Sentences with phrase «credit quality bonds»

A balance must be struck between limiting risk using shorter duration or higher credit quality bonds versus maximizing investment yield with longer duration or lower credit quality bonds.

Higher levels of risk are generally associated with longer - term bonds when interest rates are currently low and deemed likely to go up in the future, as well as low credit quality bonds.

Do I have lower credit quality bonds?

Do I have high credit quality bonds?

«Many investors are interested in high credit quality bonds, but the supply of AAA - rated corporate debt in the U.S. is very limited,» said Michael L. Sapir, Chairman and CEO of ProShare Advisors LLC, ProShares» investment advisor.

Low credit quality bonds are cheaper and can produce higher returns, but they have a higher risk of default.

Higher credit quality bonds are more expensive but generally deliver reliable returns.

Credit Quality Bond Ratings typically range from AAA / Aaa (highest) to D (lowest).

Not exact matches

«The credit quality, this move up in interest rates, this loss of a four - decade uptrend in bonds, downtrend in yields, that's the source of the volatility which I think far surpasses these amazing developments technology has come across in the last couple of decades,» said Gordon.

«If you're looking to get 4 % or 5 % you're not necessarily going to get that with bonds these days unless you're going to lower the credit quality.

«Bonds can be a stable reserve of value, or they can be as volatile as stock,» said David Yeske, co-founder of advisory firm Yeske Buie Inc. «I think a lot of advisors are shifting their bond allocations to shorter maturities and higher credit quality.»

Moreover, Treasuries are quite sensitive to rate increases, and Ms. Jones found that the credit quality of the corporate bonds in the index had decreased since the financial crisis.

All the holdings are of high credit quality, similar to the bond ETF.

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.

That means looking at the fund's objective, average maturity, credit quality, yield and the composition of the holdings by bond type.

The NAV (net asset value) of a bond fund will move up or down based on a number of factors such as changes in interest rates, credit quality, and currency values (for international bonds) for the different bond holdings in the fund.

The fund can purchase securities of any credit quality, including those in default, but it will primarily invest in investment - grade debt, with no more than 20 % of the portfolio invested in junk bonds.

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.

A bond rating is a grade given to bonds that indicates their credit quality.

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.

In other words, equity dividends are higher by a third of a percentage points than quality bond yields, and that's before the dividend tax credit and before any capital gains.

Similarly, when it comes to your bond investments, consider varying maturities, credit qualities, and durations, which measure sensitivity to interest - rate changes.

On the bond front, consider diversifying across different credit qualities, maturities, and issuers.

As of May 2, 2018 the iShares Intermediate Credit Bond ETF MSCI ESG Fund Quality Score is 5.36 out of 10.

This environment makes credit research and a focus on quality extremely important when structuring a municipal bond portfolio.

Within fixed income, we suggest raising average credit quality, particularly focusing on investments in areas like high - grade corporate and municipal bonds.

«Total bond» funds invest in a combination of short -, intermediate -, and long - term bonds with varying degrees of credit quality and risk.

A bond's credit quality is determined by private independent rating agencies such as Standard & Poor's, Moody's and Fitch.

We prefer selected subordinated financial debt within European credit and favor high - quality U.S. credit and emerging market debt over government bonds, but credit valuations are elevated across the board.

There could be more pain in other sectors of the bond market based on credit quality and maturity, but the point is that bonds were never meant to be long - term return enhancers for your portfolio.

A downgrade in the credit rating of a bond by the credit agencies can affect bond performance as well if institutional investors are forced to sell because of restrictions on the credit quality of the bonds they're able to hold.

Further out in the credit quality spectrum, U.S. - based high - yield «junk» bond funds

Performance varies greatly for bonds of different credit qualities, but even during the worst bear market for bonds, the 40 - year period of rising rates from 1941 to 1981, the worst 1 - year loss for the Bloomberg Barclays US Aggregate Bond Index was just 5 %.

In pursuance of the Union Budget 2018 announcement, the board also cleared a proposal on changing the investment grade rating from AA to A for corporate bonds, which would boost investment scope while ensuring credit quality.

While spreads between yields on highly - rated corporate bonds and government bonds have remained above their historical averages, this continues to reflect strong demand for Commonwealth Government bonds rather than concerns about corporate credit quality.

UK government bonds are the highest credit quality security in the country, and this leg of your portfolio aims to give you security, not returns.

The market for bonds is very large and prices reflect the trade - off between rates, credit quality and bond maturity.

You select the bonds in which you want to invest given how long you want to invest and the credit quality you want.

This switch from raising funds in equity markets to bond markets would, other things equal, also tend to raise concerns about credit quality, as corporate leverage would tend to rise.

The same could be said for lower - grade, dollar - denominated bonds except the improvement in credit quality brought from accelerating economic growth will partially protect these bonds from the full extent of the losses suffered by high - grade bonds.

The investor should note that vehicles that invest in lower - rated debt securities (commonly referred to as junk bonds) involve additional risks because of the lower credit quality of the securities in the portfolio.

So, market participants who buy and sell bonds at different prices are expressing different views about a number of variables: the likelihood that these cash flows will be received (credit quality); the velocity at which they may be received (prepayment or extension); their relative value to other bonds; and their interest rates relative to prevailing rates.

Credit provides the potential for both diversification and incremental returns: While rate - driven government bonds have been rewarded during flight to quality periods, credit has been rewarded in times of strong economic gCredit provides the potential for both diversification and incremental returns: While rate - driven government bonds have been rewarded during flight to quality periods, credit has been rewarded in times of strong economic gcredit has been rewarded in times of strong economic growth.

By contrast, high - quality bonds such as those found in investment - grade corporate funds like the iShares 1 - 3 Year Credit Bond ETF (CSJ A-89) and the iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD A-66), etc.), or in Treasury portfolios such as the iShares 1 - 3 Year Treasury Bond ETF (SHY A-97) or the iShares 10 - 20 Year Treasury Bond ETF (TLH B - 65), etc.) tend to buffer portfolio volatility to a much greater degree.

The basic point here is that by focusing on declining credit quality you put yourself in a position to sell a bond long before any potential default.

Credit Quality is one of the principal criteria for judging the investment quality of a bond or bond mutuaQuality is one of the principal criteria for judging the investment quality of a bond or bond mutuaquality of a bond or bond mutual fund.

Bonds generally fall into one of two credit quality categories:

High credit risk and history of significant price volatility, especially relative to higher - quality bonds.

Municipalities have more risk than U.S. government bonds of similar duration and credit quality.

Two important bond measurements — credit quality and duration — can give you a good indication of the income you might receive and the risk you are taking on to pursue that income.