Sentences with phrase «default than investment grade bonds»
Not exact matches
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.
http://www.etf.com/
High yield / non-investment-grade bonds involve greater price volatility and risk of default than investment - grade bonds.
Default risk Historically, the risk of default on principal, interest, or both, is greater for high yield bonds than for investment gradeDefault risk Historically, the risk of default on principal, interest, or both, is greater for high yield bonds than for investment gradedefault on principal, interest, or both, is greater for high yield bonds than for investment grade bonds.
Investment grade bonds had less than 0.2 % probability of a default within a year.1
Floating - rate loans» low credit ratings indicate greater potential risk of default relative to investment - grade bonds (though default rates for floating - rate loans historically have been lower than on high - yield bonds).
Income potential is higher than investment - grade bonds to offset the high level of default risk.
High Yield bonds involved greater risk of default or downgrade and are more volatile than investment grade securities, due to the speculative nature of their investments.
The main danger of a junk bond fund is that there will be a higher rate of bankruptcy / default than in an investment grade bond fund.
Without going into too much detail of statistics and standard deviation, I can tell you that there is a lot of research evidencing less than a 0.5 % default rate for investment grade municipal bonds for the last few decades.
High yield bonds are more volatile than investment grade securities, and they involve a greater risk of loss (including loss of principal) from missed payments, defaults or downgrades because of their speculative nature.
Junk bonds carry higher default risk and are thus far more sensitive to the health of the economy than investment - grade bonds.
Income potential is higher than investment - grade bonds to offset the high level of default risk.
Bonds that are not investment grade are much more likely to default than investment - grade bBonds that are not investment grade are much more likely to default than investment - grade bondsbonds.
High yield bonds are more volatile than investment grade securities, and they involve a greater risks of loss (including loss of principal) from missed payments, defaults or downgrades because of their speculative nature.
High - yield / non-investment-grade bonds involve greater price volatility and risk of default than investment - grade bonds.