Sentences with phrase «credit quality rated»

Hence, choose a liquid fund which invests in highest credit quality rated instruments, i.e. AAA rated.

High - yield bonds are issued by corporations with lower credit quality ratings.

High - yield bonds are issued by corporations with lower credit quality ratings.

A quality swap is a type of swap where you are looking to move from a bond with a lower credit quality rating to one with a higher credit rating or vice versa.

Bond rating firms, such as Standard & Poor's and Moody's, use different designations consisting of upper - and lower - case letters «A» and «B» to identify a bond's credit quality rating.

Investors should note that government bonds, or Treasuries, are not subject to credit quality ratings, and these securities are considered to be of the very highest credit quality.

value shown in my comparison table for each fund is a numerical approximation of the average credit quality rating provided by Morningstar (M *), but with some adjustments applied.

Investments are restricted to fixed - income securities with an average credit quality rating of double - A and minimum credit quality rating of investment grade.

These assets comprise high quality securities with an average credit quality rating of double - A.

The basis point change presented in the preceding table, however, represents a fixed basis point change in reference obligation credit spreads across all credit quality rating categories and asset classes and, therefore, the actual impact of spread changes would vary from this presentation depending on the credit rating and distribution across asset classes, both of which will adjust over time depending on new business written and runoff of the existing portfolio.

Most bonds also have a credit quality rating, which is an estimate of the future risk that the bond issuer could fail to make regular payments or pay back the loan at the end of the period.

• The bond portfolio's unweighted average credit quality rating, then weighted average credit quality rating, using both Moodys and S&P credit rating schedules.

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.

Liew said that with the wide variations in credit quality across emerging markets, from non-investment grade countries such as Argentina and Venezuela, to single - A rated ones, such as Malaysia, GIC was looking for «idiosyncratic situations,» in emerging markets which were likely to converge with lower - yielding developed markets.

«Increased losses are emanating from weaker collateral pools in the 2013 - 2015 transactions, which have weaker credit quality including lower FICO scores, higher amounts of extended term loans (over 60 months) and higher LTVs [loan to value ratios],» Fitch Ratings analysts wrote Thursday.

Factors that will have an impact on credit quality of companies include domestic consumption trends, exports, commodity price risks, sensitivity to changes in interest rates, working capital risk, capital expenditure and sensitivity to foreign exchange volatility.

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.

The audit firms are a «subsidized industry, like the credit rating agencies,» Turner told me, and companies are required to pay for «audits no matter the quality.»

In terms of credit card performance, the strength of our risk management capabilities and the quality of our portfolio resulted in new historic lows for the 30 plus delinquency and net chargeoff rates... The 30 - plus [day] delinquency rate fell below 2 %, and our 90 - plus [day] delinquency rate fell to below 1 %.

Credit card companies and mortgage lenders typically reserve their lowest rates and largest loans for people who have exhibited a quality track record when handling cCredit card companies and mortgage lenders typically reserve their lowest rates and largest loans for people who have exhibited a quality track record when handling creditcredit.

Behind this call is her expectation that this current era of loose monetary policy and tumbling interest rates may be coming to an end, which would put more pressure on companies with low credit quality.

That structure enabled some of these securities to gain high credit ratings even when the average quality of the underlying loans was poor.

Another historical factor in deteriorating credit quality — rising interest rates, which make some loans more expensive to repay — is absent in this cycle, as the Federal Reserve appears unlikely to raise rates again either this year or in 2017, according to Morgan Stanley's economists.

«Since June 2010, Gross has been reducing the $ 245 billion fund's vulnerability to interest - rate swings and increasing its reliance on credit quality by shifting from Treasuries to corporate and non-U.S. sovereign debt, a strategy that backfired last month,» according to Bloomberg.

target and maximum levels, assumed, for Mr. Hoyt's Wholesale Banking Group, continued double - digit loan growth and favorable credit quality; for Mr. Oman's Home and Consumer Finance Group, improvement in the home mortgage business due to cost control and expected improvements in the yield curve favorably affecting earnings from hedging activities; and for Ms. Tolstedt's Community Banking Group, growth in deposits, especially low or no - cost core deposits, continued loan growth, and stable credit loss rates.

Achievement of these goals was considered by the HRC as very challenging, even aggressive, given the expected modest economic growth for 2007 for the financial services industry, the impact and duration of the on - going flat / inverted yield curve (meaning short - term interest rates that are virtually equal to or exceed long - term interest rates, thus lowering profit margins for financial services companies that borrow cash at short - term rates and lend at long - term rates), potentially higher credit losses, fewer available high - quality, high - yielding loans and investment opportunities, and a consumer shift from non-interest to interest - bearing deposits.

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.

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

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

The model for the fixed - income style box is based on the two pillars of fixed - income performance: interest - rate sensitivity and credit quality.

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

Ratings by S&P and Fitch apply to the credit quality of a portfolio and are not a recommendation to buy, sell or hold securities of a fund, are subject to change, and do not remove market risks associated with investments in the fund.

To manage risk, we set targets for duration, sector and credit quality factors which align with our interest rate outlook, industry sector and credit views.

Notwithstanding further Fed rate hikes this year, we recommend caution regarding lower - credit - quality exposure — as we believe that the risks outweigh the potential rewards.

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.

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.

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

Individuals with a rock - solid credit history have a wealth of high - quality credit cards at their disposal, including those with the largest new member bonuses, highest cash - back rates, and longest 0 % intro APR offers.

An inverted yield curve is an interest rate environment in which long - term debt instruments have a lower yield than short - term debt instruments of the same credit quality.

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.

Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.

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.

• High quality company with a solid business model, wide moat, and excellent credit rating.

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.

Ratings agencies such as Standard & Poor's and Fitch Ratings use AAA to indicate the highest credit quality, while Moody's uses Aaa.

Canada's biggest banks are charging their preferred customers with sound credit quality 3.39 % for five - year fixed - rate mortgages, and 2.75 % for variable - rate mortgages this month, according to RateSpy.com.

Ratings by S&P, Moody's, and Fitch apply to the credit quality of a portfolio and are not a recommendation to buy, sell or hold securities of a fund, are subject to change, and do not remove market risks associated with investments in the fund.

At the same time, we are neutral on U.S. credit amid tight spreads and increasing sensitivity to rate rises, and prefer up - in - quality exposures.