher returns going forward.

Term and credit risk based 2 - factor model where the term risk premium is calculated as the difference between long - term treasuries and treasury bills and the credit risk premium is calculated from the long - term corporates and long - term treasuries while accounting for the differences in the interest rate sensitivities of long - term treasuries and corporate bonds (refer to the Hallerbach and Houweling, and Asvanunt and Richardson papers listed below).

Key credit spreads were widening, such as those between intermediate - term treasury bonds and riskier corporate bonds in funds like iShares Baa - Ba Rated Corporate Bond ETF (BATS: QLTB) or SPDR High Yield Bocorporate bonds in funds like iShares Baa - Ba Rated Corporate Bond ETF (BATS: QLTB) or SPDR High Yield BoCorporate Bond ETF (BATS: QLTB) or SPDR High Yield Bond (JNK).

I experienced the difficulties that the ratings agencies had in 2001 - 2002 as a corporate bond manager.